Diversified Oil & Gas PLC confident of meeting full-year expectations; hikes
While many other companies have been suspending dividend payments, Diversified O&G has been cranking up the pay-out
() said the outlook for natural gas “is looking increasingly positive” after it put in a solid third-quarter performance.
The third-quarter adjusted underlying earnings (EBITDA) rose to US$75mln from US$68mln in the preceding quarter and US$64mln in the same quarter of 2019.
The US-based owner and operator of natural gas, natural gas liquids and oil wells and midstream assets declared a third-quarter dividend of 4.0 cents a share, up from the 3.75 cents paid in the second quarter.
The dividend is now 15% higher than it was before the coronavirus pandemic – a trend at odds with many publicly-listed companies.
“We are pleased to report another solid quarter as we continue to execute our proven and resilient business model, which remains differentiated in the current climate. Our integration of the assets acquired from Carbon and EQT is progressing nicely while the assets perform in line with our expectations,” said Rusty Hutson, the chief executive officer of Diversified Oil & Gas in the trading update.
“Holistically, across all of our conventional and unconventional assets, the effectiveness of our operating methods is further evidenced by an exceptionally low ~6% corporate decline rate,” he added.
“We remain on track to meet full-year expectations and are confident that we will end the year with a strong financial and operational foundation from which we can deliver more growth next year and beyond,” Hutson declared.
The FTSE 250 company’s shares were up 2.25% at 109.00p in early deals.
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