Diversified Energy

Ever heard of short selling? It’s a trading strategy of speculating on a stock’s decline in price. According to Investopedia, “In short selling, a position is opened by borrowing shares of a stock, bond, or other asset that the investor believes will decrease in value. The investor then sells these borrowed shares to buyers willing to pay the market price. Before the borrowed shares must be returned, the trader is betting that the price will continue to decline and they can purchase the shares at a lower cost.” A so-called activist investor (we call them corporate raiders) in London called Snowcap Research bought (or borrowed) shares of Diversified Energy’s stock and then issued a 39-page screed claiming Diversified won’t be able to plug the wells it owns and will likely cut its dividend within 12 months. The screed is aimed at forcing the price of Diversified’s stock down so Snowcap can make a profit.
Read More “Activist Investor Attacks Diversified, Tries (Fails) to Tank Stock”

Democrats play dirty. At least, four Democrats from the U.S. House Energy and Commerce Committee are playing dirty. On Monday, Diversified Energy, with major assets in the Appalachian region (including the Marcellus/Utica), began to trade its stock on the New York Stock Exchange alongside of continued trading on its “home” exchange, the London Stock Exchange. The very same day, four Democrats — Frank Pallone, Jr. (D-NJ), Kathy Castor (D-FL), Diana DeGette (D-CO), and Paul Tonko (D-NY) — sent a very public letter to Diversified CEO Rusty Hutson launching a probe into the company, implying that Diversified will never be able to plug all of the old wells that it owns (when it comes time to retire them), essentially accusing the company of planning to defraud the public. News of the Democrat smear job hit like a hammer, causing Diversified’s stock price to plunge by more than 15% (although it has since somewhat recovered).
Read More “4 U.S. House Democrats Launch Witch Hunt Against Diversified Energy”

One of the speakers at the recent Hart Energy DUG Appalachia event in Pittsburgh was Douglas Kris, senior vice president of Diversified Energy. For years, we have highlighted Diversified’s “contrarian” business model (see our Diversified stories here). Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica as well as other regions, 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 (older) wells on the cheap, find ways to make them more productive and keep them for decades to come. Kris further explained the company’s model and philosophy at DUG…
Read More “DUG Appalachia: Diversified Buys, Optimizes, Holds for Long-Term”

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 (see our Diversified stories here). Recently, oil and gas expert David Blackmon (who writes for the Forbes website) interviewed Diversified CEO Rusty Hutson, who had some interesting comments about the Appalachian region.
Read More “Diversified CEO Says Gulf Coast has Brighter Future than Appalachia”

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.
Read More “Diversified Picks Up Pace Plugging Old Wells – 174 So Far in 2023”