Diversified Energy Company PLC DEC has entered into a three-year liquefied natural gas (LNG) supply agreement with a well-known Gulf Coast LNG export facility, signifying a major step toward global energy security. The supply contract, set to begin in November 2024, includes the provision of supplying 40 billion cubic feet of natural gas and will take place under a fixed pricing strategy indexed to rates in the Gulf Coast. The deal highlights DEC’s dedication to ensuring energy security for companies globally, addressing problems like geopolitical tensions, supply disruptions, rising demands and changing patterns of consumers.
In addition to this contract, DEC is taking advantage of the constructive natural gas price trend to support its hedge portfolio from 2025 through 2027. Targeting an average NYMEX hedge price of approximately $3.45 per MMBtu(Metric Million British Thermal Unit), the company aims to enhance margins and secure consistent cash flows. The LNG supply contract aligns with DEC’s efforts to reduce commodity price risk and achieve operational stability.
According to DEC’s CEO, the LNG supply contract validates the company’s market recognition as a reliable natural gas producer. The partnership not only reflects the growing need and global demand for natural gas but also projects its importance in the global economies for years to come. The company plans to build a strong relationship with Gulf Coast LNG export facilities to supply affordable and secure energy.
Birmingham-based Diversified Energy is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. Currently, DEC has a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might look at some better-ranked stocks like Archrock, Inc. AROC, Nine Energy Service, Inc. NINE and Valaris Limited VAL.While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy and Valaris each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in the United States, Archrock is a provider of natural gas contract compression services and supplier of aftermarket services of compression equipment. The Zacks Consensus Estimate for AROC's 2024 earnings indicates 59.42% year-over-year growth.
Nine Energy Service, Inc. provides onshore completion and production services for unconventional oil and gas resource development. NINE’s expected EPS (earnings per share) growth rate for the current quarter is 23.08%, which compares favorably with the industry's growth rate of 2.90%.
London-based Valaris Limited provides offshore drilling services across all water depths and geographies. The Zacks Consensus Estimate for VAL's 2024 earnings indicates 290.18% year-over-year growth.
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