BIRMINGHAM, AL - Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC), a publicly traded energy company, has declared an interim dividend of $0.29 per share for the second quarter of 2024, which ended on June 30, 2024. The company announced that shareholders on record as of November 29, 2024, will be eligible for the dividend, with payment scheduled for December 27, 2024.
The dividend will be distributed in U.S. dollars, but Diversified Energy also offers an option for shareholders to receive payments in sterling. To take advantage of this option, shareholders must submit a currency election form by December 6, 2024. The sterling value of the dividend will be determined and announced approximately two weeks before the payment date.
Diversified Energy's approach focuses on the acquisition and enhancement of long-life energy assets, with an emphasis on natural gas and liquids production, transportation, marketing, and responsible retirement of assets. The company has been recognized for its sustainability efforts and claims to deliver reliable cash flow and value for its shareholders.
This announcement is made in accordance with the UK Market Abuse Regulation (UK MAR), which is part of UK domestic law following the European Union (Withdrawal) Act 2018. The company's commitment to environmental stewardship and operational performance is positioned as a response to the current energy market demands.
Shareholders interested in the currency election for the upcoming dividend payment can find the necessary forms and information on Diversified Energy's website. The company's investor relations and corporate communications are handled by Senior Vice President Doug Kris, who can be contacted for further information.
This news article is based on a press release statement from Diversified Energy Company PLC.
In other recent news, Diversified Energy Company has been the subject of attention from Truist Securities, which has increased its price target for the company to $20, maintaining a Buy rating. This revised target is based on updated financial forecasts for the years 2024 through 2026, with a particular emphasis on an estimated 2025 EBITDAX of $420 million. In addition to this, Diversified Energy has expanded its operations in Texas through a $106 million acquisition of natural gas properties from Crescent Pass Energy.
This acquisition, expected to conclude in the third quarter of 2024, will add 38 million cubic feet equivalent per day of production. The purchase is funded through the issuance of new U.S. dollar-denominated ordinary shares and a senior secured bank facility. In further developments, Truist Securities has initiated coverage on Diversified Energy, citing its strong performance and well-hedged business strategy.
Diversified Energy is also set to join the Russell 2000 Index, a move that is expected to increase the company's visibility in the U.S. investment community. These are among the recent developments concerning Diversified Energy, as it continues to make strides in its sector. The company's growth strategy, strong performance, and recent acquisitions have made it a focal point for analysts and investors alike.
InvestingPro Insights
Diversified Energy Company PLC (NYSE:DEC) has not only committed to a consistent dividend policy but also boasts a noteworthy track record of dividend payments. With a dividend yield of 5.89% as of the latest data, the company stands out for its significant return to shareholders. This is underscored by the InvestingPro Tip that Diversified Energy has raised its dividend for 7 consecutive years and has maintained dividend payments for 8 consecutive years, signaling a strong focus on shareholder value.
From a financial performance standpoint, Diversified Energy's market capitalization is currently at $634.21 million, with a very low price-to-earnings (P/E) ratio of 0.85 for the last twelve months as of Q4 2023. This could indicate that the stock is undervalued relative to its earnings. Furthermore, the company's gross profit margin stands at a robust 53.01%, reflecting efficient operations and cost management.
Investors should note that while the company has experienced a large price uptick over the last six months, with a 21.24% total return, it has also seen a decline in revenue growth during the same period, with a quarterly decrease of 62.91% in Q4 2023. These contrasting figures highlight the importance of considering both the stock's recent performance and fundamental financial health when making investment decisions.
For those seeking additional insights, InvestingPro offers more tips on Diversified Energy, which can be found at https://www.investing.com/pro/DEC. These tips can provide investors with a broader perspective on the company's financial outlook and market position.
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