Investors are tuning into companies that don’t just talk sustainability—they build it into their business model from the ground up. Diversified Energy is doing exactly that, executing a sharp acquisition strategy underpinned by data-led environmental stewardship that turns legacy assets into low-emission, high-performance energy infrastructure. Here’s how they’re making smart investments even smarter.
Diversified Energy’s employee-led sustainability strategy is deeply integrated into every phase of its operations—from acquisition and optimisation to end-of-life retirement. The approach is not just about compliance; it’s about leadership in emissions performance and asset efficiency. This commitment is operationalised through its Smarter Asset Management (SAM) programme, a data-driven system designed to reduce emissions, enhance productivity, and lower operating costs across the entire portfolio.
SAM is a cornerstone of Diversified’s energy transition efforts. The programme supports rigorous monitoring of well sites and compression facilities, with a 2023 milestone of inspecting over 99.9% of producing well sites for leaks. These inspections drive timely repairs and improve environmental performance while digitalisation continues to enhance visibility, particularly in the Central Region.
Transparent communication reinforces accountability. The company consistently updates investors and stakeholders with progress on emissions reduction via press releases, conference presentations, and direct engagement. These updates reflect tangible results and continuous improvement.
Every acquisition starts with robust environmental due diligence. Diversified’s cross-functional teams evaluate climate impact metrics such as methane emissions intensity and the presence of gas-driven devices. This ensures each new asset aligns with both portfolio performance and ESG targets. SAM integration is planned from the outset, supporting upgrades that deliver real operational and environmental value.
Post-acquisition, the focus shifts to emission reduction. Goals are clearly defined and pursued through cutting-edge monitoring technology, emission repairs, and a comprehensive Environmental, Health, and Safety management framework. These targeted strategies actively reduce the carbon footprint of inherited assets.
At the end of an asset’s lifecycle, Diversified’s approach remains strategic and deliberate. With its subsidiary Next LVL Energy operating 17 service rigs, the company manages the safe and permanent retirement of its own and others’ end-of-life wells. This vertically integrated capability ensures high standards and cost efficiency, while supporting state and industry goals around legacy well closure.
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.
