Diversified Energy

Diversified Energy (née Diversified Gas & Oil) continues to expand *outside* of the Marcellus/Utica region. In April the company announced it had purchased ~780 net operated wells and leases in the Cotton Valley/Haynesville region of Lousiana for $135 million (see Diversified Expands Beyond Appalachia First Time, Buys La. Assets). Barely a month later and they bought assets in the Barnett Shale for $180 million (see Diversified Expands Outside M-U Again, Buys Blackbeard in Barnett). And now, a little over a month after that, they’ve done it again, with another purchase in the Haynesville play, this time for $308 million.
Read More “Diversified Expands in Haynesville, Buys Tanos Assets for $308M”

Diversified Gas & Oil Company, which owns close to 8 million acres of leases with some 60,000 (mostly) conventional oil and gas wells (with over 400 Marcellus/Utica shale wells) in the Appalachian Basin, is no longer calling itself Diversified Gas & Oil Company. Instead, the company has changed its name to Diversified Energy Company. The company also changed its website URL from the old dgoc.com to div.energy. However, the mission remains the same: grow by buying older/existing gas and oil wells.
Read More “Diversified Drops ‘Gas & Oil’ from Name, Looks to Expand”

Diversified Gas & Oil (DGO) owns close to 8 million acres of leases with some 60,000 (mostly) conventional oil and gas wells (with over 400 Marcellus/Utica shale wells)–all of it in the Appalachian Basin. DGO is expanding. Earlier today the company announced it has cut a deal to buy ~780 net operated wells and leases in the Cotton Valley/Haynesville region of Lousiana for $135 million.
Read More “Diversified Expands Beyond Appalachia First Time, Buys La. Assets”

Diversified Gas & Oil (DGO) owns close to 8 million acres of leases with some 60,000 (mostly) conventional oil and gas wells. Their focus has been to acquire quality production and cash flow–regardless of the well or commodity type (gas or oil)–in the Appalachian Basin. DGO currently owns over 400 Marcellus/Utica shale wells in their portfolio too. Earlier this week the company issued its fourth-quarter and full-year 2020 update. Although the company reported a $23 million loss for 2020 (versus making $99 million in 2019), CEO Rusty Hutson says he is “exceptionally pleased with our results in 2020” and the way the company navigated a turbulent 2020.
Read More “Diversified G&O Update: 30% of Production Comes from Shale”

Diversified Gas & Oil (DGO) is a fascinating company (see our DGO stories here). DGO’s strategy is to seek wells in “the long tail.” That is, wells already drilled with production along the decline curve. We spotted a post that describes how the company keeps producing a profit, even when prices are low.
Read More “Diversified Gas & Oil a “Top Pick” Due to Low Costs, Big Dividends”

Even though the price of natural gas selling at regional trading points like Dominion South has gone up, don’t expect more production in the Marcellus/Utica. Diversified Gas & Oil (DGO) CEO Rusty Hutson, in an interview with S&P Global Platts, said most of the larger drillers in the M-U will not increase production even with higher prices. The ones who will drill more are smaller companies leveraged to the hilt–they have to drill to keep the cash flow coming in.
Read More “DGO CEO Rusty Hutson Predicts M-U Production Plateau”

We’ve always found Diversified Gas & Oil (DGO) a fascinating company (see our DGO stories here). DGO’s strategy is to seek out wells in “the long tail.” That is, wells already along the decline curve. In the first two years after a shale well is drilled, it produces something like 75% (rough numbers) of all the oil and gas it will ever produce. As time goes on, production greatly tapers off.
Read More “The Origins of Diversified Gas & Oil – From 1 to 60,000 Wells”