Diversified Energy Company
Having seen the Bloomberg article a short time ago I thought that since the shares have been hit so hard by what is a one-sided and unrealistic article and certainly does not reflect the good that is being done for the environment in the USA.
Having studied the company for some years I am fully aware of the model which is to ‘aggregate producing wells and tailoring operating programmes to improve performance and emissions profile’. This avoids the alternative- wells changing hands and moving into less reputable ownership – the very fact that DEC has assembled so many wells under its stewardship avoids that alter choice of low quality, unaccountable operators who have no interest in optimising late life wells.
DEC has well documented routine maintenance programmes and of course many wells that come into this category would otherwise fall into disrepair and uncategorised, untested and with no emission history foe ever. The company spends a large amount of time and money systematically retiring wells that have reached the end of their economic lives, it does this in tandem with several US States in which it operates and is already adding more wells to this process than is required or obligated.
All these moves by the company benefit both the shareholders but more importantly the general public, think that the number of wells reported on represent less than 0.05% of the portfolio of assets. In addition the wells highlighted were subsequently fixed for a a small amount and this was no major league situation even though any leak is considered important. In my view any impact on the environment is significantly better when held under the company’s stewardship and not in the unaccounted, unmaintained pool of wells that would be left outside any unregulated ownership.
This short, flash blog will be followed by a more detailed, more studied response in which the article, which fails to see both sides of this story, can be proved to be exactly the reverse of what it pretends to be and that is that DEC has a significantly positive stewardship in the community which if it was not there would be an unregulated wasteland.
It goes without saying that following the fall the shares offer a massive yield and is a must buy under any circumstances. I think that the upcoming Capital Markets Day will prove without doubt the integrity of the company and its management without any doubt.