(Alliance News) - Diversified Gas & Oil PLC on Wednesday reported a surge in first-half performance, leading to strong interim earnings.
Production in the six months to June averaged 76,000 barrels of oil equivalent per day, net to DGO, just under quadrupled year-on-year. The exit rate production at the end of June was over 90,200 barrels.
Earnings before interest, tax, depreciation, and amortisation on an adjusted basis for the period was USD131 million, with USD24 million coming in June.
Chief Executive Rusty Hutson said: "As we entered 2019, we set the expectation our smarter well management programme would continue to offset natural declines within our portfolio and hold production flat excluding acquisitions.
"I'm pleased to report production from the wells we owned prior to those purchased from HG Energy averaged 70,000 barrels a day, marking a full year we've successfully delivered on our objective and highlighting the effectiveness of our efficient field operations. Strong production and a robust hedge portfolio underpin our healthy cash flows that position us to weather periods of commodity price volatility. Our portfolio retains an ample opportunity set for continued organic production optimisation which we will continue to exploit."
"Wise stewardship of capital remains a top priority as do our efforts to reduce our unit-level operating and general & administrative expenses. Our emphasis on controlling costs and commitment to maintaining an effective hedge portfolio are reflected in strong cash margins near 55% despite a period of lower natural gas and natural gas liquids prices," Hutson continued.
"We now enter the second half of 2019 with approximately USD335 million of liquidity, well-positioned to respond to market dynamics and opportunities to create long-term shareholder value."
Shares were 1.9% lower on Wednesday afternoon at 111.90 pence each.