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”
EQT announced yesterday it has closed on a deal to sell “certain non-strategic assets” to Diversified Gas & Oil (DGO) for $125 million, plus another potential $20 million later on. MDN first told you about this deal on May 13 (see Diversified Buys 900 EQT Wells (67 Shale Wells) for $125M). This is the first time EQT has commented publicly on the DGO deal. EQT’s statement differs from previous news accounts about the deal.
Read More “EQT Provides More Details on DGO Asset Sale, 1.4 Bcf/d Curtailment”
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 (DGO) continues its program of buying up mostly older conventional oil and gas wells in Appalachia. In April DGO cut a deal to buy 6,500 conventional wells spread across West Virginia, Kentucky, and Tennessee, along with a 4,700-mile gathering pipeline system located in WV, for $110 million (see Diversified Deal to Pick Up Another 6,500 O&G Wells in WV, KY, TN). DGO has done it again, this time buying 900 wells from EQT located mostly in West Virginia. The deal also includes 67 shale wells in Pennsylvania.
Read More “Diversified Buys 900 EQT Wells (67 Shale Wells) for $125M”
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. They currently have over 400 Marcellus/Utica shale wells in their portfolio too. DGO announced it has a conditional deal to buy another 6,500 conventional wells spread across West Virginia, Kentucky and Tennessee, along with a 4,700-mile gathering pipeline system located in WV. The deal, “subject to ongoing due diligence,” is for $110 million.
Read More “Diversified Deal to Pick Up Another 6,500 O&G Wells in WV, KY, TN”
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)–in the Appalachian Basin. They currently have over 400 Marcellus/Utica shale wells in their portfolio too. When a gas or oil well quits producing, it needs to be plugged. We were aware of deals Diversified has cut with both Pennsylvania and West Virginia to plug old, non-producing wells (see DEP and Diversified Gas & Oil Compromise on Plugging Old PA Wells and Diversified Deal in WV to Plug 730 Abandoned Wells Over 15 Years). It turns out Diversified also has a deal in place with Ohio to plug old wells, a deal that was recently modified.
Read More “Diversified Agrees to Plug an Extra 2 Wells per Year in Ohio”
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”
In August MDN told you that Diversified Gas & Oil was the high (and only) bidder for Ohio Utica assets owned by EdgeMarc Energy, buying those assets out of bankruptcy court (see Bankrupt EdgeMarc Sells Ohio Utica Assets to Diversified for $50M). In a recent interview EdgeMarc CEO Rusty Hutson said the company may (underscore may) look to monetize, or sell, some of those undeveloped assets recently purchased.
UPDATE: Please note that this article was modified from a previous version. A representative alerted us that our original take, in which we said Diversified was “flipping” the EdgeMarc assets, was incorrect and misleading. We do sincerely regret that error.
Read More “Diversified May Monetize Some EdgeMarc OH Utica Assets”
EdgeMarc Energy, headquartered in Canonsburg, PA (with 50,000 acres of Marcellus/Utica leases), filed for Chapter 11 bankruptcy in May, looking to sell all of the company’s assets (see EdgeMarc Energy Files for Bankruptcy, Blames Revolution Pipe). Diversified Gas & Oil placed a bid on EdgeMarc’s Ohio Utica assets, offering $50 million. Nobody else bid, so the bankruptcy court has just approved the sale to Diversified. How many Utica wells and how much acreage? We tell you below.
Read More “Bankrupt EdgeMarc Sells Ohio Utica Assets to Diversified for $50M”
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”
Diversified Gas & Oil has been on a mission to buy as many non-shale (conventional) oil and gas wells as it can in the Appalachian Basin. It owns close to 3 million acres of leases with some 60,000 (mostly) conventional oil and gas wells. That’s changing. Yesterday Diversified announced it has cut a deal to buy 107 operating (and 3 non-operating) shale wells in Pennsylvania and West Virginia for $400 million.
Read More “Diversified Pays $400M for HG Energy’s Shale Assets in PA, WV”
Diversified Gas & Oil has been on a mission to buy as many non-shale (conventional) oil and gas wells as it can in the Appalachian Basin. It owns over millions of acres and tens of thousands of wells–many of them located in Pennsylvania. Last fall the PA Dept. of Environmental Protection (DEP) told Diversified it wants 1,000 of its nonproducing wells plugged in the next five years. Diversified countered it would like to plug 2,000 wells, but over the next 20 years. They ended up compromising.
Read More “DEP and Diversified Gas & Oil Compromise on Plugging Old PA Wells”
Last June Diversified Gas & Oil burst on the Marcellus/Utica scene when they bought 2.5 million acres of leases with 11,350 mostly conventional gas (and oil) wells in Appalachia from EQT (see Diversified Gas & Oil Adds to Conventional Assets in KY, VA, WV). Since that time Diversified has continued to grow. Ever wonder how it got started?
Read More “Birth of a Drilling Company – How Diversified Gas & Oil Got Its Start”
Earlier this week West Virginia regulators signed a deal with Diversified Gas & Oil to plug some 730 abandoned conventional oil and gas wells over the next 15 years. In June, MDN brought you the news that Diversified had purchased EQT’s Huron Shale assets in Kentucky, Virginia and West Virginia for $575 million (see Diversified Gas & Oil Adds to Conventional Assets in KY, VA, WV). In October Diversified announced a deal to buy out Core Appalachia for $183 million, which includes ~5,000 producing wells (90% of production is natgas) and 1.3 million acres in West Virginia, Kentucky and Virginia (see Diversified Gas & Oil Buys Core Appalachia for $183M). Thousands of old conventional wells spread across multiple states. The West Virginia Surface Owners’ Rights Organization (WVSORO) is not happy with the deal cut by WV with Diversified, claiming it doesn’t go nearly far enough.
Read More “Diversified Deal in WV to Plug 730 Abandoned Wells Over 15 Years”