TIDMDEC
Diversified Energy Company PLC
11 April 2023
11 April 2023
Diversified Energy Company PLC
("Diversified" or the "Company")
2022 Sustainability Report Published
Diversified Energy Company PLC (LSE: DEC) published its 2022
Sustainability Report, which details successes that include lower
methane intensity, safety wins, and investment in local
communities. The 4th annual report, titled Decarbonizing While
Delivering and available on the Company's website ( div.energy
/sustainability ), presents a comprehensive review of Diversified's
ongoing commitment to and significant performance improvements on
material environmental, social and governance ("ESG") issues which
are important to our stakeholders. Diversified remains a
sustainability leader for existing producing and midstream assets,
providing transparency through enhanced disclosures of greenhouse
gas and air emissions, cyber security, state economic impact
analysis across our operating footprint, and a variety of
climate-related financial disclosures.
Responsibly managing our environmental footprint:
-- Reduced methane intensity to 1.2 MT CO(2) e/ MMcfe(a) ,
representing a 20% reduction vs 2021 and 25% vs 2020(b)
Represents substantial progress towards stated goal of 30%
intensity reduction by 2026
-- Achieved Gold Standard Pathway from the Oil and Gas Methane Partnership (OGMP 2.0)
-- Sustainability-linked 70% of the Company's total borrowings:
Completed four sustainability-linked asset-backed security or
ABS transactions in 2022 totalling $1.2 billion
Amended the Company's Credit Facility to include
sustainability-linked features
-- Delivered significant progress on 2022 emissions reduction plan, including:
Surveyed 100% of operated Appalachian wells for fugitive
emissions
Surveyed by air 11,000 miles of owned Appalachia midstream
system
Converted pneumatic devices to compressed air, representing
>35% of 5-year target
-- Significantly expanded the Company's vertical integration of Asset Retirement capabilities
Established Diversified's wholly-owned retirement subsidiary,
Next LVL Energy
Retired 200 Diversified wells in Appalachia, representing a 47%
increase vs 2021
-- Advanced Diversified's Marginal Abatement Cost Curve ("MACC")
analysis for use in progressing the Company's climate strategy
Safeguarding our people and communities:
-- Expanded "OneDEC" culture programme delivered improved key safety metrics, including:
Total Recordable Incidence Rate ("TRIR") of 0.73, a 50%
improvement vs 2021
Motor Vehicle Accident ("MVA") of 0.69, a 4% improvement vs
2021
-- State economic analysis affirms the significance of our
direct and indirect impact across our ten-state operating area
Distributed $507 million in royalty payments to mineral interest
owners
Contributed $105 million in state and local taxes
-- Initiated data-driven diversity, equity and inclusion ("DEI")
tracking and recruiting initiatives to improve recruitment,
retention and promotion
-- Provided community support through charitable giving and emergency/disaster relief programs
Contributed $2.5 million in funding through Diversified's
Community Giving and Engagement Programme and other outreach
efforts
Established a company-matching program of employees' charitable
donations
Deployed financial and physical support to community flood
relief efforts in Appalachia
Focused oversight and risk management:
-- Increased weighting of methane reduction targets in executive
leadership's long-term incentive compensation
-- Completed Board of Directors (the "Board) climate training to
increase climate literacy, aid in assessing and managing
climate-related risks and opportunities
-- Board-designated Non-Executive Director Employee
Representative personally engaged with a diverse group of employees
to inform the Board's efforts and ensure alignment with the
Company's operations
Commenting on the report, CEO Rusty Hutson, Jr. said:
"Diversified continues to demonstrate its leadership across a
broad spectrum of environmental, social, and governance policies
and disclosures. We proudly discuss our many accomplishments within
our 2022 Sustainability Report. Stewardship underpins our
differentiated business model and Smarter Asset Management
activities to deeply embed sustainability in every aspect of our
operations. Accordingly, we will play an increasingly critical role
in a lower-carbon energy economy.
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 formalised our
Community Giving and Engagement Programme to support our commitment
to contribute up to $2 million per year to this purpose. Building
on past successes, we've positioned ourselves to deliver another
year of substantial progress for our stakeholders, made possible by
our focused team who are committed to safety and operational
integrity."
Vice President of ESG & Sustainability, Teresa Odom, also
commented:
"Diversified has built a track record of trust by delivering on
our commitment to responsible operations and transparently
reporting on the same. Our team of approximately 1,600 employees
remain committed to driving and delivering meaningful progress
through responsible stewardship, focused operations, and community
engagement."
Diversified's 2022 Sustainability Report was developed in
reference to the following sustainability reporting standards and
frameworks:
-- Global Reporting Initiative ("GRI") Core Standards
-- Sustainability Accounting Standards Board ("SASB")
-- United Nations' Sustainable Development Goals ("UN SDG")
-- Task Force for Climate Related Financial Disclosures ("TCFD")
Independent third-party, ISOS Group, Inc. ("ISOS"), has provided
a Level 2 moderate assurance of the Company's 2022 Scope 1 and 2
greenhouse gas emissions, as reflected in ISOS' assurance statement
included in the Appendix of the 2022 Sustainability Report.
Footnotes:
(a) Diversified's methane intensity metrics utilise a global warming
potential (100-year GWP) of 28 in line with IPCC's Fifth Assessment
Report (AR5), and reflect metric tonnes ("MT") of carbon dioxide
equivalent ("CO(2) e") per million cubic feet equivalent ("MMcfe")
of gross production
(b) Percent reductions in relation to Diversified's baseline methane
intensity metric of 1.6 MT CO2e per MMcfe, as previously reported
for the 2020 measurement year.
For Company-specific items, refer also to the Glossary of Terms
and/or Alternative Performance Measures found in the Company's 2022
Annual Report.
For further information, please contact:
Diversified Energy Company
PLC +1 973 856 2757
Doug Kris dkris@dgoc.com
www.div.energy
FTI Consulting dec@fticonsulting.com
U.S. & UK Financial Public
Relations
About Diversified Energy Company PLC
Diversified Energy Company PLC is a vertically-integrated
independent energy company engaged in the production, marketing,
transportation and retirement of primarily natural gas related to
its U.S. onshore upstream and midstream assets.
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END
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