Rusty Hutson thrives on unwanted upstream assets—primarily conventional gas wells in decline. And be buys in bulk. The founder and CEO of Ala.-based Diversified Energy has carved out a niche among its fellow producers, using a playbook that’s made the company a rock star and replicating its success from the Marcellus to new territory in La., Texas, and Okla.

Reese Energy Consulting today is following the latest from Diversified, which owns the nation’s largest number of conventional wells—as in tens of thousands—but neither drills nor fracs. It doesn’t have to. The company has found its bread freshly baked and buttered by snapping up low-risk, low-cost, long-life gas wells that offer another 40-50 years of life, then retiring them responsibly.

As you might surmise, replenishing inventory is vital to Diversified’s business model and success. Since its IPO in 2017, Diversified has made 24 acquisitions, shelling out a modest $2.6 billion, and going whole hog into the Haynesville, Cotton Valley, Barnett, Eagle Ford, and Anadarko in 2021.

Now comes acquisition 25 of Okla.-based Canvas Energy. The $550 million cash-and-equity deal expands Diversified’s Okla., position to 1.6 million net acres and includes undeveloped acreage the company might look to sell. Acreage that could be Diversified’s—dare we say—unwanted.