Diversified Energy has become the largest natural gas well owner in the U.S., over the last two decades, without drilling wells, according to Farm and Dairy.

The company has purchased about 70,000 mostly conventional oil and gas wells across the U.S., with a large concentration in the Appalachian Basin. It owns 7,000 in Ohio, 22,000 in Pennsylvania and 23,000 in West Virginia.

Diversified has been able to drive a profit by keeping older wells producing as long as possible by repairing and maintaining them. It estimates on average, the wells it owns can produce for another 40 or 50 years.

Although the company’s model is very different from other oil and gas companies, it’s been able to profit off of making simple repairs. 

A conventional well, near Caldwell, Ohio, was still producing when Diversified bought it in 2018. However, the pump in the well had been down for about five years, so it was declining and not working efficiently. After swapping out the pump, the well’s production jumped from 1,000 cubic feet of natural gas per day to 3-5,000 cubic feet per day. Additionally, the well site is also producing about three or four barrels of oil each week.

“So, basically, what we spent, probably $6,000 — we’re going to recoup probably $20,000 off of just this well this year,” said Tom Vosick, vice president of operations in Ohio for Diversified, in an interview with Farm and Dairy.

Learn more: Farm and Dairy > Older wells in Appalachia are a major part of Diversified Energy’s strategy