With many of Diversified Gas & Oil's (DGO) Appalachian focussed peers struggling following poor returns, DGO begins 2020 with approximately 85% of its natural gas production hedged at a price of US$2.69/mmbtu, protecting cash flows, the dividend and the Company's ability to reduce debt. Leverage from DGO's predictable, long-life, low-decline production, allows the Company to tailor its mix of derivatives, protecting downside, whilst providing for some exposure to the upside. With no end in sight ....
25 Feb 2020
Cenkos: Diversified Gas & Oil Plc -- A safe haven in a downturn
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Cenkos: Diversified Gas & Oil Plc -- A safe haven in a downturn
Diversified Energy Company PLC (DEC:LON) | 946 0 0.0% | Mkt Cap: 449.8m
- Published:
25 Feb 2020 -
Author:
James McCormack -
Pages:
7
With many of Diversified Gas & Oil's (DGO) Appalachian focussed peers struggling following poor returns, DGO begins 2020 with approximately 85% of its natural gas production hedged at a price of US$2.69/mmbtu, protecting cash flows, the dividend and the Company's ability to reduce debt. Leverage from DGO's predictable, long-life, low-decline production, allows the Company to tailor its mix of derivatives, protecting downside, whilst providing for some exposure to the upside. With no end in sight ....