Diversified Energy Company PLC Media Response (8084O)
12 Octubre 2021 - 5:07AM
UK Regulatory
TIDMDEC
RNS Number : 8084O
Diversified Energy Company PLC
12 October 2021
12 October 2021
Diversified Energy Company PLC
("Diversified" or the "Company")
Media Response
Diversified Energy Company PLC (LSE: DEC) issues the following
response to an article published by Bloomberg.
Over the course of the last few months, the Company has engaged
in lengthy and transparent dialogue with the journalists to ensure
the article was factually correct and provided appropriate context
for their footage and assumptions. The Company believes the article
fails to reflect this extensive and constructive engagement, nor
does it reflect the positive environmental, social and economic
benefits stemming from the Company's investment into - and
stewardship of - its assets within communities in which the Company
operates.
The Company believes that aggregating producing wells and
tailoring operating programs designed to improve their performance
and emissions profile addresses a void in the industry whereby
wells often pass from one operator to another creating a 'churn'
effect, removing long-term accountability for asset integrity.
Without capable operators like Diversified, often less capable,
less financially stable or less accountable, operators acquire
assets from companies that are more focused on developing new
wells. As a consequence, mature wells sometimes fall into disrepair
and potentially emit in excess of levels that simple, routine
maintenance would limit. The Company has demonstrated that
aggregating assets is an important contributor to managing costs,
improving well economics and enlarging a platform from which it can
administer its well optimisation programs designed to improve asset
productivity while reducing their emissions. Please refer to the
Company's Sustainability information on its website including its
most recent Sustainability Report, which it published in April,
that further details the significant operational and environmental
benefits it delivers to all stakeholders.
As it relates specifically to information provided within the
aforementioned article, we understand that the journalists visited
a small number of wells citing that several were emitting. For
context, the Company notes:
-- Wells sampled represents less than 0.05% of the Company's total portfolio of assets
-- Maintenance to remediate the emissions from the sampled wells
took less than 2 weeks and cost between $0 (labor only) and $300
per well for a total cost of less than $2,000 for all wells
-- Extrapolated emissions across Diversified's entire portfolio
are consistent with levels specified in the Company's public
reports
-- Measured absolute emissions are significantly less than those
from newer wells that produce at higher rates
-- Several of the noted emission sources related to pneumatic
valves that were operating as designed and are a current priority
of the entire industry to re-design; Consistent with its net-zero
target, Diversified is evaluating equipment modifications that
would reduce and potentially eliminate these emissions
-- Average age of the wells visited was over 35 years, often
with decades of economically productive lives remaining
-- 3 to 6+ other companies operated the wells prior to Diversified acquiring the asset
We also understand that certain wells visited were non-producing
and, importantly, were not emitting. The Company had these wells on
its list of those awaiting retirement, which it will safely retire
in compliance with its long-term agreements using both internal
resources and third-party vendors.
With regards to asset retirement, Diversified has a
well-established, highly successful and well-funded program to
systematically retire wells that have reached the end of their
economic lives. The Company has demonstrated its commitment by
annually retiring more wells than required under its long-term
agreements with Pennsylvania, West Virginia, Ohio and Kentucky, and
has also recently invested in its own well retirement personnel and
equipment in an effort to continuously improve its processes and
reduce costs. Reflective of its resolve and ability to meet future
obligations, the Company posts regulatory retirement bonds for
amounts significantly in excess of those generally posted by its
peers, and has consistently affirmed its commitment to maintain a
strong financial position for the benefit all stakeholders,
including the states and communities in which it operates.
The Company provides transparent and fulsome disclosure of
significant aspects of its business including its financial
reports, sustainability reports and supplemental investor
presentation materials, all of which the Company makes available on
its website. Most recently and with its midyear results reporting,
the Company announced its plans to host a Capital Markets Day in
Q4'21 at which it will continue to unveil specific actions it is
taking to advance its ESG efforts, meet all of its obligations
including asset retirement, and consistently deliver value for its
investors.
Diversified Energy Company PLC +1 205 408 0909
Teresa Odom
www.div.energy
ir@dgoc.com
Buchanan +44 20 7466 5000
Financial Public Relations
Ben Romney
Chris Judd
Jon Krinks
James Husband
dec@buchanan.uk.com
About Diversified Energy Company PLC
Diversified Energy Company PLC is an independent energy company
engaged in the production, marketing and transportation of
primarily natural gas related to its synergistic US onshore
upstream and midstream assets.
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