RE: DGOC vs Henry Hub18 Mar 2020 06:49
I received out to DGOC investor relations yesterday to see how corona was affecting them. I got a really strong reply less than 24 hours later. I firmly believe this is a great company that could actually benefit from the corona/ Saudi Russia oil wars etc
Reply below
Thanks for reaching out to Diversified; I appreciate your position as a shareholder in DGOC stock. As of today, we have experienced no change in our operations or production as a result of COVID-19. You may know that as an AIM-listed company we are required to publish financial and operational results twice per year, with the most recent published results for year ended 31 Dec 2019 published on 9 March 2020 (and available on our website) and the next published results expected after mid-year 2020. That said, we do sometimes publish interim period results in an RNS.
We were very excited with our results from 2019, unfortunately the combination of the oil production/price impacts and the COVID-19 concerns have caused market reactions that even we could not have predicted or anticipated. The bottom line is that we are the same company today that we were last year and the year before and will be tomorrow - one that is focused on cost efficiencies, hedge protections, and margin control. Our business model built on the concept of cash flow generation with a portion returned to shareholders is one that is unwavering, despite the economic market we all find ourselves in.
Our plan is to keep doing what we do best - operate efficiently and generate cash. As noted in our recent IR presentation, we are ~90% hedged at $2.70 per MMBtu for 2020, well above that at which current gas prices have recently traded. When combined with our focus on cost controls and wise capital allocation, we are well-positioned for 2020 to be as successful as 2019.
Thanks again for reaching out. I do hope you are able to remain healthy in this COVID circumstance.
Kindest regards,
Teresa
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