Diversified Saves Big Money Retiring Its Own Older Wells
In late 2021, Diversified Energy (formerly Diversified Gas & Oil) announced it had purchased Next LVL Energy, a well-plugging company that concentrates on plugging mainly old conventional oil and gas wells in Appalachia (see Diversified Energy Buys Well-Plugging Co. Next LVL Energy). Next LVL was headquartered in the Pittsburgh region. In early 2023, Diversified moved Next LVL to a brand new headquarters in Bridgeport, WV (see Diversified’s Next LVL Energy Moves Headquarters from PA to WV). Since then, Diversified has grown the subsidiary. In 2023, Next LVL retired over 400 wells!
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In April, the Ohio Oil and Gas Commission upheld a regulatory order from the Ohio Dept. of Natural Resources (ODNR) suspending operations of three wastewater injection wells located in Torch (Athens County), OH, owned by K&H Partners, a subsidiary of Tallgrass Energy (see 
In June 2018, MDN exclusively brought our readers the news that Diversified Gas & Oil (now called Diversified Energy) had purchased EQT Corporation’s Huron Shale assets, with a bunch of conventional wells, in Kentucky, Virginia, and West Virginia for $575 million (see 
Every major public “upstream” (exploration and production) company invests in finding and developing reserves — except one, which happens to be the largest owner of wells in the country. Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (also assets in other regions, too), owns approximately 8 million acres of leases with 67,000 (mostly) conventional oil and gas wells. The company’s business model is to buy lower-producing wells on the cheap and find ways to make them more productive. The company doesn’t do any of its own drilling from scratch. It buys wells drilled long ago (or, in some cases, still under development).
Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (with assets in other regions, too), owns approximately 8 million acres of leases with 67,000 (mostly) conventional oil and gas wells. The company’s business model is to buy lower-producing wells on the cheap and find ways to make them more productive. Diversified set a goal of reducing methane emissions by 50% over levels from 2020 and to do it by 2030. At the recent Hart Energy DUG GAS+ Conference and Expo, Diversified senior VP of EHS&R, Paul Espenan, said the company is pleased to announce it has already met that goal! And the company is well on its way to zero methane emissions by 2040. How is Diversified doing it?
There were 19 new permits issued to drill in the Marcellus/Utica during the week of Feb. 5 – 11, versus 20 permits issued the prior week. Pennsylvania issued 13 new permits last week. Ohio issued 4 new permits. West Virginia issued 2 new permits last week. Range Resources scored the most new permits with 5 split between Allegheny and Beaver counties in PA. Chesapeake Energy received 4 permits in Bradford County, PA. Seneca Resources received 4 permits in Elk County, PA. Encino Energy received 4 permits in Guernsey County, OH. And Diversified Energy received 2 permits in Harrison County, WV.
Diversified Energy Company, with major assets in the Appalachian region (including the Marcellus/Utica), announced yesterday the company had sold a majority stake in an unspecified number of Appalachian conventional oil and gas wells to an investment company called DP Lion Equity Holdco, for $200 million. 
Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (and other regions, too), owns approximately 8 million acres of leases with 67,000 (mostly) conventional oil and gas wells. The company’s business model is to buy lower-producing wells on the cheap and find ways to make them more productive. For years, we have highlighted Diversified’s “contrarian” business model (
Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (and other regions, too), owns approximately 8 million acres of leases with 67,000 (mostly) conventional oil and gas wells. The company’s business model is to buy lower-producing wells on the cheap and find ways to make them more productive. The company issued its latest update, for the first half of 2023, last Friday. Paul Gough, from the Pittsburgh Business Times, listened to the conference call and combed through the update. He hit on a key piece of news: Diversified has accelerated its program to plug old wells (its own wells in addition to orphaned wells) this year. In fact, the company has already (as of June 30) plugged 174 wells for the first half of the year. That number includes 87 of Diversified’s own wells.