RCS - Diversified Energy - Diversified Announces Contract With LNG Facility

Diversified EnergyAnnouncement

23/10/2024 07:00

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RNS Number : 2071J  Diversified Energy Company PLC  23 October 2024

 

October 23, 2024

 

 

 Diversified Energy Company PLC

("Diversified" or the "Company")

 

 Diversified Announces Natural Gas Supply Contract with Major Gulf Coast LNG
Facility

 

Represents an Additional Option to Reduce Commodity Price Risk and Enhance
Margins

 

Continuing to Add to 2025-2027 Natural Gas Hedges Advantageously

 

Diversified Energy Company PLC (LSE:DEC; NYSE:DEC) ("Diversified" or the
"Company") is pleased to announce the execution of a supply agreement with a
major Gulf Coast LNG facility to provide natural gas to export. Under the
terms of the agreement, Diversified will provide approximately 40 Bcf of
natural gas under a fixed pricing construct indexed to Gulf Coast pricing for
a period of three years, beginning in November 2024.

 

Fueled by a vision to supply clean American energy to the world, this
significant contract collaboration encompasses the commitment to ensure energy
security for global trading partners who are facing supply disruptions,
geopolitical tensions, rising regional demands, and changing consumption
patterns.

 

Additionally, the Company has been able to strategically take advantage of the
recent strength of the natural gas price curve to add to its multiple-year
hedge portfolio in 2025 through 2027, with an average NYMEX hedge price of
approximately $3.45 per MMBtu. The Company will provide additional disclosures
and an updated hedging schedule with its Third Quarter 2024 Trading Statement.

 

Commenting on the Agreement & Hedging Program, CEO Rusty Hutson, Jr. said:

 

"This supply agreement to a Gulf Coast LNG export facility is a great example
of the market's recognition of Diversified's reliable natural gas production
and operational efficiency while providing another lever for the Company to
enhance margins and deliver consistent cash flows. In line with the Company's
strategy to reduce commodity price risk, we believe this agreement, along with
tactically adding to our 2025-2027 hedge position during the recent natural
gas price strength, will help us to provide consistent, robust cash margins.
The agreement not only reflects the critical need and strong global demand for
natural gas but also the importance natural gas plays in powering global
economies for decades to come. We look forward to advancing our relationships
with Gulf Coast LNG export facilities that shares our commitment to building a
future of energy abundance, affordability, and security."

 

 

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.

 

Forward-Looking Statements

 

This announcement contains forward-looking statements (within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995). These
forward-looking statements, which contain the words "anticipate", "believe",
"intend", "estimate", "expect", "may", "will", "seek", "continue", "aim",
"target", "projected", "plan", "goal", "achieve", "opportunity" and words of
similar meaning, reflect the Company's beliefs and expectations and are based
on numerous assumptions regarding the Company's present and future business
strategies and the environment the Company will operate in and are subject to
risks and uncertainties that may cause actual results to differ materially. No
representation is made that any of these statements or forecasts will come to
pass or that any forecast results will be achieved.  Forward-looking
statements involve inherent known and unknown risks, uncertainties and
contingencies because they relate to events and depend on circumstances that
may or may not occur in the future and may cause the actual results,
performance or achievements of the Company to be materially different from
those expressed or implied by such forward-looking statements. Many of these
risks and uncertainties relate to factors that are beyond the Company's
ability to control or estimate precisely, including the risk factors described
in the "Risk Factors" section in the Company's Annual Report and Form 20-F for
the year ended December 31, 2023, filed with the United States Securities and
Exchange Commission. Forward-looking statements speak only as of their date
and neither the Company nor any of its directors, officers, employees, agents,
affiliates or advisers expressly disclaim any obligation to supplement, amend,
update or revise any of the forward-looking statements made herein, except
where it would be required to do so under applicable law. As a result, you are
cautioned not to place undue reliance on such forward-looking statements.

 

 

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