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DGOC grows production as asset integration continues

The acquisitive, America focused gas and oil firm has quickly built out a substantial production base
oil and gas operations
The production rate exceeded 90,000 boepd in April, including the most recently added assets

Diversified Gas & Oil PLC (LON:DGOC) reported first quarter production at 69,000 barrels of oil equivalent per day (boepd), in-line with rates at the end of last year.

The company, in a statement, added that production in April exceeded 70,000 boepd and upon factoring in the addition of the acquired HG Energy II assets the rate jumps to over 90,000 boepd.

It added that the integration of the HG Energy assets continues in-line with expectations.

READ: Diversified Gas & Oil to kick-off share buyback programme

For the first quarter, the company said it had adjusted earnings (EBITDA) of US$62mln and margins, at 55%, were consistent with the performance at the end of 2018.

“The production performance through the first quarter demonstrates the effectiveness of our SWM programme, and we continue to see plenty of opportunities within our portfolio to organically grow production through various field and well-level initiatives,” said Rusty Hutson, DGOC chief executive.

He added: “With strong cash flows from our producing and midstream assets and current liquidity of over US$330mln that increases monthly as we utilize our free cash flow to paydown our revolver balance, we are well positioned to respond to market dynamics and redeploy our liquidity into the best opportunities for creating long-term shareholder value."

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