Company
LON:DEC
Diversified Energy Company is an independent energy company engaged in the production, marketing, and transportation of primarily natural gas related to its synergistic U.S. onshore upstream and midstream assets. The company's focus is to create long-term value for all stakeholders and to maximize shareholder returns through its differentiated strategy of acquiring, optimizing and managing existing natural gas and oil assets. In recent years, Diversified has grown rapidly by capitalizing on opportunities to acquire and enhance producing assets, leverage the operating efficiencies that result from economies of scale, and advance peer-leading sustainability programs.
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Oil price, Diversified, Longboat, SDX.WTI $112.12 +$7.42, Brent $115.62 +$7.69, Diff -$3.50 +27c, NG $4.90 +4c, UKNG 226.0p -10.0pOil priceToday was an even more odd day in oil markets even by recent standards. First thing, oil was motoring
"We are well positioned to enlarge the company's long-life, low-decline asset base without the need for additional equity at a time many quality assets are coming to market,” CEO Rusty Hutson said
"We look forward to pursuing additional ABS transactions this year given a favourable commodity price backdrop and increasing investor demand for securitisations of well-operated oil and natural gas assets," said Rusty Hutson.
Operationally and financially the year was ‘in line’ meanwhile through opportunistic hedging the company expects to have locked in premium prices through 2022 and 2023.
The additional liquidity will allow the company to pursue acquisitions without having to issue new equity
"Using the nearly $35mln of proceeds to reduce the borrowings on our revolving credit facility enhances our financial flexibility as we evaluate other value-accretive opportunities," said CEO Rusty Hutson Jnr
DEC described the acquisition deal as highly accretive and attractively priced
“Our partnership with the Bridger team is another important milestone as we continue to evaluate other investments that will support our methane-reduction initiatives."
Stockbroker Peel Hunt rates DEC as a 'buy' with a 160p price target.
“We are providing an in-depth look at our strategy for acquiring long-life, low-decline producing assets with an emphasis on the important work we do to improve our environmental stewardship in all facets of our operations."
“The good news is that DEC is committed to reducing emissions,” First Berlin Equity Research.
It was another active week in the oil and gas sector.
"This transaction exemplifies our strategy of efficiently managing our producing assets and extracting maximum value from predominantly undeveloped resources"
"Diversified remains committed to the continuous improvement of our environmental performance and to outpacing the expectations of our stakeholders,” Rusty Hutson said
It was another active week in the small-cap oil and gas sector.
"We continue to deliver strong operational and financial results through the third quarter demonstrated by consistently strong cash margins and higher production from our recently acquired assets,” Rusty Hutson said
The company said it intends to highlight the expansion of its asset retirement programme, which includes the retirement of approximately 115 wells in 2021 to date
The company said it has engaged in lengthy and transparent dialogue with Bloomberg's journalists over the last few months ahead of the publication of an article
“Sylvia adds significant experience in a number of strategic areas for the company," said chair David Johnson.
There was no shortage of talk about fuel prices, nonetheless, it was a quieter week for company news in the sector.
