Diversified Energy purchases Ohio well plugging service

Diversified Energy Co., an independent energy company, recently purchased Ohio-based Nick’s Well Plugging (NWP), a privately held plugging service provider.

The purchase allows Diversified to meet or exceed its commitment to retire at least 200 of its wells across Appalachia annually by 2023 and offer its plugging services to other operators and state governments.

This will bring the number of Diversified’s retirement crews to eight, with a ninth expected to be added by the end of the second quarter.

“This acquisition demonstrates our commitment to responsibly retire our long-life, low-decline assets when the time comes,” Brad Gray, Diversified executive vice president and COO, said. “Asset retirement is an integral part of our business, and this acquisition strengthens our ability to safely and efficiently retire wells. Our investments to vertically integrate well-plugging expertise and equipment enable us to meet or exceed our own company targets and give the flexibility and capacity to offer services to other operators and states governments looking to retire orphan wells.”

Jason Nicholas and Tammy Angus, who founded NWP with their father Orville Nicholas in 2010, will join Diversified’s existing well retirement subsidiary, while the elder Nicholas will serve as a plugging consultant during a transition period.