HOUSTON - Diversified Energy Company PLC (LSE:LON:DEC; NYSE:DEC) has secured a three-year agreement to supply approximately 40 billion cubic feet (Bcf) of natural gas to a major Gulf Coast liquefied natural gas (LNG) export facility, starting in November 2024. The deal establishes a fixed pricing structure tied to Gulf Coast benchmarks.
The arrangement aligns with Diversified's strategy to provide clean American energy globally, especially to partners grappling with supply interruptions and increasing demand. It also reflects the company's efforts to bolster energy security during a time marked by geopolitical strife and shifting consumption patterns.
In addition to the supply agreement, Diversified has leveraged recent market conditions to expand its hedge portfolio for the years 2025 to 2027. The company secured an average hedge price of $3.45 per million British thermal units (MMBtu) against the New York Mercantile Exchange (NYMEX). Details on this hedging strategy will be disclosed in the Third Quarter 2024 Trading Statement.
CEO Rusty Hutson, Jr. commented on the developments, emphasizing the recognition of Diversified's reliable production and operational efficiency. The supply contract and hedging additions are seen as mechanisms to enhance margins and ensure steady cash flows. Hutson highlighted the critical role of natural gas in powering economies and expressed enthusiasm for advancing partnerships with LNG facilities committed to energy abundance, affordability, and security.
This news is based on a press release statement from Diversified Energy Company PLC.
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