Right Company, Right Time A Solutions Based Approach to Responsibly Produce Energy & Create Shareholder Value March 2025
The information contained in this document (the Presentation) has been prepared by Diversified Energy Forward-looking statements speak only as of their date and neither the Company nor the Group nor any of its respective Company PLC…
WHO ARE WE: OPERATOR OF U.S. ONSHORE DEVELOPED ASSETS Appalachian Region: Appalachian Investment Highlights 35% of Production Basin Growth Through Accretive Acquisitions Total Combined Production: Production has increased 30x since…
THE PUBLICLY TRADED CHAMPION OF THE PDP SUBSECTOR Dynamic Multi-Basin Rollup Strategy Demonstrated Commitment to Returns Extensive operational footprint establish platform to Returns-focused model prioritizes Free Cash Flow for capture…
RELENTLESS FOCUS 2024 Average Production of 791 MMcfe/d December 2024 average production of 864 MMcfe/d ON INCREASING VALUE Maintained consolidated production decline of 10% per year 2024 Operating Highlights 2024 Total Revenue,…
COAL MINE METHANE ADDING CASH FLOW, EXPANDING MULTIPLE Adding Revenue Streams Expanding Opportunity Set Leveraging Existing Assets Creating Net Zero Gas Alternative Energy Credits (AEC) Diversified is actively engaging Suitability of…
STRATEGIC PARTNERSHIP GROWS COAL MINE METHANE OPPORTUNITY Accelerated Data Center Deployment Supplying up to 360 megawatts of electricity in Kentucky, Virginia and West Virginia Expected to provide on-site, continuous power…
2024 ACTION PLAN EXECUTING ON OUR STRATEGY Systematic Debt Reduction Strategic Share Repurchases 205 million 20 million of debt principal payments value of shares repurchased(a) 3% of Shares Outstanding Fixed per-share…
Disciplined Strategy Positioned to Take Advantage of Opportunities and Navigate Commodity Price Cycles
DELIVERING ON A DE-RISKED PRODUCTION MODEL Commodity Price Risk Diversifieds business model reduces Dynamic hedging sustains realized pricing and delivers exposure to typical industry risk factors consistent cash margins Oil & Gas…
A DISTINCTIVELY CAPITAL-EFFICIENT BUSINESS MODEL 44% 35% Annual Production Decline (%) Peer Average 33% 30% 25% 26% 22% 24% 10% DEC Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Capital 11% 73% 57% 58% 91% 83%…
BUILT TO DELIVER STRONG CASH MARGINS IN ANY PRICE ENVIRONMENT 6.64 Margin Enhancement Through Acquisition of Pipeline Infrastructure 54% Acquired Summit pipeline assets enhance access 53% 53% 53% 50% 50% 51% to premium-priced…
COMMITTED TO DELIVERING A FOUNDATION OF FREE CASH FLOW 42% 37% 29% Nine months ended September 30, 2024 Free Cash Flow Conversion 18% 8% 7% (3)% Diversified leads Natural Gas E&Ps in Free Cash Flow conversion with 5x…
LEVERAGE APPROPRIATE & TRACKS TO BUSINESS MODEL ATTRIBUTES Leverage Profile Typical of Consistent Generation of Strategy Characterized by High Margin Sectors Meaningful Cash Flow Low Capital Intensity 5.7x 585 million of…
STRATEGIC RATIONALE FOR ABS FINANCINGS Diversifieds long-life, low-decline and high-quality reserves Provides stable and predictable cash flows for investors ABS Benefits to Diversified An established track record of stable asset…
UNLOCKING VALUE OF UNDEVELOPED ACREAGE 9.5 Million Net Acres within Operating Footprint Significant Oklahoma Leasehold Position 99.9% of all acreage currently held-by-production with With 23 million of land sales recorded in 2024(b)…
INNOVATIVE ASSET SALE PROVIDES LIQUIDITY AND REDUCES DEBT Illustrative Liquidity Enhancement Industry-First Transaction 90 million Unlocks Value of Assets Series1 Liquidity Enhancement in liquidity uplift 30 First-in industry…
STRENGTHENING VALUE CHAIN WITH LONG-LIFE INFRASTRUCTURE ASSETS Strategic Purchase in April 2022 BLACK BEAR Processing Facility Acquired for 10 million includes two processing DeSoto Parish, LA (central region) Cotton Valley and…
REALIZING GEOGRAPHIC BENEFITS WITH LNG EXPORTER Inaugural Contract Highlights Opportunity Set Positioned for Gulf Coast LNG Exports Proximity of assets to Gulf Coast makes Diversified an ideal partner to supply natural gas to global…
Acquisition Update Transactions Increase Scale and Improve Margins
GROWTH IN SCALE THROUGH SUCCESSFUL ACQUISITION STRATEGY (a) 30x Growth in Production Daily Production (MMcfe/d) 1,20 2 811 821 711 599 50 9 246 39 2024 2017 2018 2019 2020 2021 2022 2023 2025 pro forma Acquisition…
CORPORATE INFRASTRUCTURE OUR VALUABLE ADVANTAGE Unique Infrastructure PLATFORM Built to be Accretive Consolidator Field Operations Midstream/Marketing Corporate Emissions Reduction Well Retirement Significant Operating Scale Top…
GROWTH THROUGH LOW-RISK, LOW-DECLINE PRODUCTION Oaktree Capital Mgmt. 410 Million Adding Operating Scale in Central Region More than 350 MMcfepd of production, inclusive of recent Net Purchase Price 377 million 3.0x acquisitions,…
SUMMIT ACQUISITION GROWS COAL MINE METHANE (CMM) REVENUES Uniquely Positioned to Generate CMM Revenues CMM Revenues Set to Triple in 24 Months (USD Millions per Year) Suitability of owned assets reduces need for up-front capex or…
A COMPELLING OPPORTUNITY: MAVERICK NATURAL RESOURCES Number of Operated Basins Current Production (MMcfe/d)(a) Multi-Dimensional Value Overlap in Anadarko and Ark-La-Tex; Entry to Permian Increases production by 40%, liquid weighting…
ACQUISITION DRIVES SIGNIFICANT FREE CASH FLOW GROWTH Complementary Cash Flow Profiles Adjusted Free Cash Flow(a) Robust and sustainable cash flow profiles from Diversified (USD Millions) and Maverick provide platform for continued…
ADDING ATTRACTIVE UNDEVELOPED OPTIONALITY IN PORTFOLIO Combined Western Anadarko Position Creating Strategic Optionality in Capital Deployment Total combined undeveloped acres including the attractive Cherokee interval provides…
MERGER MANIA ACTIVITY ACCELERATING IN ENERGY SECTOR Public-to-Public Transactions Corporate Transactions Dominating Landscape Upstream equities have outperformed WTI spot prices by 32% since 2022 YTD US E&Ps YTD up 3% vs. UK E&Ps…
New Life for Existing Producing Assets Implementing Innovate Strategies and Promoting Technological Improvements
MODERNIZING OPERATIONS THROUGH TECHNOLOGY Modern Field Developing a Scalable Platform Management Philosophy with Low Total Cost of Ownership Common Systems enhance process efficiency, reliability Cloud First / Wireless First…
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 visualization…
ENHANCING CASH FLOWS WITH SMARTER ASSET MANAGEMENT Supply Contracts with LNG Exporters Wholly-Owned Processing Facilities Establishes premium to regional pricing Eliminates third-party processing costs Supplements robust hedging…
FOCUS ON SCALE & VERTICAL INTEGRATION YIELDS COST EFFICIENCIES Adjusted Operating Cost per Unit High Working Interest Benefits Cost Control (/Mcfe) PDP strategy focuses on efficient operation of existing assets through implementation…
QUICKLY ESTABLISHING POST-ACQUISITION EFFICIENCIES Leveraging Scale for Meaningful G&A Efficiencies Adjusted EBITDA Efficient administrative platform is able to quickly scale with Twelve Months Ended September 30, 2024 growth in…
A DIFFERENTIATED STRATEGY FOCUSED ON EXISTING PRODUCTION Smarter Asset Management (SAM) Drives Ongoing Value Daily operational efforts increase efficiencies and reduce environmental impact The Result of a Unique Focus on Existing…
SMARTER ASSET MANAGEMENT IN ACTION Central Region Workovers Improve Production Case Study: Impact of 2023 Workovers Includes capitalized and expensed maintenance Central Region, Capitalized and Expensed High-return projects pay back in…
CREATING VALUE ACROSS OPERATING REGIONS West Virginia Well (Hz) Multiple Operating Regions = Multiple Resource Pools Mcf/d Expansion to the Central Region increased the potential for 3,200 Prior Production After Optimisation…
Priorities & Performance Unlocking the Path to Emissions Improvement and Measurable Impact
CONTINUED COMMITMENT TO STRONG SUSTAINABILITY PRACTICES GOLD Disclosed State-by-State Enhanced Biodiversity & Published 2023 ESG 2023 Best ESG Report Achieved AA Rating Awarded OGMP 2.0 Economic Analysis Climate Risk Disclosures…
DEPLOYED METHANE DETECTION TECHNOLOGY Teledyne FLIR Si124(a) an industrial acoustic imaging Teledyne FLIR GT-44 a handheld detection device We are leaders in methane detection camera capable of locating capable of detecting leaks…
INVESTING IN EMISSIONS RESOURCES: FIXED DETECTORS Deploying Continuous Monitors Technology Nubo Sensirion Qube Primary Use Continuous Leak Detection Continuous Leak Detection & Measurement Measurement Range 2 ppm plus 0.1 scfh…
2023 FIELD TRIALS - NEW TECHNOLOGY: LASER OPTICAL GAS IMAGING (OGI) Working collaboratively with states to address federal requirements Held technical meetings in 2023 Conducted multiple field trials in 2023 with efficient Laser OGI…
NEXT LVL ENERGY: SETTING A NEW STANDARD FOR RETIREMENT Differentiated Outlook on Asset Retirement Stewardship from acquisition to retirement ensures Positioned to Lead in sustainable operations for the lifetime of assets Appalachian…
WORKING TO MAKE ASSETS OUT OF LIABILITIES Energy Transition Opportunities Expansion of retirement options leveraging CCUS Carbon Credits Repurposing assets without the need to retire Strategically timed retirement of Commercial…
Powerful Path Forward for 2025 and Beyond The Only Publicly Traded Champion of the PDP Subsectori
CHANGING THE MINDSET OF MODERN PRODUCTION MANAGEMENT Diversified IS Diversified IS NOT A responsible steward of PDP assets which leverages technology A negligent operator of aging properties that disregards and scale to enhance…
AND WE CAN DELIVER RESULTS TO MULTIPLE STAKEHOLDERS Generation of High Cash Margins Reduction of Methane Emissions Modern field management drives efficient operations Every molecule retained increases sale volumes PDP strategy at…
BUILDING A STRATEGIC, RESILIENT ENERGY PRODUCER Scaling a Differentiated Business Model: Right Company at the Highly accretive & strategic acquisitions enhance margins and unlock potential for Right Time.. cost synergies proving…
A POWERFUL STEP FORWARD- 2025 COMBINED COMPANY OUTLOOK 2025 Guidance Range(a) 2025 Pro Forma Commentary(b) Low High Total Production (Mmcfe/d) 1,050 1,100 Pro Forma midpoint production guidance of % Liquids 25% 1,150 Mcfe/d…
Appendix
COMMODITY DERIVATIVES PORTFOLIO (AS OF MARCH 18, 2025) Natural Gas 2025 3.57/Mcf 2026 3.44/Mcf 2027 3.40 Mcf Annual Summary(a) Natural Gas Financial Derivatives Contracts Natural Gas (MMBtu, /MMBtu) 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26…
ROBUST MARGINS IN ANY PRICE ENVIRONMENT Total Revenue, Inclusive of Hedges Adjusted Operating Cost per Unit Hedged to Maintain Pricing 2024 hedge settlements of 151 Mn mitigated commodity price impact 53% 51% 1,024 Mn Cash Margin…
SIGNIFICANT EQUITY VALUE ASSOCIATED WITH AMORTIZING DEBT Gross Debt PV-10 Comparison of Gross Debt to PV-10 Value Instrument (USD Millions) 12/31/2024 12/31/2024 Credit Facility 284.4 779.0 3,320 205% ABS I 80.2 306.0 ABS II…
SELECT METRICS FOR MAVERICK NATURAL RESOURCES (AS OF DECEMBER 31,2024) For the Three Months Ended December 31, 2024 Average Daily Production (MMcfe/d) 359 For the Twelve Months Ended (000s USD) December 31, 2024 Net Income…
Supplemental Financials For the Year Ended December 31, 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Audited Year Ended Year Ended December 31, 2024 December 31, 2023 Revenue 794,841 868,263 Operating expense (428,902) (440,562) Depreciation, depletion and amortization (256,484)…
CONSOLIDATED BALANCE SHEET Audited Audited December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 ASSETS EQUITY AND LIABILITIES Non-current assets: Shareholders' equity: Natural gas and oil properties, net 2,905,702…
CONSOLIDATED STATEMENT OF CASH FLOWS Audited Audited Year Ended Year Ended Year Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Cash flows from operating activities: Cash flows from investing…
ALTERNATIVE PERFORMANCE METRICS Adjusted EBITDA As used herein, EBITDA represents earnings before interest, taxes, depletion, depreciation and amortization. adjusted EBITDA includes adjusting for items that are not comparable…
ALTERNATIVE PERFORMANCE METRICS Net Debt and As used herein, net debt represents total debt as recognized on the balance sheet less cash and restricted cash. Total debt includes our borrowings under the Credit Facility and borrowings…
ALTERNATIVE PERFORMANCE METRICS Total Revenue, Inclusive of Settled Hedges and As used herein, total revenue, inclusive of settled hedges, includes the impact of derivatives settled in cash. We believe that total revenue, inclusive of…
ALTERNATIVE PERFORMANCE METRICS Adjusted Operating Cost per Boe Adjusted operating cost per Mcfe is a metric that allows us to measure the direct operating cost and the portion of general and administrative cost it takes to produce each…
REVENUE RECONCILIATION (NON-IFRS) (UNAUDITED) Per Unit 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY2024 Units 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY2024 Production: Natural gas (MMcf) 63,815 68,053 63,114 61,396 256,378…
EXPENSE RECONCILIATION (NON-IFRS) (UNAUDITED) Per Unit 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY2024 Units 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY2024 Production: Natural gas (MMcf) 63,815 68,053 63,114 61,396 256,378…
Corporate 1600 Corporate Drive Birmingham, Alabama 35238-1087 (USA) div.energy Douglas Kris Wren Smith Senior Vice President Senior Manager Investor Relations & Investor Relations Corporate Communications dkrisdgoc.com…
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