Impact to Diversified
Diversified’s asset retirement programme reflects the Company’s ongoing commitment to a healthy environment, the surrounding community and its citizens and state regulatory authorities. Diversified’s state-level plugging agreements throughout Appalachia were established in 2018, just one year after the Company went public, and highlight Diversified’s emphasis on transparency in plugging operations. In 2021, Diversified increased its annual well plugging commitment beyond levels required by these state agreements, when the Company announced its intention to retire at least 200 wells per year by the 2023 calendar year.
Consistent with Diversified’s commitment to responsible, sustainable operations, the Company began the vertical integration of asset retirement in 2021 by establishing its in-house plugging operations in 2021. Upon realizing immediate operational success and cost savings over the Company’s historical utilization of third-party vendor’s, Diversified expanded the asset retirement program in 2022 through organic growth and the acquisition of several regional service providers, now operating as Next LVL Energy.
Next LVL Energy positions Diversified as a leading asset retirement service provider in Appalachia with the ability to both efficiently meet the Company’s annual retirement commitments and to profitably retire wells for third-parties, whether complete turnkey services or through single phase support services such as cementing or wireline activities.
For more information, please refer to the Company’s supplemental presentation on asset retirement available at https://ir.div.energy/presentations