Diversified Gas & Oil says its well positioned to capitalise on opportunities

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Diversified Gas & Oil says its well positioned to capitalise on opportunities

Diversified Gas & Oil PLC (LON:DGOC) chief executive Rusty Hutson told investors that the company is well-positioned to capitalise on opportunities created in the presently challenging times.

The producer, in its interim results statement, pointed out that it had some US$220mln of liquidity and a healthy balance sheet.

DGOC confirmed production at 109,000 barrels oil equivalent per day (boepd) for the month of June, with the first half rate averaging 95,100 boepd.

READ: DGOC says bank lending group reaffirms existing $425mln borrowing base

It achieved first-half earnings (adjusted EBITDA) of US$146mln and net income was reported at US$18mln. An interim dividend was confirmed at 3.75 cents per share, up 7% on last year.

The first half performance was boosted in May with the acquisition of asset packages from EQT and Carbon Energy.

“I’m pleased to report another successful period of stable production that recently surpassed the 100 MBoepd milestone, healthy cash generation funding an increasing dividend and prudent growth as we navigate a global pandemic and commodity price volatility,” Hutson said in the results statement.

“Our commitment to an opportunistic yet fiscally disciplined business strategy continues to deliver tangible results for our shareholders with nearly $150 million of adjusted EBITDA during the first half of the year, supported by a robust hedge portfolio and low operating costs that underpin a 55% cash operating margin including operating and all administrative cash costs.

“While others have been forced to cut or suspend their dividends over the past several months, the strength and durability of our cash flows allow us to not just sustain but to increase our second quarter dividend by 7% to 3.75 cents per share, wholly reflective of the confidence the Board has in the near-medium-term outlook for the business.”

Hutson added: “As we enter the second half of 2020 with approximately $220 million of total liquidity, a healthy balance sheet and with a focused and efficient operation, we are well-positioned to capitalise on the opportunities these challenging times create, all with our unrelenting focus on creating long-term value for shareholders.”

Proactiveinvestors.co.uk

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