DISCLAIMER AND FORWARD-LOOKING STATEMENTS The information contained in this document (the Presentation) has been prepared by Diversified Energy In furnishing this Presentation, the Company does not undertake or agree to any obligation to…
WHO ARE WE: OPERATOR OF U.S. ONSHORE DEVELOPED ASSETS Appalachian Region: Appalachian Basin A differentiated business model Pennsylvania, West Virginia, Ohio, Kentucky, Virginia, Tennessee focused on: 60% of Production PA…
EXECUTING ON STRATEGIC OBJECTIVES IN 1Q 2023 Achieved 54% Cash Margins(a) (+4 pts vs. FY2022) 1Q23 Adjusted EBITDA of 150 million and Annualized FCF Yield of 37%(b) Creating Sustainable Cash Flows thru Commodity Price Cycles…
CREATING VALUE THROUGH TRANSPARENCY IN SUSTAINABILITY REPORTING 2022 Sustainability and Reporting Highlights Total Recordable Incident Rate 1.77 Safety 1st: Achieved TRIR of 0.73, a 35% reduction from 2020(a) 1.65 35% Reduction Since…
EXTRACTING VALUE ON UNDEVELOPED ACREAGE (ILLUSTRATIVE EXAMPLE) Monetization of economic locations Advantageous Joint Venture 25 million (50/50 split to Oaktree) and 8-12 million carry on future development Accretive opportunity to add…
DELIVERING RECORD PRODUCTION AND RESERVES Central Region Growth Drives Record Production PV10 Value of PDP Reserves per Share(c) 302% Premium to Current Share Price 75 Mboepd of net production added since entry to region PDP…
EXECUTING PROVEN ACQUISITION STRATEGY TO DRIVE VALUE Upstream Midstream 2022 Acquisitions 2022 Acquisitions Improving operating scale and density in the Central Region Enhancing margins and increasing control over product flow Added…
SMARTER ASSET MANAGEMENT PROVIDES ONGOING VALUE Turn acquired idle wells back into production and cash flows RTP Wells 340 wells RTPd in Central Region during 2022 Value Added Workovers Return to Production Typically low-cost, high…
CREATING VALUE ACROSS OPERATING REGIONS West Virginia Well (Hz) Multiple Operating Regions = Multiple Resource Pools Mcf/d Avg. Production Expansion to the Central Region increased the potential for 3,200 Prior Production After…
OPERATIONAL INSIGHTS DRIVEN BY TECHNOLOGY INVESTMENTS Well-Level Data Capture Cloud-Based Infrastructure Real-Time Monitoring Emissions Detection Data + Human interaction of Enables remote access to data, Leverage data…
NEXT LVL ENERGY: SETTING A NEW STANDARD FOR RETIREMENT Differentiated Outlook on Asset Retirement Stewardship from acquisition to retirement ensures sustainable operations for the lifetime of assets Positioned to Lead in Appalachian…
BUILT TO DELIVER STABLE MARGINS THROUGH VOLATILE COMMODITY CYCLES Realizing Consistent 50% Margins Hedge Strategy Sustains Realised Pricing Increases to realized pricing generate stable margins amidst commodity price-driven cost…
STRATEGICALLY LAYERING COMMODITY PRICE PROTECTION Summary Natural Gas Hedging Position Rolling Hedge Coverage Targets(c) Average Hedge Floors in /Mcf(a) % of Annual Production Hedged Open Production Volume 70-90% 1-12 Months 100%…
SIMPLE, LOW-COST, HIGHLY-AMORTIZING STRUCTURE Low, 5% fixed rates provide Liquidity-enhancing long-term ESG-linked Financing(a) reflect cost of capital advantage financing alternative to RBL commitment to sustainability Leverage(b)…
THE FUTURE OF DEC Resilient core business and seasoned management that leverages competencies into attractive opportunities with a track record of turning liabilities into assets and delivering returns Be the consolidator of Own the…
DIVERSIFIED BROKERS Corporate Tennyson Stifel Peel Hunt PO Box 381087 Tennyson Securities Stifel Nicolaus Europe Ltd Peel Hunt LLP Birmingham, Alabama 65 Petty France 150 Cheapside 100 Liverpool Street 35238-1087 (USA) London SW1H 9EU…
Appendix DIV.energy
DIVERSIFIED ENERGY PROFILE LSE: DEC (FTSE250) Hedge strategy reduces sensitivity to commodity price volatility Average Henry Hub Price (/MMBtu) Market and Trading Summary 10 March 2023 6.64 (in millions, except share price) 54%…
DEMONSTRATING OUR COMMITMENT TO SUSTAINABLE OPERATIONS 2022 ESG and Sustainability Highlights Achieved OGMP 2.0 Gold Standard for Emissions Reporting 2023 Emissions Reduction Initiatives 1 of 5 US operators to receive designation in…
HISTORICAL OPERATING EXPENSES BY NATURE 11.15 /Boe (1.86/Mcfe) 10.46 Expanding Margins on Decreased Costs (1. 74/Mcfe) 6% decrease in Total Cash Costs per unit drives 1.69 1.54 margin improvement over sequential quarters 1.51…
AMORTISING DEBT STRUCTURES DRIVE DISCIPLINED REPAYMENT Key Attributes for Diversified Ability to scale financing through additional ABS issuances 232 Long-term hedging provides cash flow stability for consistent repayment…
ILLUSTRATIVE: 50 YEAR COMPLETE PORTFOLIO RETIREMENT SCENARIO 8.0 billion in Free Cash Flows provide 4.8 billion in dividend potential while also repaying all debt outstanding Dividend potential is a 4x and generating sufficient Free…
DRIVING VALUE THROUGH ACCRETIVE ACQUISITIONS Apply industry leading Smart Asset Management (SAM) on larger PDP base without balance sheet stress Appalachia OK Central PA OH WV 2.7 Billion TX LA 22 acquisitions since VA 2017…
ENHANCING OPERATING SCALE AND EFFICIENCIES THROUGH ACQUISITIONS 322 Million 566 Million of Complementary Acquisitions in 2022 Including Tanos Energy II (2023) East Texas Bolt-On ConocoPhillips Midstream Systems Asset Retirement…
GROWTH VIA ACQUISITION WITH LOW-RISK UPSIDE Market Volatility & Dislocation = Opportunity Set Utilise track record of underwriting, More economic to buy reserves which yields low capital buying and managing undervalued expenses,…
COMMODITY DERIVATIVES PORTFOLIO (AS OF 01 MAY 2023) Natural Gas 3.79/Mcf 3.30/Mcf 3.23/Mcf 2023 2024 2025 Annual Summary(a) 85% Hedged 80% Hedged 70% Hedged Natural Gas Financial Derivatives Contracts Natural Gas (MMBtu, /MMBtu)…
GROWING NATURAL GAS EXPORT CAPACITY Clean U.S. natural gas provides energy security to other nations and allows for a global reduction of emissions U.S. LNG Projects Under Construction Once completed, the three highlighted export…
RENEWABLES BUILDOUT REQUIRES NATURAL GAS BACKSTOP Texas Hourly Power Generation (December 23, 2022) RELIABILITY OF BASE LOAD Natural Gas supported peak demand needs in Texas during Winter Storm Elliot Stepped up to fill 70%…
INCREASED NATURAL GAS USAGE DRIVES LOWER EMISSIONS U.S. CO2 emissions declined 35% with increased natural gas power generation U.S. Electric Power Generation CO2 Emissions vs. Natural Gas Market Share Coal to Natural Gas…
MEANINGFUL GLOBAL ENERGY DEMAND FROM FOSSIL FUELS Natural Gas will be the most utilized fuel by 2043 and be a 26% share of energy demand in 2050 Global natural gas demand to increase by 36% Global Primary Energy Power Demand Trends…
WE SHARE A COMMON ENVIRONMENT 2020 CO2 Emissions (Gt) Need to address International Emissions: 2017 2020 Chinas emissions have grown meaningfully since 1990 including 7% since 2017 +7% 11.7 U.S. represents only 18% of the five top…
Supplemental Information For the Year Ended 31 December 2022 DIV.energy
AUDITED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2022) CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Year-Ended 31 December 2022 31 December 2021 Revenue 1,919,349 1,007,561 Operating expense…
AUDITED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2022) CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 31 December 2022 31 December 2021 31 December 2022 31 December 2021 ASSETS EQUITY AND LIABILITIES Shareholders' equity:…
AUDITED FINANCIAL STATEMENTS (FOR THE YEAR ENDED 31 DECEMBER 2022) CONSOLIDATED STATEMENTS OF CASH FLOW Year Ended Year Ended 31 December 2022 31 December 2021 31 December 2022 31 December 2021 Cash flows from investing activities:…
ALTERNATIVE PERFORMANCE METRICS (FOR THE YEAR ENDED 31 DECEMBER 2022)(UNAUDITED) Adjusted EBITDA and Adjusted EBITDA per Share As used herein, EBITDA represents earnings before interest, taxes, depletion, depreciation and amortisation.…
ALTERNATIVE PERFORMANCE METRICS (FOR THE YEAR ENDED 31 DECEMBER 2022)(UNAUDITED) Net Debt and Net Debt-to-Adjusted EBITDA As used herein, Net Debt represents total debt as recognised on the balance sheet less cash and restricted cash.…
ALTERNATIVE PERFORMANCE METRICS (FOR THE YEAR ENDED 31 DECEMBER 2022)(UNAUDITED) Total Revenue, Inclusive of Hedges and Adjusted EBITDA Margin As used herein, Total Revenue, Inclusive of Hedges, includes the impact of derivatives settled…
ALTERNATIVE PERFORMANCE METRICS (FOR THE YEAR ENDED 31 DECEMBER 2022)(UNAUDITED) Free Cash Flow As used herein, Free Cash Flow represents net cash provided by operating activities less expenditures on natural gas and oil properties and…
REVENUE RECONCILIATION (NON-IFRS) (FOR THE YEAR ENDED 31 DECEMBER 2022)(UNAUDITED) Per Unit FY21 1Q22 2Q22 3Q22 4Q22 FY22 Units FY21 1Q22 2Q22 3Q22 4Q22 FY22 Production: Natural gas (MMcf) 234,643 62,419 64,979 64,344 63,854…
EXPENSE RECONCILIATION (NON-IFRS) (FOR THE YEAR ENDED 31 DECEMBER 2022)(UNAUDITED) Per Unit FY21 1Q22 2Q22 3Q22 4Q22 FY22 Units FY21 1Q22 2Q22 1H22 3Q22 Q4 FY22 Production: Natural gas (MMcf) 234,643 62,419 64,979 64,344 63,854…
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