2018 was a transformational year for Diversified Gas & Oil (DGO). The company completed four acquisitions during the financial year for approximately $1bn, and became the largest conventional gas producer in the Appalachian region, onshore US. DGO's production increased from 6.6kboed to approximately 70.0kboed as of January 2019, from c 60,000 gross wells. DGO has been active in consolidating acquired operations and finalising plugging & abandonment (P&A) agreements, giving stakeholders greater certainty of short- to mid-term decommissioning costs. The strategy remains consistent to produce stable cash flows, while supporting cash returns, which equate to an 8.8% dividend yield. Pricing drives our valuation down marginally from 163.6p/share to 162.7p/share (less than -1%), due to slightly lower EIA-sourced gas price assumptions (-1% in FY19 and -4% in FY20).Den vollständigen Artikel lesen ...
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