Diversified Energy (DEC) Stock

Diversified Energy Company PLC (OTCQX:DEC) Q3 2024 Results Conference Call November 12, 2024 8:00 AM ET Company Participants Douglas Kris - VP, IR Rusty Hutson - CEO Brad Gray - President & CFO Conference Call Participants Bert Donnes - Truist Securities David Round - Stifel Simon Scholes - First Berlin Operator Greetings, and welcome to the Diversified Energy Third Quarter 2024 Results Conference Call. At this time, all participants are in listen-only mode.

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) this week reported its Q3 performance, highlighting strong production levels and continued expansion into environmentally beneficial initiatives. The company's CEO, Rusty Hutson Jr., shared insights with Proactive into quarterly performance, methane capture projects, and potential regulatory impacts from the incoming U.S.

Diversified Energy Company PLC (OTCQX:DEC) Q3 2024 Earnings Conference Call November 12, 2024 8:00 AM ET Company Participants Douglas Kris - VP, IR Rusty Hutson - CEO Brad Gray - President & CFO Conference Call Participants Bertrand Donnes - Truist Securities David Round - Stifel Simon Scholes - First Berlin Operator Greetings, and welcome to the Diversified Energy Third Quarter 2024 Results Conference Call. At this time all participants are in listen-only mode.

Diversified Energy Company PLC's (LSE:DEC, NYSE:DEC) third quarter benefited from contributions from the Crescent Pass acquisition as well as a robust performance from the underlying portfolio, says Stifel. On top of this operational delivery, Diversified continues to find new ways to extract value from the portfolio, says the house broker.

Continued Focus on Debt Repayments & Additional Undeveloped Land Sales Expanding Value Creation with Revenue from Coal Mine Methane Environmental Credits BIRMINGHAM, AL / ACCESSWIRE / November 12, 2024 / Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) is pleased to announce the following operations and trading update for the quarter ended September 30, 2024. Delivering Reliable Results Recorded average 3Q24 production of 829 MMcfepd (138 Mboepd) September 2024 exit rate of 851 MMcfepd (142 Mboepd) Operating Cash Flow of $102 million, and Net loss of $1 million inclusive of non-cash unsettled derivative adjustments, and non-cash depreciation, depletion and amortization Achieved 3Q24 Adjusted EBITDA(a) of $115 million and Free Cash Flow(b) of $47 million Realized 49% 3Q24 Adjusted EBITDA Margin(a) and TTM Free Cash Flow Yield(b) of 32% 3Q24 Total Revenue, Inclusive of Settled Hedges per Unit(c) of $3.23/Mcfe ($19.38/Boe) 3Q24 Adjusted Operating Cost per Unit(d) of $1.71/Mcfe ($10.23/Boe) Reaffirmed credit facility borrowing base at $385 million with $102 million of undrawn capacity and unrestricted cash Revenue Growth Initiatives Announced fixed-price contract for gas delivery to a major Gulf Coast LNG export facility Generated ~ $23 million year-to-date in cash flow through divestiture of undeveloped leasehold Expansion into adjacent market of Coal Mine Methane ("CMM") capture and environmental credit sales generating $8 to $10 million of EBITDA in 2024 Executing Strategic Objectives Retired $154 million debt principal through amortizing debt payments, year-to-date Declared 3Q24 dividend of $0.29 cents per share Repurchased ~1.4 million shares in 2024, representing ~$20 million of share buybacks(e) Completed previously announced acquisitions of Crescent Pass Energy and East Texas assets Combined with Oaktree Working Interest Acquisition, offsets ~2 years of declines(f) Next LVL Milestones The Company has retired a total of 165 operated wells, year-to-date and is on track to meet or exceed Diversified's stated goal of retiring 200 wells within its Appalachian footprint in 2024 Next LVL Energy completed 233 well retirements through September 2024, including 68 wells associated with orphan wells and third-party operators Rusty Hutson, Jr., CEO of Diversified, commented: "Our results this quarter demonstrate the underlying strength of our business to deliver consistent cash flow and our commitment to operational excellence.

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) chief executive Rusty Hutson highlighted the strength of the business in delivering consistent cash flow and shareholder returns. “Year-to-date, we have announced $85 million in dividend payments, retired $154 million in outstanding debt principal, and executed over $20 million in share repurchases,” Hutson said in today's results statement for its third quarter.

Investors interested in DEC should wait for a better entry point, considering the downward revision in its third-quarter earnings estimate and dismal share price performance.

Diversified Energy Company PLC (LSE:DEC, NYSE:DEC) told investors it has completed its acquisition of operated natural gas assets in East Texas, for a gross headline figure of $69 million. The net price, after adjustments, was confirmed by the company as $49 million.

One should refrain from investing in DEC right now, considering its dismal share price performance year to date. Those who own it may continue to do so.