Kimmeridge Publishes White Paper: "Charting a Path to Net Zero Emissions For Oil & Gas Production"

NEW YORK and DENVER, Sept. 10, 2020 /PRNewswire/ -- Kimmeridge Energy Management Company, LLC ("Kimmeridge" or the "Firm"), a private equity firm focused on upstream energy, today published a white paper entitled, "Charting a Path to Net Zero Emissions for Oil & Gas Production." This is the second white paper published by Kimmeridge focused on reforming the US E&P sector, following the release of "Preparing the E&P Sector for the Energy Transition: A New Business Model" in February.

Climate change represents a long-term threat to society and the Energy sector faces increased scrutiny for its contribution to it. Many have called for divestment from the sector but avoiding the sector does little to improve the environment. The White Paper focuses on what the US E&P industry can do to materially lower the emissions intensity of producing oil and gas, how companies can align their environmental strategy with the Paris Agreement, and the role of corporate governance in effectuating change.

Ben Dell, Founder and Managing Partner of Kimmeridge, said, "As long as the world remains reliant on the energy delivered by fossil fuels, investors have a responsibility to stay engaged and ensure that E&P companies are producing oil and gas as efficiently, safely and as environmentally friendly as possible."

Kimmeridge will continue to advocate for change in the sector through its investments, urging companies to adopt the following five key principles with an eye towards making the E&P sector more sustainable and, once again, investable over the long-term.

1. Eliminate routine flaring by 2025
2. Reduce US methane intensity below 0.2% of gas production by 2023
3. Reduce total upstream GHG intensity by 50% by 2030
4. Pursue routine monitoring and independent verification of emission levels
5. Align reporting with SASB standards and adopt all 11 TCFD recommended disclosures by 2022

Andrew Baxter of the Environmental Defense Fund, a technical reviewer on the paper, said, "This report contains powerful ideas for E&P companies to pursue a net zero strategy, where a commitment to verifiable data and transparent reporting are keys to success. Investors and operators alike can use this paper as they look to prepare their portfolios and businesses for a low carbon future."

Mark Viviano, Head of Public Equities at Kimmeridge, said, "As the world transitions to a low carbon future, the upstream oil and gas business must evolve and address its own environmental deficiencies. The leading E&P companies of tomorrow will adopt a business model that is aligned with the energy transition through lower reinvestment rates while charting a path towards net zero emissions in their direct operations. With management and boards compensated to maintain the status quo, few will embrace the necessary changes without investor pressure. This only underscores the need for engagement over divestment."

To view more of Kimmeridge's research and thought leadership, please visit http://kimmeridge.com/research-archive/.

About Kimmeridge

Founded in 2012 by Ben Dell, Dr. Neil McMahon and Henry Makansi, Kimmeridge is a private equity firm focused on making direct investments in unconventional oil and gas assets in the U.S.  The Firm is differentiated by its direct investment approach, deep technical knowledge, active portfolio management and proprietary research and data gathering.  In addition to its New York headquarters, Kimmeridge maintains a fully-staffed, in-house operating and geology team in Denver, with experience across all major upstream functions and disciplines.  For additional information on Kimmeridge and its proprietary research, please visit www.kimmeridge.com.

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Nothing herein is designed to be a recommendation to purchase or sell any security, investment product or vehicle, including any investment products managed or sponsored by Kimmeridge or its affiliates. Investing in any sector or product, including the E&P sector, involves significant risks.

SOURCE Kimmeridge Energy