Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) published its new annual sustainability report which it said highlights successes and an ambitious outlook for the robust ESG agenda, set in 2021.
It comes after a year in which the company launched its Project Fresh initiative to improve accuracy of its emissions-producing inventory, deploy 600 handheld leak detection devices, and piloted the use of light detection and ranging (LiDAR) aerial surveillance to detect and drive emission reductions.
The company noted, as previously announced, that it had revised down 2020 methane emissions by 62%, and, had achieved a 6% reduction in methane intensity from 2020 to 2021.
It aims to reduce methane intensity 30% by 2026 and 50% by 2030, whilst also aiming for net zero Scope 1 & 2 greenhouse gas emissions by 2040.
"Through our commitment to operational efficiency, production optimisation and asset stewardship, sustainability has always been an integral part of Diversified's DNA,” said chief executive Rusty Hutson.
Hutson added: “With a sustainable business model grounded in stewarding existing wells and infrastructure, we strive to optimise production from existing assets while reducing emissions, which enables us to meet rising natural gas demand without reliance on newly drilled wells.
“We are poised to thrive as we play a critical part of the evolving energy transition.
“By expanding our portfolio of low decline producing assets, extending our vertical integration to improve efficiency while continuously reducing emissions, and delivering consistent shareholder returns through the cycle, we offer a unique opportunity for ESG-focused investors who support a reduction of GHG emissions.”
Hutson told investors that Diversified Energy remains committed to exceeding the expectations of stakeholders and looks forward to providing further continued updates "on our progressive ESG initiatives".
Peel Hunt analyst Matt Cooper, in a note, said: “Diversified has made great strides in improving its environment credentials in the last six months.”
The stockbroker has a ‘buy’ rating for the company, with a 160p price target (current price: 118p).