Diversified Energy made economic and environmental gains in Appalachia last year

Diversified Energy Company, one of the leading producers of natural gas in the country, showed strong results, particularly in its Pennsylvania operations, in its 2022 Sustainability Report released this week.

The report, titled Decarbonizing While Delivering, revealed that the company achieved key emissions reduction, safety, and community investment goals in 2022.

As the largest independent conventional producer in the Appalachian Basin, Diversified Energy had a significant environmental and economic impact on the region.

Specifically, Diversified’s operations contributed about $129 million to the Pennsylvania gross domestic product (GDP), while supporting 931 jobs and generating $46 million in tax revenue and $63.5 million in royalty revenue. Across its 10-state operations, it added more than $1 billion in GDP, supported more than 8,600 direct and indirect jobs, and generated $500 million in federal, state, and local revenues.

On the environmental front, Diversified Energy reduced methane intensity by 20 percent in 2022, compared to 2021. In the Appalachia region, the impact was even greater, as methane intensity fell by 30 percent, due largely to enhanced measurement, surveying, and controls. Among other achievements, it converted pneumatics to compressed air well ahead of its five-year target and sustainability-linked 70 percent of the company’s total borrowings.

In addition, the company acquired and expanded its asset retirement company, Next LVL Energy, in 2022. Next LVL retired 200 Diversified-owned wells in Appalachia last year, which marks a 47 percent increase year-over-year. Further, Diversified Energy surveyed 100 percent of operated Appalachian wells for fugitive emissions and surveyed by air some 11,000 miles of owned Appalachia midstream system.

“Diversified continues to demonstrate its leadership across a broad spectrum of environmental, social, and governance policies and disclosures,” Diversified CEO Rusty Hutson Jr. said. “While environmental discipline is at the core of our business strategy, so too is our commitment to socio-economic development and community engagement. We are proud to have formalized our Community Giving and Engagement Program to support our commitment to contribute up to $2 million per year to this purpose.”

In 2022, as Hutson mentioned, Diversified Energy contributed $2.5 million in funding through its community giving program, supporting some 140 organizations in its operating areas. Part of it came from a company matching program of employee donations.

Luke Bernstein, president and CEO of the Pennsylvania Chamber of Business and Industry, said in the report that Diversified Energy was an engaged partner working to create a more sustainable energy future for the Commonwealth. “Diversified Energy is a responsible operator creating reliable and affordable energy for Pennsylvania businesses and families. The company is a leader on efforts both to meet the energy needs of tomorrow and to mitigate emissions through plugging abandoned and orphaned wells for the state.”

Among other highlights, the company expanded its OneDEC safety and accountability program. OneDEC is rooted in fostering a culture of operational excellence by integrating people, processes, and systems. It helped produce a 50 percent incident rate decline last year.