Diversified Gas and Oil posts record production levels
Diversified Gas and Oil (LON:DGOC) released its full-year results for 2020 on Monday as chief executive Rusty Hutson revealed his delight at the group’s resilience.
Adjusted earnings increased by 1% to $301mn for the year, helped by hedge cash settlements of $145m, which offset lower gas prices during 2020.
Total revenue, including the hedge cash settlements, came to $533m, an 8% rise on 2019’s figure.
Diversified Gas and Oil confirmed a net loss of $23m, a swing from $99m in net income the year before.
The oil company posted record production levels, as its exit rate for 2020 came in at around 100,000 barrels per day. This is 18% above the volume recorded at the end of 2019.
Diversified Oil and Gas proposed a final quarterly dividend of $0.04 per share, bringing the full-year 2020 dividend to $0.1525 per share, 10% higher than 2019 ($0.1392 per share), supported by accretive growth of its low-decline, long-life assets.
Commenting on the results, CEO Rusty Hutson, Jr. said:
“I am exceptionally pleased with our results in 2020 as they reflect the resilience of our business model and its proven ability to consistently deliver shareholder value and returns, even in the most challenging of markets. Our commitment to value-accretive growth, operational excellence, cost discipline, and risk mitigation drove the Group’s solid performance through turbulent times. Our long-standing strategy of focusing on low-risk assets and reliable cash flows position DGO for further growth, and enables us to maintain our firm commitment to shareholder returns, evidenced by the increase in our per-share dividend, which we raised twice, or 14%, during the year.”
“With a business model grounded in asset and environmental stewardship, we made significant strides in developing plans and adopting disclosure frameworks aimed at improving our environmental footprint. Additionally, we strengthened our track record of accretive growth with the successful acquisitions of both upstream and midstream assets, contributing to a consistent, strong cash margin and enlarging our portfolio of Smarter Asset Management opportunities on a base of assets with an exceptionally low corporate decline rate of ~7%. Our commitment to acquire low-decline assets enables us to replace production declines with approximately 10% of our Adjusted EBITDA while meeting our operating and ESG commitments, reducing our debt and making consistent quarterly dividend payments to shareholders.”