(Alliance News) - Diversified Gas & Oil PLC on Monday said its earnings for the first quarter of 2020 remained in line with the prior quarter, despite constraints caused by the virus pandemic and lockdown.
For the three months to the end of March, the US-based oil & gas company reported adjusted earnings before interest, taxes, depreciation and amortisation of around USD78 million, unchanged from the quarter before, but up 26% from USD62 million in the first quarter of 2019. The rise in earnings was supported by an average natural gas hedge price of USD2.73 per million British thermal units.
Operationally, first quarter net daily production was at 94,000 barrels of oil equivalent per day, up sharply from 69,000 barrels a year ago.
Diversified Gas & Oil declared a quarterly dividend of 3.50 US cents per share, up 2.3% from 3.42 cents the year before.
Looking ahead, the company said it is continuing due diligence on conventional Appalachian upstream and midstream assets which it intends to acquire from Carbon Energy Corp.
"Navigating unprecedented market volatility and general economic uncertainty validates the business model DGO defined nearly 20 years ago. Our unwavering commitment to maintain a healthy balance sheet while protecting capital returns to shareholders through responsible and long-term hedging remains a top priority. I'd like to commend the DGO team whose commitment to excellence during the ongoing pandemic has been realised through another exceptional quarter of strong production from our wells, including a seventh straight quarter of consistent production from our foundation of long-life and low-decline largely conventional assets," said Chief Executive Officer Rusty Hutson.
Shares in Diversified Gas & Oil were down 0.8% at 95.20 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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