Jefferies Says its a buy22 Dec 2021 23:38
BUZZ – Jefferies starts coverage on Diversified Energy with 'buy'
20 Dec 2021
* Jefferies starts coverage on the oil and gas producer with "buy" rating and price target of 160p, which implies ~58% upside to stock's last close
* Brokerage says co's "unique U.S. onshore gas production growth model is via M&A, not drilling"
* DEC has consistently grown in size and value, not only through drilling new wells but through M&A and operational efficiency of acquired assets - Jefferies
* Says 2021 has seen greenhouse gas emissions in focus, with DEC accelerating its net-zero carbon target to 2040 from 2050
* "DEC has consistently exceeded its regulatory well abandonment obligations of 80 wells p.a. and is investing in people and process to reach more than 200 wells p.a.," says Jefferies
* Seven brokerages covering the stock rate it "buy" or higher; median PT is 155p - Refinitiv data
(Reporting by Subhadeep Chakravarty in Bengaluru) ((subhadeep.chakravarty@thomsonreuters.com)