Diversified Energy Company Announces Strong 2023 Results and Strategic Acquisition

Diversified Energy Company PLC (LSE:DEC),(NYSE:DEC), headquartered in Birmingham, Alabama, announced significant achievements for the fiscal year ending December 31, 2023, including a major acquisition in partnership with Oaktree Capital Management, L.P. The company reported record average net daily production of 821 MMcfepd, a peer-leading corporate production decline rate of approximately 10%, and a net income of $760 million. The year-end results also highlighted an Adjusted EBITDA of $543 million generating free cash flow of $219 million, with total revenue growing 2% to $1 billion.

On the sustainability front, Diversified accomplished its 2030 Scope 1 methane intensity goal seven years early, reducing methane intensity by 33% from the previous year. The company also received accolades for its ESG efforts, including the ESG Report of the Year award.

The acquisition from Oaktree consolidates Diversified's working interest in key wells in the Central Region, adding approximately 510 Bcfe of proven developed producing (PDP) reserves. This move is expected to boost overall company production by 15% and generate robust cash flow with a 2024 Adjusted EBITDA of $126 million. The acquisition details emphasize a gross purchase price of $410 million, integrating significant strategic and financial benefits for Diversified's growth and operational efficiency.

In response to its financial and operational outcomes, Diversified has realigned its capital allocation strategy, setting a new quarterly dividend of $0.29 per share. This adjustment aligns with the company's "Focus Five" strategy, aiming for optimized cash flow generation, cost structure optimization, and sustained, accretive growth, among other objectives. CEO Rusty Hutson, Jr. highlighted Diversified's strategic positioning and commitment to delivering shareholder value amidst challenging market conditions.