Diversified Energy says Q1 trading in line

Diversified Energy said it was trading in line with expectations after recording average first quarter production of 139 million barrels of oil per day.

Net income was $400m of a $365m gain on tax-effected, non-cash unsettled derivative fair value adjustments.

Chief executive Rusty Hutson said: "Concurrently and despite the challenging commodity price environment, we reduced per-unit expenses and increased our cash margins to approximately 54% thanks to our disciplined hedging strategy and greater liquids exposure."

"Having responsibly hedged over 85% in 2023, approximately 80% in 2024 and approximately 70% in 2025 of our natural gas production, we continue to opportunistically add to our hedge portfolio where the price curve is higher.”