Diversified Energy

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EQT Provides More Details on DGO Asset Sale, 1.4 Bcf/d Curtailment
May 27, 2020May 27, 2020

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”
Diversified Energy | Energy Companies

The Origins of Diversified Gas & Oil – From 1 to 60,000 Wells
May 18, 2020May 18, 2020

Rusty Hutson, Jr. (credit: Tyler Star News)

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 Energy | Energy Companies | EQT Corp | Statewide WV | West Virginia

Diversified Buys 900 EQT Wells (67 Shale Wells) for $125M
May 13, 2020May 13, 2020

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 Energy | Energy Companies | Kentucky | Statewide WV | West Virginia

Diversified Deal to Pick Up Another 6,500 O&G Wells in WV, KY, TN
April 14, 2020April 14, 2020

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 Energy | Energy Companies | Ohio | Statewide OH

Diversified Agrees to Plug an Extra 2 Wells per Year in Ohio
March 26, 2020March 26, 2020

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 Energy | Energy Companies

Diversified Gas & Oil Blazes Trail Using Wells as Collateral
January 7, 2020January 7, 2020

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 Energy | Energy Companies

Diversified Gas & Oil Securitizes Appalachian Wells to Raise $200M
November 20, 2019November 20, 2019

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 Energy | EdgeMarc Energy | Energy Companies | Monroe County | Ohio | Washington County (OH)

Diversified May Monetize Some EdgeMarc OH Utica Assets
September 25, 2019September 25, 2019

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”
Diversified Energy | EdgeMarc Energy | Energy Companies | Monroe County | Ohio | Washington County (OH)

Bankrupt EdgeMarc Sells Ohio Utica Assets to Diversified for $50M
August 29, 2019August 29, 2019

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 Energy | Energy Companies

Diversified G&O Production Soars 30% with Added Shale Wells
May 21, 2019May 21, 2019

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 Energy | Energy Companies | HG Energy | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Diversified Pays $400M for HG Energy’s Shale Assets in PA, WV
March 28, 2019March 29, 2019

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 Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

DEP and Diversified Gas & Oil Compromise on Plugging Old PA Wells
March 12, 2019March 12, 2019

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”
Diversified Energy | Energy Companies

Birth of a Drilling Company – How Diversified Gas & Oil Got Its Start
January 15, 2019January 17, 2019

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”
Diversified Energy | Energy Companies | Statewide WV | West Virginia

Diversified Deal in WV to Plug 730 Abandoned Wells Over 15 Years
December 7, 2018December 7, 2018

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”
Diversified Energy | Energy Companies | EQT Corp | Statewide WV | West Virginia

WV Surface Owners Accuse EQT of Selling Wells Should be Plugged
November 21, 2018November 21, 2018

The West Virginia Surface Owners’ Rights Organization (WVSORO) is making some big accusations against EQT (perhaps other drillers too) in saying that EQT, which once owned thousands of conventional oil and gas wells in the state, is selling those wells to companies that may go out of business and therefore will not be able to properly plug those wells as they reach end-of-life and no longer produce. Specifically, WVSORO mentions the recent sale by EQT of its WV conventional assets to Diversified Gas & Oil. In June, MDN brought you the exclusive 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 they did it again, announcing 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). WVSORO’s charge is that Diversified is buying those wells intending to never plug them when they’re exhausted. WVSORO is asking the state to deny transferring those wells from EQT to Diversified.
Read More “WV Surface Owners Accuse EQT of Selling Wells Should be Plugged”
Diversified Energy | Energy Companies | Industrywide Issues | Kentucky | M&A | Statewide VA | Statewide WV | Virginia | West Virginia

Diversified Gas & Oil Buys Core Appalachia for $183M
October 12, 2018October 12, 2018

Diversified Gas & Oil continues its mission to buy as many non-shale (conventional) oil and gas wells as it can in the Appalachian Basin. In June, MDN brought you the exclusive 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). They’ve just done it again. This week 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.
Read More “Diversified Gas & Oil Buys Core Appalachia for $183M”