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A Letter from our VP of Sustainability

I am pleased to provide you this annual update on Diversified’s progress during 2022 across our environmental, social, and governance initiatives. Our more than 1,600 employees remain committed to driving and delivering meaningful progress through responsible stewardship, focused operations and community engagement. With this context, we are excited to share the significant progress Diversified made during the year.

2022 Sustainability ReportSustainability Report Cover

Driving significant climate, environmental and safety improvements

In our upstream segment, and nine months sooner than our original target date, our employees completed initial emissions detection surveys on 100% of our operated Appalachia wells, immediately repairing any fugitive emissions, where practicable, and thereby attaining a documented no-leak rate on approximately 90% of total initial asset surveys. Meanwhile, our midstream segment supported aerial emissions survey efforts on ~60% of our ~17,700 mile midstream system, where our efforts also covered ~10,500 of our wells and compressor stations and further benefited our industry partners and offset operators in identifying potential leaks on their midstream systems. In both our upstream and midstream emissions detection and repair initiatives, we are working to repair the remaining prioritised leaks. We also made significant progress in 2022 against our stated five-year target to replace natural gas-driven pneumatic devices with compressed air systems, further driving significant environmental benefit. At the same time, we continue to focus on our OneDEC safety culture through expanding awareness, reporting and training programmes, as evidenced by a more than 500% increase in Good Catch/Near Miss reporting during the year and a more than 50% improvement in our yearover- year TRIR to 0.73. Additionally, our annual MVA rate improved 4% to 0.69 even  with new acquisitions contributing to increases of 18% and 35% in the number of employees operating company vehicles and total miles driven, respectively, during the period.

Identifying and supporting community needs

Diversified seeks to support and improve its surrounding communities through targeted social development, economic improvement and engagement efforts by empowering our large workforce living and working in these communities to make a difference where, when and how it matters most. During 2022, we formalised our Community Giving and Engagement Programme to identify and support the physical and economic needs of the communities we serve across our growing 10-state footprint. In response to our 2022 stated goal to distribute $2 million in grant funding and community/stakeholder engagement, we enhanced our volunteer efforts and provided monetary funds of approximately $2.5 million to some 140 organisations. Through these investments, we have expanded access to youth fine arts development along with secondary and higher education programmes and initiatives, supported vital health and well-being initiatives for both adults and children, provided first responders with much needed funding and equipment to meet emergency needs in their communities, and joined the front lines of relief efforts in the wake of devastating floods. Separately, we also expanded both our student internship and scholarship programmes.

Remaining committed to transparency

Climate Risk & Resilience Report

In 2022, we were pleased to receive the OGMP 2.0 Gold Standard Pathway designation, validating our endeavours to accurately measure and report our emissions footprint, particularly methane, and to deliver a differentiated energy product. While the designation was a significant achievement and one of which we are very proud, we remain committed to continuously improving our measurement and reporting.

As such, we have again engaged ISOS to provide a moderate Level 2 assurance of our reporting of Scope 1 and 2 GHG emissions. We are pleased to share in this year’s Report a first time look at a state-by-state economic analysis which reflects the direct and ancillary impact our operations have on the communities in which we operate, including but not limited to employment opportunities and related labour income and tax revenues paid to federal, state and local jurisdictions.

2022 was a year of great progress for our stewardship and ESG initiatives. I am proud of our teams for their support and for their commitment to deliver on our stated goals. We perpetually strive to differentiate our company and operations by focusing on continuous asset enhancement, environmental stewardship, and effective community action across our footprint. We look forward to driving additional improvement and to providing ongoing updates on our progress.

Vice President of Sustainability

Diversified is committed to leading in transparent emissions and ESG reporting. Please refer to the below for our historical Sustainability Reports, first published for the 2019 operating year.

2021 Sustainability Report 2020 Sustainability Report 2019 Sustainability Report