(Alliance News) - Diversified Energy Co PLC on Thursday reported a "solid" first-quarter, and said its cost reduction efforts have progressed as it looks to "navigate" tricky natural gas market conditions.
The natural gas producer from assets in the US Appalachian and Central regions, said average production in the first-quarter totalled 121,000 barrels of oil equivalent per day, "essentially flat" from the fourth quarter of 2023. The fourth-quarter figure was adjusted for recent assets sales, it added.
Diversified reported a net loss of USD15.1 million in the quarter, swinging from profit of USD392.8 million a year prior. The prior year included a USD475.0 million gain on fair value adjustments of unsettled financial instruments, compared to a USD13.6 million hit this time around.
Adjusted earnings before interest, tax, depreciation and amortisation declined by a third on-year to USD102.1 million from USD151.4 million.
Total revenue declined 35% to USD193.6 million from USD295.9 million.
Chief Executive Officer Rusty Hutson commented: "Building a portfolio of high-performing, mature producing assets and optimizing the cost structure has been the foundation of our strategic vision since inception. The company's ability to continue to deliver solid results, both operationally and financially, reinforces the success of this strategy. I am pleased that our ongoing focus on cost reduction opportunities has translated directly into a 7% sequential quarterly operating cost improvement, allowing us to effectively navigate the current natural gas market headwinds."
Shares in the firm fell 1.0% to 1,122.13 pence each in London on Thursday afternoon.
By Eric Cunha, Alliance News news editor
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Diversified Energy (DEC)