Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) chief executive Rusty Hutson described today’s third-quarter update as a strong operational and financial set of results, as the company confirmed record average net daily production.
Third-quarter production averaged 128,000 barrels of oil equivalent per day for the quarter, with an exit rate of 133,000 boepd.
Hedged earnings came in at US$92mln and margins were ‘nearly 50%’. It noted the quarter saw higher commodity prices and favourable outlook support for its hedging strategy.
Some 115 wells were retired amongst its Appalachian territory, which it notes is 144% of the level required under its agreements with state authorities.
DEC is to pay a 4.25 cents per share interim dividend for the quarter, up 13% from this time last year.
"We continue to deliver strong operational and financial results through the third quarter demonstrated by consistently strong cash margins and higher production from our recently acquired assets,” Rusty Hutson said in a statement.
“The integration and diligence of our Central Region acquisitions are progressing nicely, giving us heightened confidence in our ability to execute our growth strategy and to increase our quarterly dividend to a new high of 4.25 cents per share.
“As we realise synergies, progress our Smarter Asset Management programmes and proactively hedge in a higher commodity price environment, we expect to achieve even higher margins.”
Hutson added: “Importantly and demonstrating our commitment to continuously improve our sustainability performance, we have not only met our annual state-required well retirements, we have exceeded that level by more than 40% thanks in part to the hard work and diligence of our in-house well retirement team.”
DEC is due to provide investors with a comprehensive overview of its Environmental, Social, and Governance (ESG)-related initiatives at an upcoming Capital Markets Day event on November 17.