DISCLAIMER The information contained in this document (the Presentation) has been prepared by Diversified Energy Company PLC (Diversified or the Company). This Presentation is not to be copied, published, reproduced, distributed or…
COMPANY INFORMATION For the latest news and financial information, please visit www.div.energy About Diversified Energy Company PLC Diversified Energy (DEC) is a leading, independent energy company engaged in Market and Trading…
1H2021 HIGHLIGHTS ACCRETIVE ACQUISITIONS FREE CASH GENERATION 342 Million(a) Central Region provides platform to replicate success in Appalachia Significant free cash flow provides tangible returns through Dividends 117…
Operations Highlights
ADVANCING ESG INITIATIVES Fundamentally Committed to Good ESG is Good Business Environmental Social Governance Committed to emissions reduction and Committed to supporting our workforce Committed to transparency and proven…
INDUSTRY-LEADING ANNUAL PRODUCTION DECLINES Differentiated Strategy and Performance Minimal Capex to Maintain Production Disciplined focus on the operation of existing wells emphasises Mature PDP wells generate stable, consistent cash…
DEPLOYING CONSOLIDATION STRATEGY IN CENTRAL REGION Integrate Optimise Consolidate Immediate Goals On-board Central Region employees and Empower retained personnel to apply DECs Further develop operating and market integrate processes…
PRODUCTION RECORD LEVELS Avg. Daily Net Production Acquisitions increase pro 1H21 Production Sets New Highs(c) (MBoepd) forma production by 30%(b) Average daily output of 106 MBoepd and June 2021 exit rate Low base declines, SAM and…
CREATING VALUE THROUGH VERTICAL INTEGRATION Midstream Integration Creates a Control Premium Flow Pricing Revenue Expense Assurance Optimisation Diversification Optimisation Revenue Optimisation Midstream Capital Project Identified…
Financial Highlights
GROWING REVENUE ON STABLE, IMPROVING REALISED PRICE Hedging Drives Consistency in Realised Pricing Allowing for Steady Growth of Adj. Revenue(a) Realised Price (Hedged) Realised Price (Unhedged) 106 104 16.90 15.50 15.75 14.82…
HEDGE PROGRAMME PROTECTS DIVIDENDS & DEBT PAYMENTS Protect Pricing, Limit Volatility Improved Forward Curve Creates Value Capture Opportunity Historical hedging programme has generated Outlook generates potential to capture additional…
IMPROVED PRICE OUTLOOK BENEFITS FUTURE CASH FLOWS Locking In Cash Flows From the Improved Forward Curve Pricing Positively Impacts Value of PDP Reserves Rolling Hedge Coverage Targets Capture Prices Over Time Long tenor hedges create…
OPPORTUNITY TO EXPAND HEALTHY MARGINS Higher Prices + Lower Costs = Enhanced Margins Poised to Replicate Appalachian Success in the Central Region Higher Price Realisations Realised Price 17.35 Cash Margin Central Region…
CONTINUOUSLY REDUCING LEVERAGE Focused on Low Leverage Expanding Credit Facility Optimising Cost of Capital Net Debt/Adj. EBITDA of 1.9x(a) well below Post-acquisition upsizing of RBL Facility Weighted average interest rate of 4.8%…
SIGNIFICANT CASH GENERATION ON LOW CAPITAL INTENSITY High Cash Margins Generate Substantial Returns Dividends Paid to Shareholders 62 301 Million Reliable distributions supported by positive cash profile 151 117 Available for…
COMMITTED TO VALUE GENERATION AND RETURN OF CAPITAL Deploy Smarter Asset Management to sustain cash generation from portfolio Maximise Impact of low-decline, stable production assets of Existing Assets Develop maximum value of Central…
DIVERSIFIED BROKERS Corporate Tennyson Stifel PO Box 381087 Tennyson Securities Stifel Nicolaus Europe Ltd Birmingham, Alabama 65 Petty France 150 Cheapside 35238-1087 (USA) London SW1H 9EU London EC2V 6ET www.div.energy Jim…
Appendix
COMMODITY DERIVATIVES PORTFOLIO (CONSOLIDATED) As of 25 October 2021 (NATURAL GAS AMOUNTS PRESENTED IN MMBTU(c)) Natural Gas Fi na nci a l Deri va ti ves Contra cts Natural Gas (MMBtu, /MMBtu) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23…
SMARTER ASSET MANAGEMENT PILOTS AND INITIATIVES Small Victories Add Up To BIG WINS Through Daily Stewardship Of Operated Assets Successful pilots have potential for application across the larger portfolio for compounding results…
SAFELY & SYSTEMATICALLY RETIRING 300 WELLS SINCE 2018 Plugging Progress in 2021 Inaugural Successes for Internal Well-Retirement Team Cumulative body of work through 1H2021 continues to 14 wells retired by DEC compared to 12 by…
VALUING THE ASSET RETIREMENT PROGRAMME PV Analysis Bridging to the Balance Sheet ARO(a) Rollforward Net Cash Flow (Field Level) Asset Retirement Obligation 48 4:1 (1) 6,700 2,500 1,700 69 Undiscounted(b) PV10…
20 YEARS OF SUCCESSFULLY EXPANDING THE BUSINESS Appalachian Basin A History of Growth by the Numbers(a) +70% dividends per share +39x daily production +27x PDP reserves +24x Enterprise Value 116,000 105,000 95,000 70,000…
THE DIVERSIFIED DIFFERENCE PERCEPTION REALITY Cash wise Cash deficient Cash used to paydown LIBOR+ revolving credit facility rather than with a limited cash position on the balance sheet generating minimal earnings…
Supplemental Information Tapstone Acquisition
UNAUDITED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Unaudited Audited Six Months Ended Year Ended 30 June 2021 30 June 2020 31 December 2020 Revenue 323,316 184,878 408,693…
UNAUDITED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Unaudited Audited Unaudited Audited 30 June 2021 31 December 2020 30 June 2021 31 December 2020 ASSETS EQUITY AND LIABILITIES Non-current assets:…
UNAUDITED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF CASH FLOW Unaudited Audited Unaudited Audited Six Months Ended Year Ended Six Months Ended Year Ended 30 June 2021 30 June 2020 31 December 2020 30 June 2021 30 June 2020 31…
NON-IFRS & OTHER RECONCILIATIONS REVENUE RECONCILIATION Per Unit 1Q20 2Q20 1H20 3Q20 4Q20 FY20 1Q21 2Q21 1H21 Units 1Q20 2Q20 1H20 3Q20 4Q20 FY20 1Q21 2Q21 1H21 Production: Natural gas (MMcf) 45,391 48,652 94,043 53,935 51,689…
NON-IFRS & OTHER RECONCILIATIONS EXPENSE RECONCILIATION Per Unit 1Q20 2Q20 1H20 3Q20 4Q20 FY20 1Q21 2Q21 1H21 Units 1Q20 2Q20 1H20 3Q20 4Q20 FY20 1Q21 2Q21 1H21 Production: Natural gas (MMcf) 45,391 48,652 94,043 53,935 51,689…
ALTERNATIVE PERFORMANCE METRICS (UNAUDITED) DEC uses APMs to improve the comparability of information between reporting periods and to more accurately evaluate cash flows, either by adjusting for uncontrollable or non-recurring factors,…
ALTERNATIVE PERFORMANCE METRICS (UNAUDITED) Hedged Adjusted EBITDA and As used herein, EBITDA represents earnings before interest, taxes, depletion, depreciation and amortisation. Hedged Adjusted EBITDA includes adjustments for…
ALTERNATIVE PERFORMANCE METRICS (UNAUDITED) Net Debt and Net Debt-to-Hedged As used herein, Net Debt represents total debt as recognised on the balance sheet less cash and restricted cash. Total debt includes DECs current portion of…
ALTERNATIVE PERFORMANCE METRICS (UNAUDITED) Adjusted Total Revenue As used herein, Adjusted Total Revenue includes the impact of derivatives settled in cash. The Directors believe that Adjusted Total Revenue is a useful measure because…
ALTERNATIVE PERFORMANCE METRICS (UNAUDITED) Total Cash Cost per Boe Total Cash Cost per Boe is a metric which allows us to measure the cumulative operating cost it takes to produce each Boe. This metric includes operating expense and…
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