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(Alliance News) - Diversified Energy Co PLC on Tuesday said it was trading in line with expectations, adding it delivered "record production" as it declared an increased interim dividend.
The Alabama, US-based gas and oil production company recorded an average output of 139,000 barrels of oil equivalents per day, or 833.0 million cubic feet equivalent of natural gas per day, during the first quarter of 2023.
Diversified Energy reported a net income for the quarter of USD400 million, including a one-off USD365 million gain on derivative fair value adjustments. It said it achieved its target earnings before interest, tax, depreciation and amortisation of USD150 million.
Diversified Energy declared an interim dividend of 4.375 US cents per share, up 3% from 4.250 cents per share in the first quarter of 2022. It said this was "consistent" with its fourth quarter dividend.
"Our team performed exceptionally well during the first quarter, once again delivering record production," Chief Executive Officer Rusty Hutson commented. "We remain focused on generating free cash flow to provide dividends and service our amortising debt while evaluating accretive growth opportunities that provide enhanced scale and synergies.
"We have built a sizable and resilient company, and believe our intrinsic value per share significantly exceeds our current share price, offering a compelling value proposition for our current and future shareholders."
In March Diversified Energy said its 2022 pretax loss widened to USD799,502 from USD550,900 in year on year, despite its revenue almost doubling. It declared an average quarterly dividend payment per share of USD0.043 cents and a total dividend of USD0.17 cents per share.
Shares in Diversified Energy were down 0.4% in London on Tuesday at 91.80 pence.
By Emma Curzon, Alliance News reporter
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