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The Markets
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Oil & Gas

Diversfied Energy Company ups dividend and kicks off buyback

Higher realised prices for gas and oil, up 16%, offset rising costs

Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) (DEC) raised its annualised quarterly dividend by 3% to 4.375c and said it had closed a fourth debt securitisation this year following the recent acquisition of assets from ConocoPhillips (NYSE:COP).

Average production in the three months to end-September 2022 was 135,000 barrels daily (808mln cubic feet gas equivalent), which DEC said was consistent with its estimated decline rate.

Higher realised prices for gas and oil, up 16%, offset rising costs as operating expenses rose by 11%, reflecting taxes, transport and general inflation.

Current liquidity is US$400mln, the statement added.

DEC, which operates onshore wells in the Appalachian region of the US, added it had retired 150 wells in the quarter and had now carried out methane leaking surveys on 60,300 sites with repeats on 75% of these.

Aerial surveys had also been conducted across 9,000 miles of midstream assets, with 75% of verified leaks repaired.

Rusty Hutson, chief executive, added: "Our unique, yet simple, business model continues to deliver tangible and sustainable returns amidst volatile capital markets.

“In addition to our dividend and to capitalize on the strength of the US dollar, we also acquired approximately eight million shares under our recently announced share repurchase program that enhance shareholder returns.”

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