Search Follow us

Diversified Gas & Oil (DGOC)

Business description

Diversified Gas & Oil is a conventional natural gas and oil producer with a main focus in the US onshore. The company possesses long-life, low operational cost, mature producing assets with slow decline profiles in the Appalachian region, in the states of Pennsylvania, West Virginia and Ohio.

Stock data

Market cap.£580.3m
Last close114.50p
High / Low (52 weeks)128.5p / 76.0p
Stock market listingLN
Forecast net debt (US$m)480.9
Forecast gearing ratio (%)94
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual(3)5.139.9
Relative *3.115.154.8

* % Relative to local index

Other companies in sector Show

88 Energy Activa Resources
ADX Energy Afren
African Petroleum Corporation AJ Lucas Group
Aminex Andes Energia
Antares Energy Athabasca Resources
AusTex Oil AWE
Azonto Petroleum Bankers Petroleum
Bitesize Briefing BNK Petroleum
Bowleven Bridge Energy
Buru Energy Cairn Energy
Canacol Energy Canadian Overseas Petroleum
Canoel International Energy Cap Energy
Carbon Energy Carnarvon Petroleum
CBM Asia Development Central Petroleum
Challenger Energy Coastal Energy
Columbus Energy Resources Cooper Energy
Core Laboratories Cue Energy
Denbury Resources DEO Petroleum
Deutsche Rohstoff Dragon Oil
Drillsearch Energy Egdon Resources
Elk Petroleum Energy XXI
Exillon Energy Exoma Energy
Falkland Oil & Gas Faroe Petroleum
Fastnet Oil & Gas Forum Energy
G3 Exploration Gasol
Genel Energy Genie Energy
Great Eastern Energy Corporation Greka Drilling
Gulf Keystone Petroleum Gulfsands Petroleum
Hawkley Oil & Gas Hellenic Petroleum
Hurricane Energy Hydrodec Group
IPB Petroleum Ithaca Energy
JKX Oil & Gas Karoon Gas
Kea Petroleum Kina Petroleum
Kreuz Holdings Lansdowne Oil & Gas
Leed Petroleum Leigh Creek Energy
LGO Energy Lion Energy
Liquefied Natural Gas Lochard Energy
Madagascar Oil Madalena Energy
MEC Resources Mediterranean Oil & Gas
MEO Australia Mosman Oil and Gas
Nautical Petroleum New Standard Energy
New Zealand Oil & Gas Nido Petroleum
Nighthawk Energy North Sea Energy
Northern Petroleum Norwest Energy
Otto Energy Pacific Rubiales
Parex Resources Petrel Energy
Petro Matad Petroceltic
Petromanas Energy Petrominerales
Po Valley Energy Premier Oil
President Energy Pura Vida Energy
Quadrise Fuels International Ramba Energy
Range Resources Real Energy
Real Energy Corporation Regal Petroleum
Renergen Rockhopper Exploration
SacOil Holdings Salamander Energy
SDX Energy Sefton Resources
Senex Energy Sequa Petroleum
ShaMaran Petroleum Simba Energy
SOCO International Solo Oil
Sound Energy Sound Oil
Sterling Energy Stratic Energy
Tethys Petroleum Touchstone Exploration
Tower Resources TransAtlantic Petroleum
TransGlobe Energy Valiant Petroleum
Vermilion Energy Victoria Oil & Gas
Wentworth Resources WestSide Corporation
Xcite Energy
Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2016A 17.1 26.5 32.5 34.3 4.3 12.2
2017A 41.8 23.2 4.7 5.8 25.5 25.7
2018E 230.8 120.5 52.2 6.7 22.0 6.4
2019E 447.8 254.1 142.0 14.8 10.0 3.6

Last updated on 21/11/2018

Investment summary

Diversified Gas & Oil (DGO) is a conventional natural gas and oil producer with its main focus in the US onshore. The company possesses long-life, low operational cost, mature producing assets with slow decline profiles in the Appalachian region. DGO has grown exponentially since listing on AIM in February 2017. The company’s acquisition-led strategy has enabled it to amass over 7.8m net acres in the US Appalachian Basin, and a 1P PDP 493mmboe net reserve base. Our base case valuation for DGO rises from 138.1p/share to 145.9p/share following the Core Appalachia acquisition.

Last updated on 29/11/2018

Industry outlook

DGO’s ability to extract residual returns from acquired mature production rests on the empowerment of production supervisors enabling them to extract maximum value, rather than volume, from their well stock. DGO’s ability to maximise shareholder returns will be driven by its proficiency in managing lease operating expense (LOE) and the deferment of abandonment costs through extended well life as production declines.

Last updated on 29/11/2018

Key management

Rusty Hutson , CEO
Eric Williams, CFO
Robert Post, Non-Executive Chairman
Bradley Gray , Finance Director & US COO

Company address

1100 Corporate Drive
Birmingham, Alabama
35242
United States
205-408-0909
View website