Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

Diversified Gas & Oil Completes CNX Asset Purchase, Declares Dividend

3rd Apr 2018 12:04

LONDON (Alliance News) - Diversified Gas & Oil PLC, a US-based gas and oil producer in the Appalachian Basin, said Tuesday it has completed its acquisition of assets from CNX Gas Company LLC, and seperately declared a final dividend for 2017.

The sale of certain oil & gas leaseholds, wells, working interests, licences, related equipment and other assets will be with effect from January 1, 2018, and will total USD85 million.

With the acquisition, including assets purchased earlier this month from Alliance Petroleum, Diversified Gas & Oil estimates its total net working interest production now exceeds 28,000 barrels of oil equivalent per day, and its net working interest of proved, developed and producing reserves approximate 173 million barrels of oil equivalents per day.

Importantly, the company said, its borrowing base under the credit facility led by KeyBank National Association increases to USD200 million from its current USD140 million level, "providing the company significant liquidity to pursue additional acquisition opportunities without the need for additional equity capital and without exceeding its commitment to maintain a leverage profile".

Seperately, Diversified Gas & Oil said on Tuesday it will declare a final dividend for 2017 of 3.45 cents per share alongside the company's full year results due April 30. This will take its total payout for the year to 5.44 cents per share.

CEO Rusty Hutson said: "While 2017 was undoubtedly a remarkable year for DGO, the month of March 2018 has produced the most transformative catalysts to our business since admission to AIM. Over the past 30 days, we have nearly tripled our net daily production, more than tripled our PDP reserves and halved our cost of borrowing."

"Collectively, our two latest acquisitions combined with our syndicated credit facility create long-term value for shareholders and fulfil our commitment to a progressive per-share dividend. Importantly, our progress in 2018 and significant borrowing capacity under our credit facility places us in a position of financial strength to continue our pursuit of high-quality growth opportunities while maintaining our commitment to low leverage."

Shares in Diversified Gas & Oil were up 1.2% Tuesday at 86.00 pence each.


Related Shares:

DGOC.L
FTSE 100 Latest
Value8,809.74
Change53.53