on Diversified Energy Company PLC (LON:DEC)
Diversified Energy Secures LNG Supply Agreement with Gulf Coast Facility
Diversified Energy Company PLC has announced a new supply contract with a major Gulf Coast LNG facility. Starting in November 2024, Diversified will supply around 40 billion cubic feet of natural gas over three years. This agreement uses fixed pricing indexed to Gulf Coast rates, providing a stable pricing structure amid fluctuating market conditions.
The contract aligns with the company's aim to reduce commodity price risk, adding to its natural gas hedge portfolio for 2025-2027 at an average NYMEX price of $3.45 per MMBtu. Diversified's CEO, Rusty Hutson, Jr., emphasized the deal's role in supporting consistent cash flow and margins while underscoring natural gas' importance in global energy supply.
The company plans to disclose more information in their Third Quarter 2024 Trading Statement. This development highlights Diversified's commitment to ensuring energy security and enhancing its market position through strategic partnerships.
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