Diversified Energy’s growth in the conventional gas sector

Diversified Energy Company (DEC) has developed a business model aimed at acquiring and revitalising mature gas wells that still possess significant productive potential, estimated to last another 40-50 years. This model, which eschews drilling and fracking, has enabled DEC to become the largest owner of gas wells in the United States, surpassing even Exxon and Chevron, with over 70,000 wells in its portfolio.

Reese Energy Consulting reports that DEC, the largest conventional gas producer in Appalachia, expanded its operations two years ago into prolific areas such as Haynesville, Cotton Valley, Barnett, Anadarko, and Eagle Ford. These regions, rich in resources, have seen a shift in focus towards fracked wells due to the shale revolution. DEC, led by founder and CEO Rusty Hutson, has capitalised on this trend, acquiring traditional oil and gas wells that larger exploration and production companies have abandoned in favour of higher-yield operations.

Acquisitions are crucial to DEC’s strategy, ensuring a steady inventory of low-risk, low-cost, long-life assets. This approach has driven the company’s success, allowing it to maximise the extraction of hydrocarbons from these wells. Following its successful ventures in Appalachia and further south, DEC recently secured a conditional purchase and sales agreement with Crescent Pass Energy for $106 million in East Texas. This acquisition includes 170,000 acres, 827 wells, and a production capacity of 38 MMCFD, with an annual decline rate of 9%.

DEC’s innovative strategy continues to prove its worth in the competitive energy market, reaffirming its position as a leading player in the conventional gas sector.

Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    X
    LinkedIn
    Diversified Energy Company plc

    More articles like this

    Diversified Energy Company plc

    Natural Gas benefits for businesses

    Natural gas offers numerous advantages for businesses, including reliability, flexibility, and a substantial reduction in carbon emissions compared to other non-renewable energy sources. As a clean-burning option, it helps meet the rising energy demands while simultaneously

    Diversified Energy Company plc

    Driving the future of sustainable energy solutions

    The global energy sector is undergoing a significant transformation, driven by innovation, sustainability initiatives, and the increasing demand for reliable energy sources. As the world looks to transition towards greener solutions, traditional energy companies are evolving

    Diversified Energy Company plc

    Diversified Energy Company completes Crescent Pass acquisition

    Diversified Energy Company PLC (LON/NYSE: DEC) has announced the closing of its acquisition of the of high-working interest, operated natural gas properties and related facilities located within eastern Texas (the “Assets”) from Crescent Pass Energy). Acquisition Highlights

    Diversified Energy Company plc

    Diversified Energy Company to publish Interim Results on August 15, 2024

    Diversified Energy Company PLC (LON:DEC) has announced that the Company plans to publish its Interim Results for the six months ended June 30, 2024 on Thursday, August 15, 2024. The Company will host a conference call that day at 2:00 PM BST (9:00 AM EDT) to discuss the Interim Results and

    Diversified Energy Company plc

    US benchmark natural gas prices gain global influence

    After years of relative isolation, US benchmark natural gas prices are now playing a significant role in shaping global LNG market contracts. The Henry Hub price in the US is becoming increasingly influential in determining regional

    Diversified Energy Company plc

    US emerges as a global energy leader

    The energy market has always been shaped by the dynamics of supply and demand, as well as geopolitical and macroeconomic influences. Recently, a significant shift has occurred, transforming the market with the rise of the United

    Diversified Energy Company plc

    The positive impact of Natural Gas on our energy future

    Natural gas has emerged as a key player in the global energy landscape, providing a cleaner, more efficient alternative to traditional fossil fuels. As countries worldwide strive to reduce carbon emissions and transition to more sustainable