(Alliance News) - Diversified Gas & Oil PLC on Thursday posted increased profit and output for the third quarter of 2020 and said that it has safely operated its assets essentially with no impact from Covid-19.
Chief Executive Officer Rusty Hutson Jr said: "We are pleased to report another solid quarter as we continue to execute our proven and resilient business model, which remains differentiated in the current climate.
"The outlook for natural gas is looking increasingly positive, and while we maintain good visibility of our future cash flows with stable production and a strong hedge position, we continue to monitor the forward price curve and remain opportunistic as we look ahead to further secure and enhance our cash flow profile."
The Birmingham, Alabama-based oil and gas producer reported adjusted earnings before interest, tax, depreciation and amortisation of USD75 million for the three months to September 30, up 17% from USD64 million a year ago. Second quarter adjusted Ebitda amounted to USD68 million.
Margins were flat quarter-on-quarter at 52% for the third quarter, but up from 51% a year ago.
Net daily production, including a full quarter of production from the May acquisition of the Carbon Energy and EQT assets, averaged 107,000 barrels of oil equivalent per day in the third quarter, up 17% year-on-year and 8% on the previous quarter. Average realised natural gas price stood at USD2.24 per million cubic feet of gas versus USD2.21 in the second quarter and USD2.28 in the third quarter of 2019.
Diversified Gas declared a third quarter dividend of 4.0 US cents per share, up 6.7% on 3.75 cents payout in the second quarter and 14% from 3.50 cents a year ago.
Diversified Gas was promoted to the FTSE 250 stock index in September. Shares were trading up 2.8% in London Thursday morning at 109.60 pence.
By Tapan Panchal; tapanpanchal@alliancenews.com
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