Diversified responds to US well retirement and emissions concerns

10th Jan 2024 12:36

(Sharecast News) - Diversified Energy issued a response to a US congressional committee on Wednesday, after it was questioned on its well retirement and emissions practices in December.

The FTSE 250 company received a letter from four members of the minority party of the US House of Representatives Committee on Energy and Commerce on 18 December, requesting information on its practices.

At the time, it expressed its intention to cooperate with the inquiry and provide comprehensive information about its initiatives.

The inquiry was partially prompted by a 2021 media report that speculated on Diversified's approach to emissions and well retirement.

In its response letter, the company reaffirmed its commitment to transparency and its track record of disclosure in its filings and annual sustainability reports.

Diversified highlighted a number of achievements, including earning a Gold rating from the Oil & Gas Methane Partnership (OGMP) and Project Canary for its measurement-driven approach to emissions monitoring.

Diversified said it had taken significant steps to reduce its Scope 1 emissions, reporting a reduction of over 25% compared to 2020 levels.

The company said it employs state-of-the-art detection equipment and protocols to conduct emissions surveys across its natural gas wells.

It said it had also expanded its well retirement segment through Next LVL Energy, retiring 214 wells in 2022.

The firm said it ensured full accounting and auditing of asset retirement obligations, collaborating with states in its Appalachian footprint to retire orphan wells in an environmentally responsible and cost-efficient manner.

"Diversified is proud of our unique stewardship business model and for the role we play in responsibly contributing a vital supply of reliable and affordable natural gas, natural gas liquids, and oil to support the economy and effective energy transition," said senior vice-president Paul Espenan in the company's comprehensive letter.

"We are equally proud of the positive socio-economic impact our activities have on the communities, counties, and states in which we operate.

"We are an important part of the solution for economic growth and emissions reduction, and we remain committed to the responsible ownership and operation of existing energy infrastructure."

At 1247 GMT, shares in Diversified Energy Company were down 1.9% at 1,127.63p.

Reporting by Josh White for Sharecast.com.