Diversified Energy Company PLC (DEC)

[idpickering]

Strategic Divestiture of Non-Operated Assets.

Diversified Energy Company PLC (LSE:DEC) ("Diversified" or the "Company") is pleased to announce the sale of certain non-core, non-operated assets within Diversified's Central Region (the "Assets") for gross consideration of ~$40 million (together with the Assets, the "Transaction").

The Assets include approximately 200 net, non-operated wells producing ~3Mboepd (~17 MMcfepd). The gross consideration represents an approximate 4 times next twelve months cash flow multiple and includes ~85,000 associated net acres located in Oklahoma and Texas. The Transaction also demonstrates Diversified's ability to monetize its non-core assets, adds ~$40 million to the Company's liquidity, and is well-aligned with Diversified's strategic focus on operated PDP properties that benefit from the regional scale, vertical integration, and continuous application of Smarter Asset Management that underpin the Company's industry-leading production declines.

Commenting on the Transaction, CEO Rusty Hutson, Jr. said:

"This divestiture of non-operated properties underscores our commitment to optimise the assets we operate while strategically realising value from assets better suited for other operators and owners. Selling these assets with operating costs higher than those we operate positions us to further reduce our Central Region lease operating expenses and improve operating margins. The sale aligns with our initiative to realize value from non-core and undeveloped acreage. We will use the proceeds from this transaction to increase our liquidity that we can deploy towards our operated PDP-focused strategy designed to generate sustainable cash flows."

https://www.investegate.co.uk/announcem ... ts/7599302

Ian.

[idpickering]

Original-Research: Diversified Energy PLC (von First Berlin Equity Research GmbH): Buy.

First Berlin Equity Research has published a research update on Diversified Energy PLC (ISIN: GB00BYX7JT74). Analyst Simon Scholes reiterated his BUY rating and maintained his GBp 180.00 price target.

https://www.investegate.co.uk/announcem ... o-/7628552

Ian (No holding).

[idpickering]

Strategic Monetization of Assets.

Diversified Energy Company PLC (LSE:DEC) ("Diversified" or the "Company") is pleased to announce the sale of certain undeveloped acreage within Diversified's Central Region (the "Assets") for net consideration of ~$16 million (the "Transaction") to an undisclosed buyer.

The Assets include approximately ~22,000 net acres in Oklahoma, representing a small portion of the Company's undeveloped Central Region acreage. The Transaction demonstrates Diversified's ability to realize upside within its broader portfolio by monetizing undeveloped and non-core acreage, adds ~$16 million to the Company's liquidity, and is well-aligned with Diversified's strategic focus on operated PDP properties. Consistent with prior acquisitions, the Company ascribed no value to the leasehold in its purchase price allocation. Accordingly, 100% of the proceeds from this sale represent additional value to shareholders.

https://www.investegate.co.uk/announcem ... ts/7635574

Ian (No holding).

[88V8]

Discussion here beginning at 1:12.
Refreshingly bumbling live Q&A with Portfolio Matters.

Dividend sustainability.
The business model in a time of higher interest rates.
Need to keep refreshing the well portfolio.
Derivatives.
Dissection of the P&L account. Tax credits. Mark-to-market fluctuations.
Cash flow.
Hedging and future gas prices.
New debt to fund acquisitions and the dividend.
Oaktree hedge fund partner.
Opacity of PV10.

One can take positives or negatives.
The potential cost of new debt to fund acquisitions is a concern, but the switch from LIBOR+ to fixed rate gives more predictability.

V8 ... still holding.

[idpickering]

Notice of Interim Results.

Diversified Energy Company PLC (LSE: DEC) is pleased to announce that on Friday, 1 September 2023, the Company plans to publish its Interim Results for the six months ended 30 June 2023 (the "Interim Results"). The Company will host a conference call that day at 12:00pm BST (7:00am EDT) to discuss the Interim Results and will make an audio replay of the event available shortly thereafter.

https://www.investegate.co.uk/announcem ... ts/7723900

Ian (No holding, but tempted to be honest).

[idpickering]

Interim Results for the 6 Months Ended 30 June '23.

Delivering Reliable Results

• Record avg. net daily production: 852 MMcfepd (142 Mboepd); +4.4% vs 1H22: 816 MMcfepd (136 Mboepd)

◦ June 2023 exit rate of 864 MMcfepd (144 Mboepd)

• Maintained industry-leading consolidated corporate decline rate of ~10%

• Increased 1H23 Adjusted EBITDA(a) of $283 million (+26% vs 1H22: $224 million)

◦ 1H23 Adjusted Cost per Unit of $1.66/Mcfe ($9.96/Boe); -10% vs 2H22: $1.84/Mcfe ($11.04/Boe)(b)

◦ 1H23 Adjusted EBITDA Margin(c) of 52% (1H22: 48%)

• Net Income of $631 million, which includes $761 million (pre-tax) of non-cash hedge valuation gain

• Annualized Free Cash Flow Yield of 32%(d), excluding the impact of working capital

• Leverage ratio of 2.4x(e)

• Liquidity of ~$103 million

Executing Strategic Objectives

• Generated $62 million (net) in liquidity through the monetization of non-core assets(f)

• Completed $262 million acquisition of complementary Central Region upstream assets(g)

• Declared 2Q23 interim dividend of $0.04375 per share (2Q22: $0.04250 per share, +3%)

• Paid $84 million of dividends to shareholders through 2Q23

Creating Value Through Stewardship

• Increased MSCI sustainability rating to AA

• Achieved Project Canary Gold rating for low methane emissions on specific Central Region assets

• Completed >120,000 upstream surveys, with a post-inspection no-leak rate on ~97% of assets

◦ Included initial inspections for ~75% of Central Region

• Conducted aerial emissions surveys on ~6,300 miles of midstream systems

• Permanently retired 174 wells in Appalachia, including 87 Diversified wells

◦ 66 of 87 external wells retired in conjunction with state orphan well programs

• Converted pneumatic devices on 50+ well pads in Central Region, exceeding FY2023 goal of 50 well pads

https://www.investegate.co.uk/announcem ... 23/7729425

Ian.

[idpickering]

Second Quarter Dividend Announcement.

Diversified Energy Company PLC (LSE:DEC) is pleased to announce that the Board has declared an interim dividend of 4.375 cents per share in respect of 2Q23 for the three month period ended 30 June 2023, an increase of 3% over the 2Q22 dividend of 4.250 cents per share.

Dates as follows;

https://www.investegate.co.uk/announcem ... nt/7729325

Ian.

[idpickering]

Diversified Announces Upcoming Investor Engagement.

Diversified Energy Company PLC (LSE:DEC) ("Diversified" or the "Company") announced plans for members of its management team to participate in the following upcoming investor conferences and meetings:

· Pickering Energy Partners TE&M FEST, September 21 & 22, 2023, Austin, TX

Rusty Hutson (CEO) and Douglas Kris (SVP, Investor Relations & Corporate Communications)

o Paul Espenan (SVP, EH&S) will participate in a Methane Mitigation panel discussion

· Stifel Group Lunch and Investor Meetings, September 27, 2023, Dallas, TX

Rusty Hutson (CEO) and Douglas Kris (SVP, Investor Relations & Corporate Communications)

https://www.investegate.co.uk/announcem ... nt/7749145

Ian (No holding).

[idpickering]

Diversified Announces Executive Leadership Changes.

Diversified Energy Company PLC (LSE:DEC) announces executive leadership changes that allow for the continued execution of the Company’s long-term strategic vision. Eric Williams, Executive Vice President and Chief Financial Officer, has resigned from the Company, effective immediately, to pursue other professional opportunities. Mr. Williams will work with the Company through the end of September 2023 to ensure a smooth transition of leadership. Concurrent with Mr. William’s resignation, Brad Gray, the Company’s current Executive Vice President and Chief Operating Officer, has been promoted to President and will assume the role of Chief Financial Officer, effective immediately. As part of his transition in responsibilities, Mr. Gray has resigned from the Board of Directors. Leveraging a stable of top talent, Maverick Bentley, currently Senior Vice President of Midstream Operations, has been promoted to Executive Vice President of Operations; Benjamin Sullivan, currently General Counsel, has been promoted to Senior Executive Vice President and Chief Legal & Risk Officer; Ron Ridgway, currently Senior Vice President of Energy Marketing, has been promoted to Executive Vice President of Energy Marketing.

https://www.investegate.co.uk/announcem ... es/7760643

Ian (No holding).

[idpickering]

Q1 2023 Dividend Exchange Rate.

Diversified Energy Company PLC (LSE: DEC), announced on 09 May 2023 a dividend in respect of the first quarter ended 31 March 2023 of 4.375 cents per share ("Q1 2023 Dividend"). The Company will pay the Q1 2023 Dividend on 29 September 2023 to those shareholders on the register on 01 September 2023.

The Company announces that Shareholders who have elected to receive their dividends in GBP sterling will receive an equivalent payment of 3.52 pence per share, based on the 15 September 2023 exchange rate of GBP 0.80436=US $1.00.

https://www.investegate.co.uk/announcem ... te/7763367

Ian (No holding).

[88V8]

Latest Rogue Trader video analysis.. pick apart the accounts ... dosh in dosh out.... debt uncertainty...
Worth a watch if you hold or think to buy.

V8 (I hold)

[idpickering]

Diversified Announces Increase in Borrowing Base.

Diversified Energy Company PLC (LSE:DEC) ("Diversified" or "the Company") is pleased to announce its completion of the semi-annual borrowing base redetermination for the Company's revolving credit facility, structured as a Sustainability-Linked Loan. The borrowing base under the facility was increased to $425 million from $375 million with 100% approval from Diversified's 14-bank lending syndicate, resulting in current liquidity of approximately $120 million.

https://www.investegate.co.uk/announcem ... se/7777291

Ian.

[idpickering]

Comment on Share Price and Production Update.

Diversified Energy Company PLC (LSE:DEC) today notes the recent decline in its share price and confirms it is unaware of any operational or Company specific reason for this share price movement.

By way of a general update, the Company refers to our recent Announcement of the Interim Results for the Six Months Ended 30 June 2023, which were released to the market on 1 September 2023, along with the Announcement of the Increase in Borrowing Base, which was announced on 26 September 2023. Further to these announcements, Diversified confirms there has been no material change in its financial or operational condition.

The Company is pleased to provide an update to the market on its most recent Third Quarter 2023 production results, which are anticipated to be in the range of 805 MMcfepd (134 Mboepd)- 830 MMcfepd (138 Mboepd), in line with expectations, and reflects the sale of our non-operated assets completed during the second quarter of 2023.

Additionally, given the current equity market dynamics, the Company is no longer pursuing its previously communicated desire to list shares in the US. The Company will continue to execute share repurchases under its previously announced share repurchase program.

https://www.investegate.co.uk/announcem ... te/7797679

Ian.

[88V8]

Interview with Rusty Hutson, CEO and founder.

Business model... well capping... ESG.,.. leak detection... asset consolidation... political obstructions to infrastructure...
First 25 minutes on the business, then five minutes on the need for education and realism in the energy transition.

V8

[88V8]

Speculative analysis by The Oak Bloke of debt affordability, tracking of depletion through the accounts, and buy-backs.

I am not a fan of buy-backs so I'm comfortable with the low activity level.

V8

[idpickering]

Notice of Trading Statement Timing.

Diversified Energy Company PLC (LSE: DEC) is pleased to announce that the Company will publish a trading statement with respect for the three months ended 30 September 2023 on Wednesday, 15 November 2023.

https://www.investegate.co.uk/announcem ... ng/7864255

Ian (No holding).

[idpickering]

Diversified Energy Wins ESG Report of The Year.

Diversified Energy Company PLC (LSE: DEC) is pleased to announce it was awarded ESG Report of the Year by the ESG Awards 2023. The organization rewards those companies that show a progressive, sustainable, and thorough understanding of Environmental, Social, and Governance practices.

"This is an exemplary ESG Report, well written and clearly laid out, explaining exactly what progress the business has made to decarbonise its essential operations," said the ESG Award 2023 judges. "The report appeals to both head and heart."

Commenting on the recognition, Teresa Odom, Vice President-Sustainability said:

"From the start, we've made a clear commitment to transparency along our ESG journey, and we continue to abide by and lean into that commitment. Our team of approximately 1,600 employees remain steadfast in their mission to responsibly operate and engage with the communities we're privileged to work in and call home. We will continue using our reports to demonstrate Diversified's long-term sustainability and value-first operations while promoting our environmental stewardship, social engagement, and community commitment."

https://www.investegate.co.uk/announcem ... ar/7872751

Ian (No holding).

[idpickering]

Third Quarter 2023 Trading Statement.

https://www.investegate.co.uk/announcem ... nt/7881836

Ian.

[idpickering]

Third Quarter Dividend Announcement

https://www.investegate.co.uk/announcem ... nt/7881764

Ian.

[88V8]

Third Quarter Dividend Announcement

Unchanged. Yield c18%.

V8