Diversified Energy Responds to Market Reaction
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The inquiry from the United States House of Representatives Committee on Energy and Commerce into Diversified Energy Company PLC's well retirement and emissions information could be a precursor to increased regulatory scrutiny. While the company's proactive stance and past achievements, such as the Gold rating by emissions monitoring programs and the reduction of Scope 1 emissions, demonstrate a commitment to environmental responsibility, the request for information itself may introduce uncertainty among investors.
This development has the potential to affect investor sentiment and, consequently, the stock price in the short-term. Over the long-term, the company's ability to maintain operational excellence and environmental stewardship can contribute positively to its reputation and operational sustainability, potentially leading to a more stable investment profile.
From an environmental compliance perspective, the company's engagement with independent emissions monitoring programs and its well retirement initiatives reflect an industry-leading approach to environmental management. The expansion of Next LVL Energy for well retirement and the use of best-in-class emissions detection equipment are notable efforts that align with broader industry trends towards sustainability and responsible resource management.
However, the effectiveness of these measures in mitigating any potential regulatory actions will be critical. The company's continued transparency and cooperation with the inquiry will be essential in determining the long-term impact on its business operations and regulatory compliance status.
The energy sector is increasingly focused on sustainability and the management of aging infrastructure. Diversified Energy Company PLC's approach to asset stewardship and its strategic investments in environmental performance improvement are aligned with these industry trends. The company's efforts to retire state-owned orphan wells and its transparent reporting practices may provide a competitive advantage and potentially attract investors who prioritize environmental, social and governance (ESG) factors in their decision-making processes.
However, the company's response to the congressional inquiry and the outcomes of any subsequent actions will be closely monitored by the market. The ability to navigate the regulatory environment effectively will be a key factor in determining the company's long-term success and market position within the energy industry.
BIRMINGHAM, AL / ACCESSWIRE / December 19, 2023 / Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) today is providing a response to the movement in its share price. On December 18, 2023, The Company received a request for information from four members of the minority party (52 member committee) of the United States House of Representatives Committee on Energy and Commerce regarding its well retirement and emissions information. The Company is reviewing the letter and intends to engage in a positive and open manner, as it has continuously done, by providinginformation regarding the company's peer-leading environmental and operational actions that underpin its responsible asset stewardship approach.
One of the reasons cited for the information request was a 2021 media report that broadly speculated and inaccurately described numerous items, including how the Company addresses emissions and well retirement. Diversified has previously provided information on these topics and continues to transparently disclose all sustainability-related information, including emissions and well retirement, in its filings and annual sustainability reports. The Company has been awarded a Gold rating by the Oil & Gas Methane Partnership (OGMP) and Project Canary, two of the leading independent emissions monitoring programs for its measurement-driven approach across its asset footprint. The company has also dramatically reduced its reported Scope 1 emissions by more than
The Company has significantly expanded its well retirement segment, Next LVL Energy, allowing it to retire approximately 214 wells in 2022. Full modeling and accounting for the company's asset retirement obligations are audited by independent, global accounting firms and reserve engineers and transparently disclosed. In addition, Diversified has partnered with a number of states within its Appalachian footprint to retire state-owned orphan wells in a cost-efficient and environmentally sound manner.
As a Company that is part of the solution to a broader challenge of aging infrastructure that many industries face, including the energy industry, a core thesis of the unique and differentiating value we create is making the necessary time and monetary investments into the assets to improve their environmental and operating performance. The ownership and stewardship of mature assets allow us to be part of the solution, and Diversified and its employees are very proud to be doing our part for the energy industry in the United States. Working with other stakeholders, such as governments, the technology industry, and the energy industry, we will continue to drive positive changes and improvements to our assets, making Diversified the Right Company at the Right Time.
For further information, please contact:
Diversified Energy Company PLC | +1 973 856 2757 |
Doug Kris | |
FTI Consulting | |
US & UK Financial Public Relations |
About Diversified Energy Company PLC
Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.
SOURCE: Diversified Energy Company PLC
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