I’m sure it will all come out in the greenwash.


In London, DEC shares were down 254p or 19.38% changing hands at £1,056.50 per share.

It comes a day after the company's shares joined the New York Stock Exchange.

Today, in a statement, DEC said: “The company is reviewing the letter and intends to engage in a positive and open manner, as it has continuously done, by providing information regarding the company's peer-leading environmental and operational actions that underpin its responsible asset stewardship approach.”

DEC added: “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 25% compared to 2020 and continues to deploy emissions best-in-class detection equipment and protocols, which includes completing emissions detection surveys on all its natural gas wells.”

DEC, meanwhile, highlighted its commitment to engaging openly and positively with stakeholders, along with a proactive approach to responsible asset stewardship.

The company added that it has expanded its well retirement unit, Next LVL Energy, which saw the retirement of approximately 214 wells in 2022.

It said that the company’s commitment to environmental stewardship extends to collaborating with state governments within its Appalachian operations to retire state-owned orphan wells effectively and responsibly.

DEC added: “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.”

Take a look at their website, their operations are in the environmentally sensitive Appalachian area therefore they are subject to greater scrutiny than say drilling in the scrubland of Texas.
Now they have listed in New York, they have come to the attention of the dreaded politician.
It's the Presidential elections in 2024 and they are all looking for dirt to sling at one another, we have just had COP28 climate meeting, one outcome was to cut global methane emission by 30% by 2030.
That's one reason DEC has come to the attention of the politician, an easy target to get some airtime and publicity to slag off the other side .Politics is a dirty game, right or wrong is never an issue.

As I mentioned on the Transactions thread just now, DEC have just announced an asset sale / transfer.

(Sharecast News) - Diversified Energy has sold producing assets in Appalachia to a special purpose vehicle, DP Lion Equity Holdco, it announced on Tuesday, while retaining a 20% minority interest in the vehicle and continuing to operate them.

The FTSE 250 company said the transaction yielded $200m in proceeds for the company.

After accounting for transaction-related costs, the net proceeds were used to repay outstanding borrowings under its sustainability-linked loan, resulting in a reduction in net debt of 12%, while the remaining funds were allocated for general corporate purposes.

The transaction's implied valuation was a multiple of 5.7 times the anticipated hedged 2024 EBITDA, estimated at $35m.

They were previously used as collateral for the sustainability-linked loan and held a PV-10 valuation of $230m, with a gross production rate of around 50 million cubic feet equivalent per day.

"This latest transaction further demonstrates the attractiveness of Diversified's asset base that provides reliable production and consistency of cash flows," said chief executive officer Rusty Hutson Jr.

"At an attractive multiple, this transaction has provided a path for the company to unlock additional value from our assets, reduce our outstanding debt, and enhance our liquidity."

At 0845 GMT, shares in Diversified Energy Company were up 3.36% at 1,152.5p.

Reporting by Josh White for Sharecast.com.
The Oak chap is extremely positive about this (DEC was already his #1 investment idea for 2024, FWIW) - his take on it can be found here:

https://theoakbloke.substack.com/p/dec-a-dance

DEC have now replied to the Committee in the US (thanks to Peter61 for spotting and posting in Transactions). Well worth a read if invested here as I am - it’s a very well constructed response so it will be interesting to see how the politicians respond. I’ve a feeling this will all blow over in a few months.

https://www.rns-pdf.lond...ns/1838Z_1-2024-1-10.pdf

Response to Congressional Committee Letter
See attached letter in RNS

https://www.lse.co.uk/rn...er-agz3iye9b7rnt1v.html

The opinion of a pundit

https://theoakbloke.subs...&utm_medium=reader2

Common sense says this is a dividend trap.
Common sense says the market isn't always right.
I may add.