The acquisitive US-based gas and oil firm, in its interim results statement, out today, revealed that net production rose to 76,000 barrels oil equivalent per day – up 292% on last year’s half yearly figure and up 22% on the preceding six months.
June’s exit rate measured 90,200 boepd, including 69,700 boepd from the previously acquired HG Energy II Appalachia assets.
DGOC highlighted continuing success with its ‘smarter well management’ strategy which offset natural production declines. Some 430 previously non-producing wells were brought back online during the six month period.
In terms of financial results, the company highlighted first half earnings of US$131mln.
The company reported US$237.4mln of revenue for the six months, with gross profit stated at US$96.9mln while a US$32mln gain on derivative financial instruments gave help it to an operating profit of US$107.7mln.
After financing costs of US$17.6mln and a US$6.1mln impact related to asset retirement obligations, the company reported US$84.04mln of income before tax.
Income after tax and available to shareholders came in at US$62mln.
DGOC highlighted that its cash margins remained consistent to the 54% reported in the first quarter despite a period of lower natural gas and natural gas liquids prices.
It announced a 3.5 cents per share second quarter dividend – to be paid in December - adding to the 3.42 cents paid for the first quarter, which together equate to almost double all of last year’s pay-outs, with DGOC highlighting its “step change in free cash flow”.
"This was yet another highly active period for Diversified in which we delivered on a number of key corporate and operational milestones that progressed our long-term growth objectives,” said Rusty Hutson, DGOC chief executive.
“The acquisition of the HG Energy assets in April delivered another step-change in production volumes and cash flow generation, which took us into the top tier of London quoted independent producers.”
Hutson added: “In summary, our first half 2019 results reflect another period of strategic progress as the company remains exceptionally well positioned to generate consistent and sustainable value for our shareholders."