Hm, why didn't you mention or attempt to pick apart DEC's response letter to the Congress inquiry - management hasn't been taken aback but responded in a detailed way.
The way you frame the situation is that management received a letter and all items in it are neither responded nor disputed - which I find misleading. You should have at least tried to discuss their responses.
I will focus on V. Well Retirement and Remediation and VI. Our Approach to Calculating Well Retirement Obligations since that is the focus of this article. They claim "we designed our retirement activities to be equitable for all stakeholders with an emphasis on retiring wells at a higher rate than the previous operators, as well as efforts to return wells to a state of production."
This is false. They negotiated with states to reduce the number of wells they retire--the only stakeholder they care about is themselves. There are wells as reported that are nonproducing (1 in 10 in PA per BBG) that are sitting around while Diversified only retires ~200 of its wells per year.
"During the six months ending June 30, 2023, we retired 100 Diversified wells, inclusive of the Central Region, at an average cost of $25,000 per well."
So they spent a measly $2.5 million on well retirement while sending out dividend checks orders of magnitude greater? Irresponsible.
They continue to claim they can retire wells at much lower rate than anyone else which appears to be fantasmagoric. Meanwhile, Next LVL their subsidiary bills states much higher costs to retire wells... Their money and their mouths are saying different things.
Their projections on Well Obligations are projections decades out on cash flows and decline rates...something impossible to predict. On top of their ridiculously low estimate of plugging costs, they operate with pure hubris as stated in the article.
I'm sure that once Diversified is ready to actually tackle its Well Retirement Obligations decades from now, Rusty and current shareholders will be long gone having cashed their paychecks and dividend checks.
Hm, why didn't you mention or attempt to pick apart DEC's response letter to the Congress inquiry - management hasn't been taken aback but responded in a detailed way.
The way you frame the situation is that management received a letter and all items in it are neither responded nor disputed - which I find misleading. You should have at least tried to discuss their responses.
https://www.rns-pdf.londonstockexchange.com/rns/1838Z_1-2024-1-10.pdf
I will focus on V. Well Retirement and Remediation and VI. Our Approach to Calculating Well Retirement Obligations since that is the focus of this article. They claim "we designed our retirement activities to be equitable for all stakeholders with an emphasis on retiring wells at a higher rate than the previous operators, as well as efforts to return wells to a state of production."
This is false. They negotiated with states to reduce the number of wells they retire--the only stakeholder they care about is themselves. There are wells as reported that are nonproducing (1 in 10 in PA per BBG) that are sitting around while Diversified only retires ~200 of its wells per year.
"During the six months ending June 30, 2023, we retired 100 Diversified wells, inclusive of the Central Region, at an average cost of $25,000 per well."
So they spent a measly $2.5 million on well retirement while sending out dividend checks orders of magnitude greater? Irresponsible.
They continue to claim they can retire wells at much lower rate than anyone else which appears to be fantasmagoric. Meanwhile, Next LVL their subsidiary bills states much higher costs to retire wells... Their money and their mouths are saying different things.
Their projections on Well Obligations are projections decades out on cash flows and decline rates...something impossible to predict. On top of their ridiculously low estimate of plugging costs, they operate with pure hubris as stated in the article.
I'm sure that once Diversified is ready to actually tackle its Well Retirement Obligations decades from now, Rusty and current shareholders will be long gone having cashed their paychecks and dividend checks.