Diversified Energy Co PLC on Friday reported on the progress of its ongoing share buyback programme.
The Alabama, US-based oil and gas production company has so far repurchased 989,262 shares of 20 pence each since launching its buyback programme on June 27.
In accordance with approval given at last year’s annual general meeting, the company is entitled to repurchase up to 4.9 million shares for a maximum total of £97.4 million.
Diversified Energy said it hopes the programme will allow it to benefit from capital allocation opportunities, and will enable accretive acquisitions in the future.
It said it is ‘of the view that the shares are trading at a substantial discount to net asset value and [the buyback] is an appropriate use of the company’s cash resources’.
Diversified Energy shares were down 2.1% at 967.00 in London on Friday morning.
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