Diversified Energy Inks Natural Gas Supply Contract with Gulf Coast LNG Facility
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Diversified Energy Company has executed a supply agreement with a major Gulf Coast LNG facility to provide natural gas to export.
Under the terms of the agreement, Diversified will provide approximately 40 Bcf of natural gas under a fixed pricing construct indexed to Gulf Coast pricing for a period of three years, beginning in November 2024.
Fueled by a vision to supply clean American energy to the world, this significant contract collaboration encompasses the commitment to ensure energy security for global trading partners who are facing supply disruptions, geopolitical tensions, rising regional demands, and changing consumption patterns.
“This supply agreement to a Gulf Coast LNG export facility is a great example of the market’s recognition of Diversified’s reliable natural gas production and operational efficiency while providing another lever for the company to enhance margins and deliver consistent cash flows. In line with the company’s strategy to reduce commodity price risk, we believe this agreement, along with tactically adding to our 2025-2027 hedge position during the recent natural gas price strength, will help us to provide consistent, robust cash margins,” said CEO Rusty Hutson, Jr.
“The agreement not only reflects the critical need and strong global demand for natural gas but also the importance natural gas plays in powering global economies for decades to come. We look forward to advancing our relationships with Gulf Coast LNG export facilities that shares our commitment to building a future of energy abundance, affordability, and security,” added Hutson.
Diversified Energy is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through its differentiated strategy, they acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for its sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the right company at the right time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.
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