REG-West Virginia and Diversified Energy Launch First-Of-Its-Kind Well Plugging Fund

Diversified EnergyAnnouncement

16/10/2025 12:15

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West Virginia and Diversified Energy Launch First-Of-Its-Kind Well Plugging
Fund

The “Mountain State Plugging Fund” is a groundbreaking partnership that
provides financial assurance for oil and gas well retirement at no cost to
taxpayers

CHARLESTON, West Virginia and BIRMINGHAM, Alabama, Oct. 16, 2025 (GLOBE
NEWSWIRE) -- Governor Patrick Morrisey, in partnership with Diversified Energy
(NYSE & LSE: DEC), today announced a groundbreaking agreement to establish the
nation’s first financial assurance fund dedicated to retiring oil and gas
wells. This public-private collaboration solidifies the Company’s commitment
to fiscal responsibility and financial means for future well retirement and
provides the public with assurances that West Virginia companies will be good
stewards of the environment. Known as the Mountain State Plugging Fund, this
innovative initiative further ensures that Diversified’s oil and natural gas
wells in West Virginia will be safely retired at no cost to taxpayers, setting
a new responsible stewardship standard for aging energy infrastructure across
the United States.

This landmark fund represents a $70 million commitment over 20 years from
Diversified Energy to the State of West Virginia and ensures long-term
environmental stewardship and economic sustainability. The fund is part of
West Virginia’s proactive approach to energy policy, while also providing a
continued focus on environmental safety for its residents, positioning the
Mountain State as a national leader in innovative energy solutions.

In conjunction with this agreement, Diversified will bolster its investment in
its wholly owned subsidiary, Next LVL Energy, to grow its already leading well
retirement capacity within the Appalachian Basin, creating jobs and meaningful
economic impact in the region.

“I’m proud to announce this transformative partnership with Diversified
Energy, a company started right here in West Virginia,” said Governor
Morrisey. “The Mountain State Plugging Fund is a bold step forward —
delivering high-paying jobs as well as environmental and economic benefits for
our communities while showcasing West Virginia’s leadership in energy
innovation. This initiative sends a clear message: West Virginia can both be a
leader in energy dominance and in environmental solutions.”

“Diversified is proud to deepen our commitment to and investment in West
Virginia through this historic partnership,” said Diversified Energy CEO
Rusty Hutson, Jr. “Governor Morrisey’s leadership has been instrumental in
creating energy solutions that protect our environment while strengthening our
economy. This fund sets a new standard of financial assurance for the industry
and reflects our shared vision for responsible energy development in West
Virginia.”

West Virginia becomes the first state government to partner with an energy
company to meaningfully and proactively eliminate future funding concerns for
non-producing wells.

Key details of the agreement include:
* $70 million investment from Diversified across the initial 20-year period,
which is expected to grow over time to $650 million of financial protection to
West Virginia.
* The Mountain State Plugging Fund’s $70 million principal contributed by
Diversified will be guaranteed by OneNexus, an insurance provider of financial
assurance for asset retirement obligations. The fund is held by OneNexus for
Diversified’s well retirement obligations in West Virginia, with the state
designated as a third-party beneficiary, ensuring all Diversified wells in the
state are safely plugged and retired.
* Diversified agrees to retire at least 1,500 wells in the first 20 years as
the Mountain State Plugging Fund is established, increasing to a goal of 250
wells annually.
* Other oil and gas operators may establish similar funds to address the
plugging of other non-producing or existing orphan wells.
The fund aligns West Virginia’s commitment to sustainable economic
development and energy superiority with Diversified’s role as a leading
operator and steward of mature producing assets. The new agreement also builds
on current consent agreements with Diversified Energy.

Next LVL Energy, a subsidiary of Diversified Energy that is headquartered in
Bridgeport, W.Va., will lead asset retirement operations for the Diversified
wells under the fund. With a fleet of more than 20 rigs — with plans to
materially expand over the next 12 months — Next LVL Energy is uniquely
positioned to deliver high-quality, cost-effective plugging services. By the
end of 2025, Next LVL will have plugged 1,335 wells in the Appalachian Basin,
more than any other operator in the region, including an anticipated 360 wells
in 2025 alone, while also performing leak detection, soil remediation, and
habitat restoration.

OneNexus provides enhanced financial assurance for the energy sector that
enables operators to prefund their plugging and abandonment (P&A) expenses.
Through its innovative coverage, OneNexus funds are permanent, secure, and
guaranteed. OneNexus has partnered with Munich Re, a AA-rated global insurance
company, to ensure that funds will be available when needed.

As the world’s largest privately held insurance broker, Lockton partners
with OneNexus to connect energy operators with well-retirement and
decommissioning solutions.

Together, West Virginia and Diversified Energy are setting a model for how
energy-producing states can safeguard the environment while ensuring long-term
economic growth.

For further information, please contact:  

 Diversified Energy Company PLC                                        +1 973 856 2757        
 Doug Kris                                                             dkris@dgoc.com         
 Senior Vice President, Investor Relations & Corporate Communications                         
                                                                                              
 FTI Consulting                                                        dec@fticonsulting.com  
 U.S. & UK Financial Public Relations                                                         



About Diversified 

Diversified is a leading publicly traded energy company focused on natural gas
and liquids production, transport, marketing, and well retirement. Through our
unique differentiated strategy, we acquire existing, long-life assets and
invest in them to improve environmental and operational performance until
retiring those assets in a safe and environmentally secure manner. Recognized
by ratings agencies and organizations for our sustainability leadership, this
solutions-oriented, stewardship approach makes Diversified the Right Company
at the Right Time to responsibly produce energy, deliver reliable free cash
flow, and generate shareholder value.