Diversified Energy delivers 'solid' Q1 performance

9th May 2024 08:12

(Sharecast News) - Oil production company Diversified Energy reported "solid" Q1 results on Thursday as it said ongoing cost-cutting efforts were already paying off.

Diversified Energy said Q1 production hit 121,000 barrels of oil equivalent per day, while its exit rate reached 124,000 boepd, meaning production was "essentially flat" quarter-on-quarter.

Operating cash flow came to $107.0m, net losses were $15.0m, and adjusted underlying earnings amounted to $102.0m.

Diversified Energy added that operating cash costs per unit were cut by approximately 7% quarter-on-quarter, down to $10.10 per barrel equivalent.

"Building a portfolio of high-performing, mature producing assets and optimising the cost structure has been the foundation of our strategic vision since inception. The company's ability to continue to deliver solid results, both operationally and financially, reinforces the success of this strategy," said chief executive Rusty Hutson.

"I am pleased that our ongoing focus on cost reduction opportunities has translated directly into a 7% sequential quarterly operating cost improvement, allowing us to effectively navigate the current natural gas market headwinds."

As of 1010 BST, Diversified Energy shares were down 1.85% at 1,112.99p.

Reporting by Iain Gilbert at Sharecast.com