LONDON (Alliance News) - Diversified Gas & Oil PLC on Thursday said first quarter net production was in line with the end of 2018.
In 2018, the company completed its USD575 million acquisition of EQT Corp, more than doubling daily production to 60,000 barrels of oil equivalent per day. For the three months to March 31, net production was around 69,000 barrels of oil equivalent per day, which was "in line with year-end production".
Production in April was higher than 70,000 barrels per day from existing assets and more than 90,000 barrels including production from its HG Energy II Appalachia LLC assets
The company announced it has completed its USD400 million acquisition of HG Energy II assets, including 107 gas producing wells, on April 23. Diversified said it is integrating HG Energy II's wells into its portfolio and production is as expected, with net production at more than 20,000 barrels at the end of April.
The first quarter hedged adjusted earnings before interest, taxation, depreciation, and amortisation for Diversified was USD62 million, with margins of around 55%. Diversified said this result aligns with its year-end margins. The company's hedged adjusted Ebitda margin in the fourth quarter of 2018 was 57%.
Diversified said its realised priced for the first quarter aligned with expectations and it is managing volatility through an ongoing hedging programme.
Diversified Chief Executive Rusty Hutson Junior said: "With strong cash flows from our producing and midstream assets and current liquidity of over USD330 million that increases monthly as we utilize our free cash flow to paydown our revolver balance, we are well positioned to respond to market dynamics and redeploy our liquidity into the best opportunities for creating long-term shareholder value."
Shares in Diversified were flat at 129.00 pence on Thursday afternoon.
