Diversified Energy

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”

Diversified Gas & Oil 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). They currently have over 400 M-U shale wells in their portfolio. In November Diversified closed on a deal to raise money via securitization–meaning to issue securities (“notes”) based on the value of their gas wells (see Diversified Gas & Oil Securitizes Appalachian Wells to Raise $200M). Turns out Diversified is a trail blazer in using wells as collateral.
Read More “Diversified Gas & Oil Blazes Trail Using Wells as Collateral”

Diversified Gas & Oil 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). They currently have over 400 shale wells in their portfolio. Diversified has just closed on a deal to raise more money via securitization–meaning to issue securities (“notes”) based on the value of their gas wells. It will raise a reported $200 million for the company. The securitization transaction is being called “groundbreaking.”
Read More “Diversified Gas & Oil Securitizes Appalachian Wells to Raise $200M”

Diversified Gas & Oil owns close to 3 million acres of leases with some 60,000 (mostly) conventional oil and gas wells. In March Diversified announced it had cut a deal to buy 107 operating shale wells in Pennsylvania and West Virginia for $400 million from HG Energy II (see Diversified Pays $400M for HG Energy’s Shale Assets in PA, WV). Those shale wells have already made a big difference by boosting Diversified’s natural gas production 30% in just one month!
Read More “Diversified G&O Production Soars 30% with Added Shale Wells”