(Alliance News) - Diversified Energy Co PLC on Tuesday established the parameters of its share buyback programme, stating that it will repurchase up to GBP97.4 million worth of shares.
Diversified Energy, an Alabama, US-based oil and gas production company, said that as approved at its annual general meeting, it has the authority to buy back up to 97.4 million shares, or a total value of GBP97.4 million.
The programme allows the company to purchase shares at its discretion, and can purchase its shares in open market transactions dependent on market conditions, share price, trading volume, and other factors.
Diversified Energy said that the purpose of the share buyback programme was to reduce the issued share capital of the company, and stated its belief that when the programme is implemented it will represent an appropriate use of its cash resources relative to its net asset value.
The company noted that the share buyback programme will expire at the earlier date of June 30, 2024, or at the company's annual general meeting of shareholders next year.
"Stifel Nicolaus Europe Ltd will purchase shares under the programme on behalf of the company," Diversified Energy said.
"The company will provide instructions to buy back shares as and when its management believes that, at the time of instruction, these repurchases will enhance earnings per share and would be in the best interest of shareholders generally."
Stifel Nicolaus Europe is a London-based financial investment management services provider.
Shares in Diversified Energy were up 1.8% at 85.15 pence in London on Tuesday morning.
By Will Neill, Alliance News reporter
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Diversified Energy (DEC)