(Clarifies the dividend has been cut when taking into account Diversified Energy’s share consolidation in 2023.)
Diversified Energy Co PLC on Thursday reported a decline in production amid a sharp fall in profit due to fair value adjustments.
The US-focused natural gas producer said net profit dived to $15.7 million in the first half of 2024 from $630.9 million a year prior.
Notably, it reported a loss on fair value adjustments of unsettled financial instruments of $80.1 million, swung from a gain of $760.9 million.
Average net daily natural gas production fell 12% to 746 million cubic feet equivalent per day from 852 million reported a year prior
The company declared a second quarter dividend of 29 US cents per share, compared to 4.38 cents a year before. However, Diversified last year conducted a share consolidation of 20 shares into 1, meaning the second quarter dividend effectively is down 67% from a year ago.
Chief Executive Officer Rusty Hutson Jr said ‘We remain committed to our balanced capital allocation framework, with the diversity and strength of our asset base providing a solid foundation for accretive growth and value creation for our shareholders, while maintaining our position as the ’right company at the right time’ to responsibly manage long-life, mature producing assets.’
Diversified Energy shares were 2.2% lower at 1,045.00 pence each on Thursday morning in London.
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