Diversified Energy Reports Solid First Quarter and Expansion of NGL Processing Capabilities

Diversified Energy Company PLC announced steady Q1 results for the period ending March 31, 2024, and provided an update on its Black Bear processing facility. The firm produced an average of 723 MMcfepd in the first quarter, maintaining a level comparable to the last quarter of 2023. Additionally, the company noted a net loss of $15 million due to non-cash items but highlighted a substantial $107 million in operating cash flow. Free cash flow reached $74 million with an Adjusted EBITDA of $102 million, demonstrating strong margins.

The Black Bear facility, located in DeSoto Parish, Louisiana, has undergone recent upgrades, increasing its processing capacity to approximately 120 Mmcfpd, pushing the anticipated margin improvement by about $9 million annually. This enhancement aligns with the company's strategy to integrate midstream activities and reduce third-party expenses, bolstering the company’s overall financial stability.

CEO Rusty Hutson, Jr. emphasized the strategic advancements in operational efficiency and the integration of the Black Bear facility, which are key components of the company's long-term strategy. Diversified Energy also reinforced its financial health by reporting a 20% reduction in debt compared to Q1 of the previous year and declared an interim dividend of $0.29 per share.

In further strategic developments, the acquisition of Oaktree Capital Management’s working interest is advancing as planned and is expected to close soon, which will potentially increase Diversified’s presence in U.S. Gulf Coast LNG markets.