REG - Diversified Energy - Update on Share Buyback Programme

Diversified EnergyAnnouncement

05/04/2024 07:00

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RNS Number : 3892J  Diversified Energy Company PLC  05 April 2024

April 5, 2024

 

 Diversified Energy Company PLC

("Diversified" or the "Company")

 

Update on Share Buyback Programme

 

Diversified Energy Company PLC (LSE:DEC; NYSE:DEC) announces an update
regarding its share buyback programme announced on June 27, 2023 (the
"Programme").

 

Since the Company launched the Programme on June 27, 2023, it has repurchased
989,262 shares of 20p each in the Company (the "Ordinary Shares") through the
Programme. In accordance with the approvals given at the Annual General
Meeting held May 2, 2023, and taking into account Ordinary Shares already
repurchased in connection with the Programme, the Company therefore has the
remaining authority to buy back up to 3,881,238 of the Ordinary Shares.

 

To facilitate the Programme, Diversified has today entered into an engagement
with Peel Hunt LLP ("Peel Hunt") pursuant to an engagement letter under which
the Company has issued an irrevocable instruction providing Peel Hunt with the
authority to repurchase Ordinary Shares in the Company subject to certain
agreed parameters. Purchases may continue during any closed periods of the
Company, and any purchases of shares made during closed periods pursuant to
the Programme shall be made independently of and uninfluenced by the Company.

 

The Company intends to continue to conduct the Programme concurrent with the
following parameters:

•     The maximum number of Shares repurchased shall not exceed
4,870,500 Ordinary Shares; and

•     The total consideration of Shares repurchased under the Programme
shall not exceed an aggregate market value of £97.4 million

 

The Programme is in line with the Company's newly announced capital allocation
framework which is designed to increase flexibility to conduct a strategic and
regimented share repurchase program, while also providing for the opportunity
to make accretive acquisitions.

 

The purpose of the Programme is to reduce the issued share capital of the
Company. The Board believes that this Programme will take advantage of a
capital allocation opportunity as the Board is of the view that the shares are
trading at a substantial discount to net asset value and is an appropriate use
of the Company's cash resources.

 

Diversified will continue to execute the Programme on the London Stock
Exchange within the limitations of the shareholder authority granted at the
annual general meeting held on May 2, 2023 and any authority granted at any
subsequent annual general meeting and will continue to execute the Programme
within the parameters of the Market Abuse Regulation 596/2014/EU and the
Commission Delegated Regulation 2016/1052/EU (in each case, as it forms part
of UK law pursuant to the European Union (Withdrawal) Act 2018) and Chapter 12
of the Financial Conduct Authority's Listing Rules. The Company will hold as
treasury shares any Shares repurchased in accordance with the provisions of
the Companies Act 2006 and will cancel the Shares thereafter. Diversified will
make appropriate disclosures during the buyback period of the number of Shares
that the Company has repurchased.

 

For further information, please contact:

 Diversified Energy Company PLC                                             +1 973 856 2757
 Doug Kris                                                                 dkris@dgoc.com
 Senior Vice President, Investor Relations & Corporate Communications      www.div.energy

 FTI Consulting                                                            dec@fticonsulting.com
 U.S. & UK Financial Public Relations

 

About Diversified Energy Company PLC

Diversified is a leading publicly traded energy company focused on natural gas
and liquids production, transport, marketing, and well retirement. Through our
differentiated strategy, we acquire existing, long-life assets and invest in
them to improve environmental and operational performance until retiring those
assets in a safe and environmentally secure manner. Recognized by ratings
agencies and organizations for our sustainability leadership, this
solutions-oriented, stewardship approach makes Diversified the Right Company
at the Right Time to responsibly produce energy, deliver reliable free cash
flow, and generate shareholder value.

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