Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF, FRA:DG2) (LSE:DEC) chief executive Rusty Hutson said he is thrilled with the performance in what is described as an active first half of 2021.
During the period, the firm launched a new leg in its growth strategy, establishing the ‘central’ focus area including territories in Louisiana, Texas, Oklahoma and Arkansas. It bolstered the portfolio in this area with the acquisition of three asset packages for a total of US$342mln.
DEC’s production business continued to perform well, setting a new record with an average rate of 106,000 barrels oil equivalent per day for the six-month period and exited the half with 116,000 boepd.
Earnings (hedged and adjusted EBITDA) amounted to US$151mln for the group and it generated US$117mln. It reported a net loss of US$84mln and adjusted net income of US$204mln, which includes US$81 of estimated tax credits based on production performance.
DEC maintained a 4 cents per share dividend for the second quarter of 2021. The company noted shareholder distributions totalling US$62mln in the first half and it made US$34mln of debt repayments.
“We remain committed to tangible shareholder returns, and are delighted to once again declare an additional US$0.04 dividend of the second quarter, which will add an additional US$34mln to the already more than US$62mln we have paid so far this year,” Hutson said.
He added: “Our balance sheet remains healthy as we continue into the second half of 2021 with ample financing capacity to consider further complementary growth opportunities.
"We have already delivered significant progress in the second half of the year by the closing of Blackbeard, announcing the Tanos acquisition and our near-term focus on the seamless integration and optimisation of all the Central Region acquisitions.
“Simultaneously, we are making great progress on a number of ESG initiatives as we strive to establish our baseline for emissions reporting, expand our TCFD disclosure efforts and define our path to a net zero carbon position by 2050 or sooner.”
DEC is hosting a Capital Markets Day, in October, which will provide further details about the company’s short and longer-term ESG efforts.