Welcome to our dedicated page for Diversified Energy Company plc news (Ticker: dec), a resource for investors and traders seeking the latest updates and insights on Diversified Energy Company plc stock.
Diversified Energy Company plc (symbol: DEC) is an independent owner and operator of producing natural gas and oil wells. Concentrated primarily in the Appalachian Basin, the company acquires, manages, and optimizes gas and oil properties, along with associated midstream assets across several states including Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana.
Diversified Energy's core business strategy involves acquiring long-life assets, enhancing their operational and environmental performance, and eventually retiring these assets safely. This stewardship model has earned the company recognition for sustainability leadership from various ratings agencies and organizations.
Recently, the company celebrated a significant milestone by listing its ordinary shares on the New York Stock Exchange (NYSE) under the ticker symbol 'DEC', while maintaining its premium listing on the London Stock Exchange. This dual listing is expected to raise the company's profile in the US, broaden its access to high-quality equity investors, and attract more equity research analysts. The increased visibility is anticipated to enhance daily trading liquidity and open additional financing avenues, supporting the company's acquisitive growth strategy.
In terms of financial health, Diversified Energy recently executed a series of strategic transactions to bolster liquidity and reduce leverage. Notably, the company sold producing assets in Appalachia to a Special Purpose Vehicle (SPV), generating substantial proceeds and significantly reducing net debt.
The company also prides itself on its emission reduction initiatives. Diversified has achieved a Gold rating from the Oil & Gas Methane Partnership and Project Canary for its rigorous emissions monitoring. The company has reduced its Scope 1 emissions by more than 25% since 2020 and continues to deploy state-of-the-art detection equipment and protocols.
Furthermore, Diversified Energy's subsidiary, Next LVL Energy, has made strides in well retirement, having retired approximately 214 wells in 2022. The company collaborates with various states to retire orphan wells in a cost-efficient, environmentally sound manner.
The company's recent acquisition of working interests from Oaktree Capital Management in its Central Region assets is set to enhance production and cash flow. The deal also includes advantageous hedging contracts to protect against market volatility.
In summary, Diversified Energy Company plc is strategically positioned to responsibly produce energy, generate reliable free cash flow, and create shareholder value while emphasizing sustainability and operational excellence.
Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has announced a joint acquisition of natural gas properties in eastern Texas for $87 million. The company will acquire $68 million worth of Proved Developed Producing (PDP) assets, while a third-party development company will purchase most of the undeveloped acreage for $18 million. Diversified will retain a 5% interest in the undeveloped acreage for $1 million.
The acquisition will add 21 MMcfepd (4 MBoepd) of production and 70 Bcfe (12 MMBoe) of PDP reserves. Diversified's portion of the purchase will be funded through a combination of $35 million in new US-dollar denominated ordinary shares issued to the seller and existing liquidity. The deal is expected to close in Q4 2024.
Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has completed the acquisition of natural gas properties and facilities in eastern Texas from Crescent Pass Energy for a net purchase price of $101 million. The acquisition includes:
- PDP reserves of ~170 Bcfe (~28 MMBoe)
- Current net production of 38 MMcfepd (~6 Mboepd)
- Estimated NTM Adjusted EBITDA of ~$26 million
- Purchase price multiple of ~3.8x
The deal was financed through a combination of 2,249,650 new US-dollar denominated ordinary shares issued to the seller and $71 million in cash. CEO Rusty Hutson, Jr. highlighted the acquisition's attractive pricing and potential benefits from increased scale and density in the Central Region.
Diversified Energy Company PLC (LSE:DEC) reported solid interim financial results for the first half of 2024, demonstrating reliable production and robust cash flow. Key highlights include:
- Average net daily production of 746 MMcfepd (124 Mboepd)
- Net Income of $16 million, including $98 million in tax benefits
- Adjusted EBITDA of $218 million with a 50% margin
- Free Cash Flow of $121 million, excluding working capital impact
- Leverage ratio of ~2.8x, or 2.6x excluding Oaktree transaction
- Declared Q2 2024 interim dividend of $0.29 per share
The company announced $516 million in acquisitions, including the $410 million Oaktree working interests acquisition. DEC continues to focus on strategic growth, sustainable capital return, and systematic debt reduction while maintaining operational excellence.
Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has declared an interim dividend of 29 cents per share for the second quarter of 2024, covering the period ended June 30, 2024. Key dates include:
- Record Date: November 29, 2024
- Payment Date: December 27, 2024
- Last Date for Currency Election: December 6, 2024
The dividend will be paid in US dollars, with a sterling election option available. Shareholders wishing to receive payment in sterling must submit a currency election form by December 6, 2024. The sterling value of the dividend will be announced approximately two weeks before the payment date.
Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) has announced the timing of its 2024 Interim Results for the six months ended June 30, 2024. The company will publish its Interim Results on Thursday, August 15, 2024, followed by a conference call at 2:00 PM BST (9:00 AM EDT) to discuss the results. An audio replay will be made available shortly after the event.
Investors can access the conference call via toll-free numbers provided for the US and UK. Additionally, Diversified Energy will publish its 2024 Interim Report and a supplementary 2024 Interim Results Presentation on its website prior to the event. These materials will be available at the company's investor relations webpage.
Diversified Energy Company PLC (LSE:DEC) (NYSE:DEC) has announced its participation in several upcoming investor engagement events. The company's management team, including CFO Brad Gray and SVP of Investor Relations & Corporate Communications Douglas Kris, will attend investor meetings organized by Mizuho in Toronto on July 17, the Truist Energy Event in Denver on August 19, and the EnerCom Conference in Denver on August 20-21. Additionally, Douglas Kris and Senior Manager of Investor Relations Wren Smith will attend the Midwest IDEAS Conference in Chicago on August 29. Materials related to these presentations are available on the Company's website.
Diversified Energy has announced its acquisition of high-working interest, operated natural gas properties in eastern Texas from Crescent Pass Energy for $106 million. The acquisition will be funded through a combination of new share issuance and a senior secured bank facility, with an estimated net purchase price of $100 million. The assets include 827 net operated PDP wells, adding 38 MMcfepd of production and 170 Bcfe reserves with a PV-10 valuation of $155 million. The acquisition is expected to close in Q3 2024 and is strategically aligned with Diversified's focus on high-quality, low-decline assets.
Diversified Energy Company (DEC) has completed acquiring a proportionate working interest in certain assets within their Central Region from Oaktree Capital Management. The acquisition, initially announced on March 19, 2024, was closed on June 7, 2024, for a net purchase price of $377 million after adjustments. The acquired assets include PDP reserves of 510 Bcfe with a PDP PV10 value of approximately $462 million. The current net production is 122 MMcfepd, with an estimated 2024 Adjusted EBITDA of ~$126 million.
Additionally, Diversified Energy has increased its revolving credit facility by 26% or $80 million, bringing the total borrowing base to $385 million. This upsize results in an estimated post-transaction liquidity of around $130 million.
Diversified Energy Company (LSE:DEC; NYSE:DEC) announced its inclusion in the Russell 2000 Index, effective July 1, 2024. This follows the company’s solid first-quarter results and recent NYSE listing. CEO Rusty Hutson, Jr. highlighted that the inclusion is a significant milestone, expected to broaden their investor base and enhance trading liquidity. The Russell 2000 Index, part of the annual Russell US Indexes reconstitution, is considered a bellwether of the US economy, focusing on small-cap American businesses. About $10.5 trillion in assets are benchmarked against these indexes, utilized extensively by investment managers and institutional investors for index funds and active investment strategies.
Diversified Energy has announced that its management team will participate in several upcoming investor meetings and conferences. These events include Stifel Investor Meetings on May 23 in Dallas, the Louisiana Energy Conference on May 29-30 in New Orleans, the Jefferies Energy Conference on June 5-6 in Kiawah Island, the JP Morgan Energy Conference on June 18 in New York City, and the KeyBanc Investor Meetings on June 25 virtually. Members attending include CEO Rusty Hutson, CFO Brad Gray, and SVP-IR & Corporate Communications Douglas Kris among others. Presentation materials will be available on the company's website.
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