Diversified Gas & Oil PLC (LON:DGOC) shares will be included in the FTSE 250 index following the latest reshuffle of the index which takes effect later this month.
Chief executive Rusty Hutson said he expects it will further increase DGOC's market exposure and it will broaden the company’s investor base.
The profitable, dividend-paying America-focused gas and oil producer has risen in prominence in recent years driven by a series of transactions that consolidate portfolios of established fields in the Appalachia basin, across states such as Pennsylvania, Ohio, West Virginia and Kentucky.
READ: DGOC says its well positioned to capitalise on opportunities
DGOC’s most recent results in August confirmed production at 109,000 barrels oil equivalent per day (boepd) in the month of June, with the first half rate averaging 95,100 boepd. It achieved first-half earnings (adjusted EBITDA) of US$146mln and net income was reported at US$18mln.
It is paying a 3.75p per share interim dividend for the second quarter - the record date is November 27 and payment will be on December 18 – which takes the first half dividends to 7.25p per share.
DGOC shares will be added to the FTSE 250 Index and the FTSE All-Share Index later this month, effective September 21. It follows the company’s promotion into London’s main market from AIM in May this year.
In a statement, Hutson said: "Since listing in London just over three years ago, DGO has consistently delivered accretive growth, becoming the largest independent producer by volume listed on the LSE. DGOC's differentiated business model, focused on low-risk cash flow to underpin reliable quarterly dividends, continues to deliver sustainable growth and value creation.
“I look forward to welcoming new investors through this index inclusion and to continuing our positive momentum."
The index reshuffle, meanwhile, also sees ITV PLC (LON:ITV) drop out of the FTSE 100 into the FTSE 250. In all, there are ten changes to the FTSE 250 index. Among the other new entrants are CMC Markets PLC (LON:CMCX), Indivior PLC (LON:INDV), Premier Foods PLC (LON:PFD), and SDL PLC (LON:SDL).
Among those exiting the FTSE 250 index are Hammerson PLC, Equiniti Group PLC (LON:EQN), Go-Ahead Group PLC (LON:GOG) and PPHE Hotel Group Ltd (LON:PPH).
