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.
As previously announced in its first-quarter trading statement, Diversified Energy ended the quarter with approximately US$110mln of liquidity.
In today’s statement, chief executive Rusty Hutson, Jr. commented: "We are grateful for the unanimous approval from our 14 banks of the US$375mln sustainably-linked loan borrowing base.
“Their support reflects confidence in the quality of our assets and our ability to acquire additional high-quality, mature-producing assets.”