(Alliance News) - Diversified Gas & Oil PLC hiked its second quarter dividend Thursday after interim profit and revenue quadrupled as oil & gas production surged and prices strengthened.
For the six months ended June, pretax profit quadrupled to USD84.0 million from USD21.4 million the year prior. This was after revenue surged more than four times to USD237.5 million from USD58.0 million the year before.
Performance was helped by total oil & gas production quadrupling to 13.7 million barrels of oil equivalent from 3.5 million the year prior. Similarly, the average realised sales price rose 4.7% to USD16.84 per barrel of oil equivalent from USD16.08 the year before.
"This was yet another highly active period for Diversified in which we delivered on a number of key corporate and operational milestones that progressed our long-term growth objectives," Diversified Chief Executive Officer Rusty Hutson said. "The acquisition of the HG Energy assets in April delivered another step-change in production volumes and cash flow generation, which took us into the top tier of London quoted independent producers."
"The company's strategy to build scale within the Appalachia continues to prove successful, with positive trends on cost metrics demonstrating the economies of scale and efficiencies afforded by our business model," Hutson added. "Our Smarter Well Management programme continues to yield positive results and our ability to hold production steady is a testament to our operating capabilities. Since January 1 about 430 previously non-producing wells were placed back into production."
Diversified proposed a 3.5 US cents per share second quarter dividend, up 25% from 2.8 cents the year before.
"In summary, our first half 2019 results reflect another period of strategic progress as the company remains exceptionally well positioned to generate consistent and sustainable value for our shareholders," Hutson continued.
Shares in Diversified Gas & Oil were flat at 106.00 pence in London on Thursday.