Diversified Energy shares rose 0.7% to 125.7p in early morning trading on Monday after the group reported an adjusted EBITDA growth of 48% to $224 million in HY1 2022 compared to $151 million in HY1 2021.
Diversified Energy also confirmed a cash margin of 48% across the HY1 financial period.
The firm highlighted a net loss of $935 million, including $1.2 billion pre-tax in non-cash hedge valuation losses.
The energy group confirmed a free cash flow yield of 22%, alongside a leverage ratio of 2.2x with an adjusted net debt of $1.1 billion and $469 million in liquidity.
The company further mentioned a completed $970 million in Asset Backed Securities at a blended fixed rate of 5.3%.
Operations in HY1 2022
Diversified Energy announced a selection of operational highlights, including a record average net daily production of 136 MBoepd, representing a 29% climb against 106 MBoepd the last year.
The energy producer also confirmed a closed $60 million in complementary Central Region upstream and midstream acquisitions, and a recently announced $240 million upstream acquisition from ConocoPhillips in the Central Region.
“During first half of 2022, we continued to expand our successes by delivering on a number of key strategic initiatives in line with our long-term growth strategy,” said Diversified Energy CEO Rusty Hutson Jr.
“Our recent accretive acquisition of low decline, high margin upstream assets complements our existing Central Region operations, allowing us to build scale, improve margins and harvest synergies.”
“In Appalachia, our acquisition and vertical integration of multiple plugging companies expands our asset retirement programme to 15 plugging rigs and enables us to achieve our target of plugging 200 wells per year, while also reducing our effective retirement costs as we earn revenue by retiring wells for others.”
Dividend
Diversified Energy confirmed a $72 million dividend, amounting to a HY1 2022 dividend of 4.2c per share compared to 4c per share the last year.
“We remain committed to tangible shareholder returns, and are delighted to once again declare an additional $0.0425 dividend of the second quarter, which will add $36 million to the more than $72 million we already have paid so far this year,” said Hutson Jr.
“Our balance sheet remains healthy as we continue into the second half of 2022 with ample Liquidity, cash generation and financing capacity to fund further complementary growth opportunities.”