Diversified Energy Company
Diversified Energy Company produces, transports, and markets natural gas and natural gas liquids in the U.S. Appalachian and Central regions, focusing on responsible asset acquisition and stewardship. The company emphasizes environmental and social impact, community investment, and sustainability, trading on both the NYSE and LSE under the ticker DEC.
Services
Diversified Energy Company produces, transports, and markets natural gas and natural gas liquids primarily from existing assets in the U.S. Appalachian and Central regions. The company focuses on asset acquisition and stewardship to enable responsible energy production. It owns roughly 17,000 miles of gathering and transportation lines and associated compression stations, and manages volumes both for Diversified and third-party operators through its Energy Marketing division. The subsidiary Next LVL Energy specializes in efficient and cost-effective asset retirement and auxiliary well service programs.
Sustainability Strategy
Diversified Energy Company has a comprehensive sustainability strategy focused on prudent risk management, asset integrity, employee safety, environmental protection, and emissions reduction. It aims to reduce Scope 1 methane intensity by 30% by 2026 and 50% by 2030, using 2020 as the baseline. The company also targets net zero Scope 1 and 2 absolute greenhouse gas emissions by 2040. Diversified achieved its 2030 methane intensity goal seven years ahead of schedule and has been awarded the OGMP 2.0’s Gold Standard for emissions reporting for two consecutive years.
Community Impact
In 2023, Diversified Energy Company invested $2.1 million in social and economic development programs and contributed more than $85 million in state and local taxes. The company's community giving program focuses on Community Enrichment, Education & Workforce, and the Environment. Through a partnership with Operation Warm, Diversified donated over 6,200 coats to youth in its operating regions. The company also distributed $237 million in royalty payments to mineral interest owners in 2023 and supports nearly 8,000 jobs, providing $505 million in ancillary labor income.
Financial Performance
Diversified Energy Company generated $1 billion in total revenue in 2023, inclusive of hedges, and has a leverage ratio of 2.3x Net Debt-to-Adjusted EBITDA as of December 31, 2023. The company recommends a final quarterly dividend of $0.29 per share. Additionally, Diversified commenced trading on the New York Stock Exchange in 2023 and has a corporate decline rate of approximately 10% per year. Diversified Energy has a proven track record in acquiring, optimizing, operating, and retiring assets, positioning itself as a profitable and responsible energy provider.
Awards and Recognition
Diversified Energy Company received several accolades for its achievements in sustainability and environmental responsibility. The company won the ESG Report of the Year from ESG Awards 2023 and achieved the OGMP 2.0's Gold Standard for emissions reporting for the second consecutive year. Furthermore, Diversified's sustainability efforts led to an increased MSCI sustainability rating, reaching AA leadership status.