Diversified Energy Establishes Landmark Fund to Guarantee Retirement of all West Virginia Wells

In a first-of-its-kind initiative, Diversified Energy has partnered with the State of West Virginia to create the Mountain State Plugging Fund, a groundbreaking initiative that ensures the safe retirement of oil and gas wells at no cost to taxpayers.

Unveiled alongside West Virginia Governor Patrick Morissey at the Next LVL Energy headquarters in Bridgeport, WV, the Mountain State Plugging fund is an initial $70 million commitment that's expected to grow to more than $650 million to ensure each of Diversified's 20,179 wells in West Virginia are safely and responsibly retired. Speaking alongside Diversified' CEO Rusty Hutson, Jr., Governor Morrisey called the initiative a "triple winner."

"When Rusty first approached me about this, my immediate reaction was this is a triple winner," Governor Morrisey said. "This is going to strengthen our energy future. It's going to protect our environment, and it's going to create good, high-paying jobs for the Mountain State. And you know what? It doesn't cost the taxpayers one penny."

The fund, guaranteed by insurance provider OneNexus, positions West Virginia as the first state to proactively address future well-plugging obligations in partnership with an energy company.

"This program outlasts me," Diversified CEO Hutson said. "It outlasts the Governor. It outlasts the regulatory agency. It's going to be in place and will go on for decades. It will take all of the burden off the taxpayers. That was something very important to us."

WATCH THE ANNOUNCEMENT HERE

Key details of The Mountain State Plugging Fund include:

• Retire at least 1,500 wells in the first 20 years, with a goal of 250 wells annually thereafter.
• Provide ~$650 million in long-term financial protection for West Virginia.
• Ensure all Diversified wells are safely plugged and retired, with the state as a third-party beneficiary.

Next LVL Energy will lead plugging operations and increase its active rigs beyond the 20 in operation today.

"Our Next LVL employees are first class, safety-first, get things done type of people," Hutson said. "I applaud their efforts…We are running 16 rigs on a day-to-day basis, constantly plugging wells. These guys know what they are doing, they're doing it in a safe and environmentally sound way."

Diversified is proud to deepen its connection to West Virginia and further our responsible stewardship model. This initiative not only ensures a cleaner, safer future for West Virginia's communities, but also establishes a model on how other energy-producing states can balance economic growth with environmental stewardship.