Diversified Gas & Oil PLC (LON:DGOC) believes it can keep its dividend when others are losing theirs.
In a stock market statement, the North America-based firm updated investors on its operations in light of the coronavirus (COVID-19) pandemic.
Designated as a provider of "essential services" in each US state that in which it operates, the group said its oil and gas fields continue to produce with little-to-no impact from COVID-19.
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In a statement, the company said its operations are exempt from restricted movement orders. But, the firm highlighted that its commitment to the health and safety of its employees and to the citizens within communities remains a top priority.
DGOC noted that its operations are mostly located in rural locations which limits the amount of human-to-human interaction, “thus creating a natural 'social distancing' for DGO's field employees”.
The company emphasised that it has stable production, low operating costs and robust hedging strategy, adding its dividend is presently deemed safe.
DGOC hief executive Rusty Hutson said “we remain committed to safely produce and deliver our production in order to meet the energy demands of our local communities.
"Importantly and despite the recent decline in natural gas pricing, our demonstrable commitment to responsibly hedge commodity prices ensures healthy cash flows and allows us the ability to maintain our dividend to shareholders when others have been forced to decrease, suspend or eliminate their distributions.”