Diversified Energy Co PLC (LSE:DEC)
£ 13.37 -0.3 (-2.19%) Market Cap: 679.84 Mil Enterprise Value: 2.07 Bil PE Ratio: 6.23 PB Ratio: 1.52 GF Score: 78/100
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Half Year 2024 Diversified Energy Company PLC Earnings Call Transcript

Aug 15, 2024 / 01:00PM GMT
Release Date Price: £10.12 (-5.24%)

Key Points

Positve
  • Diversified Energy Co PLC (DEC) generated $121 million in free cash flow with a 38% free cash flow yield.
  • The company made $108 million in debt principal payments, aligning with their long-term strategy.
  • DEC paid $65 million in dividends and share repurchases in the first half of the year.
  • The company has maintained a 0% decline in production over the last three fiscal quarters, adjusted for acquisitions.
  • DEC has returned over $850 million to shareholders since its IPO, showcasing strong shareholder returns.
Negative
  • DEC continues to trade at a 37% discount to its peers, indicating potential undervaluation in the market.
  • The company faces challenges in maintaining production levels without significant acquisitions.
  • There is a reliance on federal contracts for well retirements, which have been delayed to the back end of 2024.
  • The volatility in natural gas prices poses a risk to future cash flow and profitability.
  • DEC's undeveloped acreage, while valuable, requires significant time and effort to monetize effectively.
Operator

Greetings, and welcome to the Diversified Energy 2024 interim results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Douglas Kris, Senior Vice President, Investor Relations and Corporate Communications. Thank you. Please go ahead.

Douglas Kris
Diversified Energy Company PLC - Vice President of IR

Good morning and welcome to our interim results conference call. Joining me here today are Rusty Hudson, our CEO; and Brad Gray, our CFO. For reference, we will make notes and comments around certain non-GAAP and non-IFRS financial measures. All of our disclosures around those are found in our earnings materials or in our earnings release on our website and also issued via the RNS service.

I'll now turn the call over to Rusty Hudson, our CEO. Rusty, please go ahead.

Robert Russell Hutson
Diversified Energy Company PLC - Chief Executive Officer, Co-Founder, Executive Director

Thank you, Doug. Thank you, moderator,

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