Diversified Gas & Oil plc – Shard Capital Initiation Note

3 March 2017

Diversified Gas and Oil PLC – Shard Capital Initiation Note
3rd March 2017

Diversified Gas & Oil (DGO) is a US onshore gas and oil production company which owns and operates a large portfolio of producing wells in the Appalachian Basin across Ohio, West Virginia and Pennsylvania. On 3 February 2017, the company gained admission to AIM raising gross proceeds of $50m. Up to this point the management had grown the business aggressively through a series of debt-financed acquisitions accumulating an extensive asset base of 7,500 wells and more than 1 million acres under lease. Now that DGO has achieved significant economies of scale, the group is in a strong position to de-leverage the balance sheet and generate significant free cash flow. This will enable the company to instigate a progressive dividend policy while retaining the flexibility to make further value accretive acquisitions.

Please click here to read Shard Capital’s initiation note.