Diversified Energy acquires Appalachian asset retirement operator

Independent energy company Diversified Energy has acquired West Virginian energy and environmental contracting company ConServ for an undisclosed sum as part of an effort to deliver upon plugging commitments.

Diversified Energy said on Wednesday that the addition of ConServ, which represented the company's third acquisition of an Appalachian asset retirement operator during 2022, enhanced its ability to retire more wells, scaled the business to drive further efficiencies in its internal well plugging programme, and provided it with additional third-party revenues from other operators and state agencies to offset its own well retirement costs.

As part of the acquisition, Diversified stated it will add the ConServ well services and plugging division to its existing Next LVL Energy asset retirement platform, with its plugging programme now including 15 well plugging rigs and an expanded portfolio of services that enhance its ability to retire wells and perform related site preparation and reclamation activities.

"The acquisition significantly enhances the visibility by which Diversified will meet its stated commitment to retire at least 200 wells per year across the company's Appalachian footprint, well in excess of state minimum plugging requirements and with locally based internal equipment and crews," said the group.

As of 0830 BST, Diversified Energy shares were up 0.60% at 117.20p.

Reporting by Iain Gilbert at Sharecast.com