Diversified Energy began with a small portfolio of producing wells in West Virginia in 2001. At the time, much of the industry’s attention was on finding and developing new acreage, while mature producing wells attracted less interest. Diversified took the opposite approach. It focused on wells that were already producing, with the aim of extending their economic lives through disciplined operations and cost control. That approach remains central to the business today.
Diversified acquires proved developed producing, or PDP, oil and gas wells with relatively shallow decline curves. It then focuses on production uptime, operating costs and asset management rather than making new drilling the primary driver of growth. The company also hedges a large proportion of its production several years forward, giving the business greater visibility over cash flow and reducing direct exposure to commodity price movements.
Mature wells can provide relatively predictable production, but their economics depend on keeping them running efficiently. Diversified’s approach includes managing field operations, improving uptime, using technology and increasing the efficiency of its workforce and equipment. The company calls this Smarter Asset Management. The principle is straightforward: mature wells remain valuable assets when they are managed properly.
Diversified operates its own well retirement programme through Next LVL Energy, allowing it to manage plugging and site restoration internally. In 2025, the subsidiary retired 486 wells, including 388 Diversified wells and 98 third-party and orphan wells. More than 1,550 oil and natural gas wells have been retired through the programme since it began.
The Permian represents the next major stage of the strategy. Diversified entered the basin eighteen months ago through its acquisition of Maverick Natural Resources. The company is now expanding that position through the Birch Resources transaction, which it announced at a value of $1.8 billion.
The acquisition is expected to increase Diversified’s Permian production from approximately 9,000 barrels of oil equivalent per day to about 77,000 barrels per day. Adjusted EBITDA from the assets is expected to rise from $64 million to $612 million. Both measures represent increases of roughly 800%.
Diversified Energy Company plc (LON:DEC, NYSE:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.
