- Oil and gas company Diversified Gas & Oil said it would maintain its dividend despite the backdrop of weaker energy prices.

The company declared a first-quarter of 3.50 cents a share, consistent with the final 2019 dividend.

For the quarter ended 31 March 2020, first-quarter net daily production was maintained at 94K barrels of oil equivalent per day and adjusted earnings (EBITDA) was $78m, unchanged from the fourth quarter, supported by an average first-quarter natural gas hedge price of $2.73m n British thermal units.

First-quarter total unit cash expenses fell 22% to $6.98 Boe on-year.

'While oil makes up just 1% of our production, dramatically lower oil prices combined with a fundamentally changed outlook for oil has shale oil developers, particularly within the Permian Basin, moving quickly to significantly reduce spending on new shale oil wells that, as a byproduct, also produce large amounts of associated gas,' the company said.

'This behavioral shift is expected to therefore reduce the supply-side of natural gas while demand remains stable despite the ongoing pandemic, benefiting from continued transition from coal to natural gas-fired electricity,' it added.

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