Douglas Kris, Diversified Energy senior vice president, discusses how its differentiated business model has separated it from risks associated with operations, commodity prices, financing and emissions while generating $1 billion in economic impact for stakeholders and Appalachia states.
Jordan Blum, editorial director, Hart Energy: We’re here at Hart Energy’s, DUG Appalachia Conference in Pittsburgh, and I’m joined by Douglas Kris, the senior vice president at Diversified Energy. Just to get into it, if I can get you to just touch on differentiated business model at Diversified and kind of the strategy that separates you all from the rest of the E&P space.
Douglas Kris: Sure, Jordan. Appreciate that because it’s a great observation. We are different than a lot of the other E&Ps that a number of your viewers are going to see at this conference over the next couple of days, and the U.S. landscape as well. So Diversified really is a reliable energy producer that’s focused on a stewardship model. We, rather than focus on drilling wells, we’re a hundred percent focused on acquiring existing non-core producing assets from other operators where those assets might have now become non-core to them. We really invest in those assets once we acquire them to operationally improve them, as well as improve the environmental performance of those assets. We really focus as well on the risks involved in the E&P business, which differentiates us from other operators as well. We’ve eliminated a lot of the traditional risks, commodity price risk. We hedge about eighty-five percent of our production on a year-over-year basis, giving us certainty of cash flows.
Diversified Energy Company plc (LON:DEC), formerly Diversified Gas & Oil plc, is a gas and oil production company operating in the Appalachian Basin in the United States.
