Diversified Energy Company PLC has entered into a three-year agreement to supply roughly 40 billion cubic feet of natural gas to a significant Gulf Coast liquefied natural gas export facility. This deal is scheduled to commence in November 2024 and features a fixed pricing model linked to Gulf Coast benchmarks.
This move aligns with the company’s broader strategy to deliver clean American energy to international partners, particularly those facing supply challenges or rising demand. The agreement also reflects Diversified’s ongoing commitment to enhancing energy security, a priority in today’s landscape of geopolitical uncertainty and changing consumption trends.
Alongside this supply deal, Diversified has capitalised on current market conditions to expand its hedge portfolio for 2025 through 2027. The company has secured an average hedge price of $3.45 per million British thermal units, benchmarked against the New York Mercantile Exchange. Further details on this strategy are expected to be shared in the company’s Third Quarter 2024 Trading Statement.
CEO Rusty Hutson, Jr. expressed his thoughts on these developments, emphasising that the agreement is a testament to Diversified’s consistent production and operational success. The combination of the supply contract and expanded hedging is viewed as a way to improve profitability and maintain stable cash flows. He also reiterated the importance of natural gas in supporting economic growth and expressed optimism about continuing to work with LNG facilities that prioritise energy security, affordability, and abundance.
Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.
