LONDON (Alliance News) - Diversified Gas & Oil PLC on Thursday reported significantly increased financials after series of acquisitions during 2018.
The company has oil and gas assets in the "prolific" Appalachian Basin onshore US.
For 2018, DGO's revenue soared to USD289.8 million from just USD41.8 million in 2017, while pretax profit was USD261.8 million from USD29.7 million.
The company completed USD938 million worth of acquisitions during the year, helping production climb to an average 41,000 barrels of oil equivalent per day from just 6,600 barrels a day in 2017.
At the end of 2018, DGO's exit rate production was 70,000 barrels of oil equivalent per day, from 10,400 barrels at the end of the prior year. Cash costs fell to USD8.55 per barrel from USD10.74 per barrel.
The acquisitions also significantly increased DGO's reserves, which now stand at 474 million barrels and proven reserves at December 31 from 55 million barrels a year before.
DGO began quarterly dividends during 2018, and paid out a total of 11.23 US cents compared to 5.4 cents in 2017.
"These results reflect a year of rapid growth as the company continued to capitalise on opportunities in Appalachia to complete a number of material acquisitions consistent with our stated growth strategy," said Chief Executive Rusty Hutson.
"Despite the strength of these financial results, they only partially reflect the financial capabilities of the business going forward."
"DGO is now a substantial producer generating strong free cash flow that enables us to maintain a healthy balance sheet, invest in organic growth and deliver exceptional value to our shareholders through our reliable quarterly dividend," Hutson continued.
"The near-term objective will be to leverage the scale of our expanded footprint to extract maximum operating synergies and cost efficiencies. We continue to consider a robust pipeline of opportunities that fit with our operating profile and acquisition criteria."
Shares were 3.9% lower on Thursday at a price of 112.50 pence each.
