Diversified Energy increases dividend as earnings rise

Diversified Energy increased its dividend as the gas and oil company reported a 3% increase in first-half earnings.

Hedged adjusted earnings before interest, tax, depreciation and amortisation rose to $151m from $146m in the six months to the end of June from a year earlier.

The FTSE 250 group had a net loss of $84m including a $278m non-cash mark-to-market valuation loss. A year earlier the equivalent net income was $18m.

Diversified Energy, which owns assets in the US, increased its interim dividend to 4 cents a share from 3.75 cents a share a year earlier.

In May the company announced the $135m acquisition of mainly natural gas assets in Louisiana in April and changed its name from Diversified Gas & Oil in July. The deal added to its operations in the Appalachian region.

Rusty Hutson, chief executive, said: "I am thrilled with the progress we made in this active first half of 2021, successfully delivering on a number of key strategic initiatives in line with our long-term growth strategy.

"Our entry into a new operating region complements our continued focus in Appalachia and introduces a geographic diversity capable of providing improved margins from higher realised pricing and a significant new runway for further value accretive and synergistic opportunities."

Diversified Energy shares fell 1.5% to 104p at 08:37 BST and are down 9% so far in 2021.