Curated News
By: NewsRamp Editorial Staff
May 13, 2024
Diversified Energy Achieves Strong Q1 Results with Robust Production and Financial Performance
TLDR
- Diversified Energy recorded an average production of 723 MMcfepd and achieved 1Q24 Adjusted EBITDA of $102 million, giving them a strong competitive advantage in the market.
- The company's focus on cost reduction opportunities translated into a 7% sequential quarterly operating cost improvement, contributing to the strong financial performance.
- Diversified Energy's ability to unlock value and generate meaningful cash flow makes a positive impact on the financial market and contributes to a better economic future.
- The commencement of operations at the Black Bear processing facility marks a strategic milestone for the company, offering potential upside through third-party gas processing and acquisitions.
Impact - Why it Matters
The strong performance of Diversified Energy Company, as announced by CEO Rusty Hutson Jr., demonstrates the company's ability to generate meaningful cash flow and unlock value. This news is significant as it highlights the strategic focus on cost reduction opportunities, resulting in solid operational and financial results. The commencement of operations at the Black Bear processing facility also signifies a strategic milestone for the company, offering potential upside through additional margin creation and accretive acquisitions.
Summary
Diversified Energy Company CEO Rusty Hutson Jr. announced the company's strong first quarter results, including robust production and financial performance. The company recorded an average production of 723 MMcfepd, with an exit rate of 742 MMcfepd. Notably, it achieved 1Q24 Adjusted EBITDA of $102 million and Free Cash Flow of $74 million. Hutson expressed satisfaction with the solid operational and financial results, attributing them to the company's strategic focus on cost reduction opportunities. Furthermore, the commencement of operations at the Black Bear processing facility marks a strategic milestone for the company, offering potential upside through the processing of third-party gas and accretive bolt-on acquisitions in the Cotton Valley and Haynesville region.
Source Statement
This curated news summary relied on this press release disributed by News Direct. Read the source press release here, Diversified Energy Achieves Strong Q1 Results with Robust Production and Financial Performance
