Asset Retirement Supplement For the Liability Recorded at 30 June 2021 August 2021
DISCLAIMER The information contained in this document (the Presentation) has been prepared by Diversified Energy Company PLC (the Company). This Presentation has not been approved by an authorised person in accordance with Section 21 of…
PLANNING SAGE & EFFICIENT OPERATIONS DIVERSIFIEDS ASSET RETIREMENT DECISION TREE Does the well present any Is the well currently concern to safety or the NO economic or not environment (a) STEP STEP 2 1 YES YES NO Will…
UNDERSTANDING THE RETIREMENT PROCESS Systematic Process Systematic Process isis Low-Cost Low-Costin inNature Nature(a)(a) Additional Additional Cost Cost Saving SavingFactors Factors Blending internal resources with 3rd Party…
COMPARING A TYPICAL DEC WELL TO OFFSHORE PLATFORMS TYPICAL DEC GAS WELL OFFSHORE PLATFORM(b) Generally 20K-30K to Retire(a) Up to Hundreds of Millions to Retire(c) Compared to Offshore Decommissioning, Retiring Onshore 5 Wells…
LONG-TERM STATE AGREEMENTS CREATE LINE-OF-SIGHT II Diversified engaged primary states of Appalachian operations and successfully negotiated long-term agreements covering 97% wells 80% of Annual Requirements Fulfilled as of 30 June…
ACCOUNTING FOR THE ARO LIABILITY PV Analysis Bridging to the Balance Sheet ARO(a) Rollforward Net Cash Flow (Field Level) Asset Retirement Obligation 48 (1) 6,700 4:1 2,500 1,700 69 Undiscounted(b) PV10 Inputs…
Appendix Asset Retirement Supplement
APPALACHIAN WELLS HAVE DEMONSTRATED LOW DECLINES II The typical well has reached an exponential declination rate of < 6% per annum; Smarter Asset Management programme focused on further reducing declines I Prior to Diversifieds 75%…
DIVERSIFIED DETERMINED PLUGGING COSTS AT THE WELL LEVEL III Diversifieds plugging programme scale provides the opportunity to further reduce current costs, as vendors give lower pricing for blocks of work; experience over a growing…
SAFELY AND SYSTEMATICALLY RETIRING WELLS Key Factors Highlighting Our Unique Commitment Environmental Economies Tailored Competitive Stewardship Of Scale Plugging Bidding Plugging activities require Regularity of plugging…
UNDERSTANDING THE DISCOUNT RATE APPLIED I III Apply the Discount Rate(a) Applicable Guidance under IAS 37 Discount rate determined for calculation of the ARO Amount should be the best estimate at the balance sheet date liability…
ILLUSTRATIVE WIND-DOWN MODEL EXISTING ASSET PORTFOLIO(a) SUPPORTS 3.5 BILLION IN CASH DISTRIBUTIONS OVER 75 YEARS 7.7B of net Field CF (undiscounted) Years 1-37 Years 38-75 Major Assumptions: 34% 2.6B Full cash run-off, no…
DIVERSIFIED BROKERS Corporate Tennyson Stifel PO BOX 381087 TENNYSON SECURITIES STIFEL NICOLAUS EUROPE LTD BIRMINGHAM, ALABAMA 20 FENCHURCH STREET 150 CHEAPSIDE 35238-1087 (USA) LONDON EC3M 3BY LONDON EC2V 6ET WWW.DIV.ENERGY TERESA…
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