Diversified Energy Company to cultivate new ‘region of focus’ as it aims to replicate Appalachia successes
About the company
Diversified Energy Company PLC is an independent energy company focused on acquiring and enhancing primarily natural gas producing assets and related midstream infrastructure in the US onshore.
The company’s current operations are in the Appalachia Basin and the central US states of Louisiana, Oklahoma and Texas.
How it is doing
18 Sep 2023
Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) said chief financial officer Eric Williams has resigned to pursue other professional opportunities.
Williams will work through the end of September 2023 to ensure a smooth transition of leadership, said the statement.
Brad Gray, currently chief operating officer, will now become CFO, effective immediately, DEC added.
Rusty Hutson, chief executive, added: “On behalf of the entire Diversified team, I would like to thank Eric for his contributions over the last six years.
01 Sep 2023
Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) (DEC) saw production increase by 4% in its latest half-year, which included the acquisition of the Tanos II assets.
DEC, which is focused on Appalachia in the US, said production during the six months to end of June 2023 averaged 142,000 barrels of oil equivalent a day (136,000) and ended the period at a run rate of 144,000.
17 Jul 2023
Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) (DEC) has announced a further divestment of assets, with the sale of a package of 22,000 net acres of undeveloped ground in Oklahoma, in a transaction worth US$16 million.
The deal, with an unnamed counterparty, demonstrates the company’s ability to realise upside from within its portfolio by monetising undeveloped and non-core acreage, and is well-aligned with its strategic focus on its operated and more advanced projects, DEC highlighted.
What the brokers say
18 May 2023
Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) was today boosted as its finance facilities got a favourable nod after its syndicate of fourteen banks reviewed the North American oil and gas firm’s borrowing base.
The borrowing base was retained at US$375mln though its facility which is described as a ‘sustainability-linked loan’.
Stockbroker Peel Hunt in response repeated a ‘buy’ recommendation for DEC with a 175p price target that suggests some 90% upside to the current price of 91p.
What management says
11 Aug 2022
Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) chief executive Rusty Hutson joined Proactive to talk about the company’s performance for the six months ending June 30, 2022.
Hutson noted that the the US oil and gas group upped its dividend 6% to 4.25 cents per share to pay out a total of US$72 million, saying that shareholder returns continue to remain a priority for the company.
He also touched on the company’s focus on ESG initiatives and how recent acquisitions underpin its strategy.