Core Insights - Diversified Energy Company reported strong operational and financial results for the year ended December 31, 2024, achieving approximately 50% cash margins for the seventh consecutive year [1][10] - The company generated over $50 million in cash flow from growth initiatives and returned over $105 million to shareholders, including $21 million in share buybacks [1][6] Financial Performance - Full-year 2024 average production was 791 MMcfepd (132 Mboepd), with a 4Q24 average production of 843 MMcfepd (141 Mboepd) and a December 2024 exit rate of 864 MMcfepd (144 Mboepd), reflecting an 11% increase from December 2023 [6][7][8] - Adjusted EBITDA for 2024 was between $470 million and $475 million, with an Adjusted Free Cash Flow of $210 million to $215 million, resulting in an Adjusted EBITDA Margin of 50% and a TTM Adjusted Free Cash Flow Yield of 33% [6][10] - Total revenue for 2024, including settled hedges, was $3.21/Mcfe ($19.28/Boe), with an Adjusted Operating Cost per Unit of $1.70/Mcfe ($10.22/Boe), showing a minimal 1% change compared to the previous year [6][12][11] Strategic Initiatives - The company executed over $585 million in strategic acquisitions during 2024, including the announced acquisitions of Summit Natural Resources and Maverick Natural Resources, which are expected to close in early 2025 [4][17][20] - Diversified's Smarter Asset Management approach has positively impacted production optimization and operational efficiency, positioning the company for robust cash flows in 2025 [9][10] Debt Management and Shareholder Returns - The company retired over $200 million in debt principal through amortizing debt payments, demonstrating a commitment to financial prudence [6][4] - In addition to share buybacks, the company returned a total of $105 million to shareholders, reflecting a strong capital allocation strategy [1][6] Environmental and Operational Updates - Diversified exceeded its well retirement commitments by retiring 202 operated wells in 2024, contributing to its sustainability goals [15][16] - The company continues to focus on responsible asset management and environmental performance, enhancing its reputation in the industry [24]
Diversified Energy’s Unique Strategy Produces Reliable Cash Flow and Strong Full Year 2024 Results