Business
First Quarter 2023 Trading Statement
First Quarter 2023 Trading Statement.
About this update from Diversified Energy Company
[{"type":"text","content":"\n\n9 May 2023\n \n Diversified Energy Company PLC\n(\"Diversified\" or the \"Company\")\n \nFirst Quarter 2023 Trading Statement\n \nDiversified Energy Company PLC (LSE:DEC) is pleased to announce it is trading in line with expectations and provided the following operations and trading update for the quarter ended 31 March 2023.\n \nDelivering Reliable Results\n \n• Recorded average 1Q23 production of 139 Mboepd (833 MMcfepd)\n◦ Exit rate of 145 Mboepd (872 MMcfepd)\n◦ Includes 15% liquids; Up 30% since entering Central Region\n• Net income of ~$400 million inclusive of a ~$365 million gain on tax-effected, non-cash unsettled derivative fair value adjustments\n• Achieved 1Q23 Adjusted EBITDA of ~$150 million(a)\n• Realised 54% Cash Margin(b) benefiting from lower expenses\n• Annualized Free Cash Flow Yield(c) of ~37% (1Q23 of ~9%)\n• Total Unit Cash Expense(e) of $10.46/Boe ($1.74/Mcfe); ~6% improvement compared to 4Q22\n• 2.3x Net Debt / Adjusted EBITDA leverage ratio(f) and ~$110 million of liquidity(g)\n \nExecuting Strategic Objectives\n• Declared 1Q23 interim dividend of 4.375 cents per share, consistent with 4Q22; up 3% vs. 1Q22\n• Completed Tanos II asset acquisition\n• Maintained favourable natural gas hedge position; 2023 average floor pricing 35% above strip for remainder of 2023(d)\n• Completed ~$6 million in non-core undeveloped acreage sales across the Company's operating footprint\n \nCreating Value Through Stewardship\n• Issued 2022 Sustainability Report detailing emissions reductions, safety wins and community investment\n• Supported energy transition through surface acreage transaction allowing solar field development\n• Tanos assets recently acquired achieved project Canary Gold Rating\n• Completed pneumatic device conversion on 22 pads through March 2023\n• Next LVL Energy completed 56 well retirements through March 2023, on track for 2...