Diversified Energy Purchases Third Appalachia Plugging Company

Diversified Energy said it controls inflationary costs by owning the servicing companies and will retire 200 wells per year in Appalachia, far exceeding its government-mandated requirements.

Diversified Energy Purchases Third Appalachia Plugging Company

With its latest acquisition of ConServ, Diversified Energy’s plugging program now includes 15 well plugging rigs, an increase of 70% since first-quarter 2022. (Source: Shutterstock.com)

Diversified Energy Co. Plc acquired the well services and plugging assets of Contractor Services Inc. (ConServ) of West Virginia, the third such acquisition Diversified said July 27 that it had made this year.

The acquisition significantly enhances Diversified’s ability to meet its goal of retiring at least 200 wells per year across the company’s Appalachian footprint, “well in excess of state minimum plugging requirements and with locally based internal equipment and crews,” according to the company’s press release.

Diversified has consistently exceeded state-minimum plugging obligations of 80 wells per year since its inception in 2018, the company reported in its May earnings presentation.

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Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.