Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) (DEC) chief executive Rusty Hutson highlighted “strategic progress and solid financial performance”, as the company told investors it traded in line with expectations in 2023.
The oil and gas producer, in a statement ahead of its financial results, reported that output averaged 136 barrels oil equivalent per day in the year and it anticipates reporting earnings (adjusted EBITDA) of between US$540 million to US$545 million.
Asset sales of around US$240 million in the year enabled a 15% reduction in debt, it noted, and the company said it had around US$135 million of liquidity at the end of the year.
"Throughout the year, we have continued to focus our strategic initiatives on cash flow generation, capital discipline, and balance sheet management,” Hutson said in a statement.
“Continued investment in our asset base resulted in substantial emissions reduction and operational efficiency gains.
“We continue to evaluate opportunities to successfully execute our growth and return of capital strategies moving forward, as highlighted by our successful listing on the New York Stock Exchange - a key milestone that will deliver future value.”
Hutson meanwhile highlighted the “consistency and resilience” of the company’s strategy and business model.
“This resilience has allowed us to maintain our peer-leading production decline rate, and our continued focus on operational efficiencies delivered 51% margins, resulting in meaningful cash flow generation.
“Despite a challenging commodity price environment, we generated strong full year results, including growing EBITDA to a record level that exceeded consensus expectations.”
He added: “Next LVL Energy, our asset retirement team, completed its first full year of operations and successfully delivered on its strategic and financial objectives.
“I am very proud of the significant investments we have made to lower our methane intensity, and I am confident that we will deliver continued improvements that we will highlight in our formal year-end reports.”
DEC is scheduled to release its full-year results statement on Tuesday 19 March.