Diversified Gas & Oil PLC - Final Results for the Year Ended 31 December 2017

Posted by OilVoice Press - OilVoice


Diversified Gas & Oil PLC ("DGO"), a leading independent US-based gas and oil producer focused on the Appalachian Basin, is pleased to announce the publication of its annual results for the year ended 31 December 2017.


  • Completion of three accretive acquisitions totalling $89 million
  • Total revenue up 144% to $41.8 million (2016: $17.1 million)
  • Adjusted EBITDA up 308% to $17.5 million (2016: $4.3 million)
  • Strong 2H17 EBITDA margins over 40%
  • Balance sheet strengthened by equity proceeds and low leverage
  • 2H17 Lease Operating Expense $6.10/BOE (down 36% vs 2016 average)(a)
  • Final dividend for 2017 of 3.45 cents per share. Total dividend for the year of 5.44 cents per share, a 173% increase on FY2016

Post-Period Highlights:

  • Completion of materially transformative acquisitions of Alliance Petroleum ($95 million) and conventional assets from CNX Resources ($85 million)
  • Net daily production up to 28 MBOE, a 170% increase from year-end 2017
  • Transformation of capital structure to strengthen balance sheet via $189 million equity raise and refinancing of debt. Leverage currently stands at ~1.2x
  • Moved to a quarterly dividend policy
  • 2H17 dividend goes ex-div in 10 May 2018 and payable on 31 May 2018

 (a) Lease Operating Expense excludes uncontrollable G&T (gathering and transportation) and production taxes.

Commenting on the results, CEO Rusty Hutson said:

“Our first year as a public company can be characterised as one of remarkable success, transformation and progress.  We delivered everything we said we would do at the time of our admission to AIM in terms of growing production through acquisition and subsequently provided the Company with robust production and increasing cashflow that enables us to return cash to our shareholders as a reliable source of income through our dividend policy.

The current financial year has already delivered further material growth with the recent completion of two transformative acquisitions that increase our daily net production to c.28,000 boepd.  As a result, Diversified Gas & Oil is now the largest producer on AIM.  These acquisitions represent a material step-change in our production profile and cashflow generation, and have enabled us to reduce both the corporate and operating costs of the Company as we capitalise on the synergies provided by our expanded footprint.

Our strategic focus remains unchanged and we will continue to extract maximum value from our extensive portfolio whilst also considering the many complementary opportunities that we continue to see within our pipeline. We have successfully built a very solid growth platform and look forward to the future with confidence.”

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ResultsDiversified Gas & OilDGOUnited StatesOilgasUSAppalachian Basin

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