Diversified Energy (DEC) Share Price Leapt 5.29% on Q3 Results

The Diversified Energy Company PLC (LON: DEC) share price leapt 5.29% after releasing its third-quarter performance record for 2023. During the quarter, the company achieved an average net daily production of 804 MMcfepd (134.0 Mboepd). 

When adjusted for extraordinary maintenance, the average net daily production reached 814 MMcfepd (135.7 Mboepd). The exit rate for September 2023 stood at 806 MMcfepd (134.4 Mboepd). The company maintained its industry-leading consolidated corporate decline rate at approximately 10%.

Diversified Energy Company reported an impressive Adjusted EBITDA of $140 million during the quarter. The Adjusted Operating Cost per Unit was $1.63/Mcfe ($9.81/Boe), a 2% decrease compared to the first half of 2023. The company achieved a commendable Adjusted EBITDA Margin of 52%.

Diversified Energy Company showcased a robust Annualized Free Cash Flow Yield of 22%, considering the impact of working capital changes. The leverage ratio remained healthy at 2.4x. Fitch affirmed all five of its rated ABS notes as BBB or higher, attesting to the company's Investment Grade status.

Diversified Energy Company boasts a current liquidity position of approximately $135 million, ensuring financial stability. The company declared an interim dividend for the third quarter of 2023, maintaining it at $0.04375 per share.

The company was honoured with the Best ESG Report 2023 award at the ESG Awards Europe, acknowledging its commitment to Environmental, Social, and Governance practices.

Diversified Energy Company received a Gold rating for the Oil & Gas Methane Partnership (OGMP) for the second consecutive year, highlighting its dedication to reducing methane emissions. The MSCI sustainability rating was elevated to AA, underlining the company's robust sustainability performance.

The company is on track to retire approximately 200 Diversified wells in 2023, a substantial effort that aligns with responsible stewardship practices.

Diversified Energy’s CEO Rusty Hutson, Jr. said: “We have once again delivered consistent and reliable results during the third quarter despite continued commodity price headwinds. Our solid operational execution against the high-quality assets we manage, the ongoing integration of our most recent acquisitions of Tanos II and ConocoPhillips, and our focus on efficiency delivered sequential cost improvement, which translated into 52% Adjusted EBITDA margins. The asset performance and stability of cash flows were further corroborated  by Fitch's recent affirmation of its ABS notes rating.”

Diversified Energy (DEC) share price. 

The Diversified Energy (DEC) share price leapt 5.29% to trade at 74.60p from Tuesday’s closing price of 70.85p.