April 5, 2024
Diversified Energy
Company PLC
("Diversified" or the "Company")
Update on Share Buyback
Programme
Diversified Energy Company PLC
(LSE:DEC; NYSE:DEC) announces an update regarding its share buyback
programme announced on June 27, 2023 (the "Programme").
Since the Company launched the
Programme on June 27, 2023, it has repurchased 989,262 shares of
20p each in the Company (the "Ordinary Shares") through the
Programme. In accordance with the approvals given at the Annual
General Meeting held May 2, 2023, and taking into account Ordinary
Shares already repurchased in connection with the Programme, the
Company therefore has the remaining authority to buy back up to
3,881,238 of the Ordinary Shares.
To facilitate the Programme,
Diversified has today entered into an engagement with Peel Hunt LLP
("Peel Hunt") pursuant to an engagement letter under which the
Company has issued an irrevocable instruction providing Peel Hunt
with the authority to repurchase Ordinary Shares in the Company
subject to certain agreed parameters. Purchases may continue during
any closed periods of the Company, and any purchases of shares made
during closed periods pursuant to the Programme shall be made
independently of and uninfluenced by the Company.
The Company intends to continue to
conduct the Programme concurrent with the following
parameters:
• The
maximum number of Shares repurchased shall not exceed 4,870,500
Ordinary Shares; and
• The total
consideration of Shares repurchased under the Programme shall not
exceed an aggregate market value of £97.4 million
The Programme is in line with the
Company's newly announced capital allocation framework which is
designed to increase flexibility to conduct a strategic and
regimented share repurchase program, while also providing for the
opportunity to make accretive acquisitions.
The purpose of the Programme is to
reduce the issued share capital of the Company. The Board believes
that this Programme will take advantage of a capital allocation
opportunity as the Board is of the view that the shares are trading
at a substantial discount to net asset value and is an appropriate
use of the Company's cash resources.
Diversified will continue to execute
the Programme on the London Stock Exchange within the limitations
of the shareholder authority granted at the annual general meeting
held on May 2, 2023 and any authority granted at any subsequent
annual general meeting and will continue to execute the Programme
within the parameters of the Market Abuse Regulation 596/2014/EU
and the Commission Delegated Regulation 2016/1052/EU (in each case,
as it forms part of UK law pursuant to the European Union
(Withdrawal) Act 2018) and Chapter 12 of the Financial Conduct
Authority's Listing Rules. The Company will hold as treasury shares
any Shares repurchased in accordance with the provisions of the
Companies Act 2006 and will cancel the Shares thereafter.
Diversified will make appropriate disclosures during the buyback
period of the number of Shares that the Company has
repurchased.
For further information, please
contact:
Diversified Energy Company PLC
|
+1
973 856 2757
|
Doug Kris
|
dkris@dgoc.com
|
Senior Vice President, Investor
Relations & Corporate Communications
|
www.div.energy
|
|
|
FTI
Consulting
|
dec@fticonsulting.com
|
U.S. & UK Financial Public
Relations
|
|
About Diversified Energy Company PLC
Diversified is a leading publicly
traded energy company focused on natural gas and liquids
production, transport, marketing, and well retirement. Through our
differentiated strategy, we acquire existing, long-life assets and
invest in them to improve environmental and operational performance
until retiring those assets in a safe and environmentally secure
manner. Recognized by ratings agencies and organizations for our
sustainability leadership, this solutions-oriented, stewardship
approach makes Diversified the Right Company at the Right Time to
responsibly produce energy, deliver reliable free cash flow, and
generate shareholder value.