Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) delivered what chief executive Rusty Hutson described as consistent and reliable financial results.
“Our solid operational execution against the high-quality assets we manage, the ongoing integration of our most recent acquisitions … and our focus on efficiency delivered sequential cost improvement, which translated into 52% adjusted EBITDA margins,” Hutson said in the third-quarter trading statement.
“The combination of peer-leading, low capital intensity, and low corporate declines creates a distinct competitive advantage for our company, mitigating the need to replace production while maintaining free cash flow generation from an asset base that provides consistent production,” he added.
DEC’s net production for the quarter averaged 134,000 barrels oil equivalent per day (boepd) and it exited the quarter at 135,700 boepd.
The company saw US$140 million of earnings (adjusted EBITDA) for its third quarter and said it had an EBITDA margin of 52%, with an adjusted operating cost per unit of US$9.81 per barrel. It added that it has an annualized free cash flow yield of 22%.
DEC told investors it had US$135 million of current liquidity. And the company confirmed a third-quarter dividend maintained at 4.375 cents per share.
“Our commitment to providing long-term total returns to shareholders is underscored by our consistent dividend history, declaring our 25th consecutive dividend, returning over US$800 million of capital to shareholders, including share repurchases, since going public in 2017,” Hutson said.
“The management team and board remain focused on executing value-enhancing initiatives to drive additional returns for our shareholders."
In London, DEC shares traded 2.8p or 3.96% higher on Wednesday morning, to change hands at 73.58p.