Diversified Energy Company · NYSE:DEC
Diversified Energy — Investor Presentation (August 2025)
51 slides from Diversified Energy's investor presentation, August 2025
Slide 1: Right Company, Right Time
Right Company, Right Time A Sol ut ions B ase d Appr oac h t o R es pons ib ly Pr oduc e Ener g y & C re ate Sha re hold er Val ue AU GU ST 2025
Slide 2: August
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 (“Diversified” or the "Company”). This Presentation is for genera
Slide 3: Who Are We: Operator of U.S. Onshore Developed Assets
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 2017 IPO(c); ~$585mm of acquisitions in 2024 ~1.15 Bcfe/d(a) at
Slide 4: The Publicly Traded Champion of the PDP Subsector
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 value by acquiring assets at attractive debt reduction, dividend
Slide 5: Multi-Dimensional Focus on Optimization Drives Results
MULTI-DIMENSIONAL FOCUS ON OPTIMIZATION DRIVES RESULTS Demonstrated Path of Accretive Growth Second Quarter Financial & Operating Highlights Production Mmcfe/d 5-year Growth Production Exit Rate of 1,135 MMcfe/d 1149 • 2Q 2025 avg. production of 1,149 MMcfe/d 769 95% • Maintained consolidated produc
Slide 6: Executing on Our Strategy - Creating Value in 1H 2025
EXECUTING ON OUR STRATEGY- CREATING VALUE IN 1H 2025 Total stakeholder returns since 2017 IPO include ~$2.0 billion in shareholder returns and debt principal payments Systematic Debt Reduction Strategic Share Repurchases $130 million ~$43 million of debt principal payments value of shares repurchase
Slide 7: Marrying Attractive Assets with Risk-Adjusted Capital
MARRYING ATTRACTIVE ASSETS WITH RISK-ADJUSTED CAPITAL Non-Dilutive Financing & Surety of Capital Shale Maturation Creates Compelling Acquisition Market Maintain capital flexibility, support long-term growth, and Growth-oriented E&Ps and Private Equity sponsors recycling preserve shareholder value wh
Slide 8: Appalachia at the Crossroads of Energy and AI
APPALACHIA AT THE CROSSROADS OF ENERGY AND AI Bruce Mansfield 2025 Energy and Innovation Summit - Pittsburgh, PA Datacenter Senator Dave McCormick hosted POTUS, regulators, and CEOs of the largest Energy and Data Center corporations, which outlined significant investment in the region DEC Asset Map
Slide 9: Disciplined Strategy
Disciplined Strategy Positioned to Take Advantage of Opportunities and Navigate Commodity Price Cycles
Slide 10: Delivering on a De-Risked Production Model
DELIVERING ON A DE-RISKED PRODUCTION MODEL Commodity Price Risk Diversified’s business model reduces ✓ Dynamic hedging sustains realized pricing and delivers exposure to typical industry risk factors consistent cash margins Oil & Gas Development Risk Spectrum High Risk Low Risk Development/Operation
Slide 11: A Distinctively Capital-Efficient Business Model
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% 110% 64% Intensity Superior Capital Intensity Enhanced Free Cash Flows Greater Value C
Slide 12: Leverage Appropriate & Tracks to Business Model Attributes
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 acquisitions in 2024, primarily debt-financed Net Debt / Adj. EBITDA (x) 4.8x
Slide 13: Strategic Rationale for ABS Financings
STRATEGIC RATIONALE FOR ABS FINANCINGS Diversified’s 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 performance Key Attributes for Investors Characteristics of Diversifi
Slide 14: Oklahoma Joint Development Creating Value & Optionality
OKLAHOMA JOINT DEVELOPMENT CREATING VALUE & OPTIONALITY Drilling Activity – Cherokee Formation Attractive Well Level Economics ‘25 program IRR: ~60% - IP: 960 BOPD/ 3,872 MCFD Average 2025 CLL: 11,121 ft Average gross D&C: $11.3 MM (Average $/CLL: $1,016) Incremental Volume with Manageable Capex 45,
Slide 15: Coal Mine Methane - Adding Cash Flow, Expanding Multiple
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 owned infrastructure Complementary to our provide high-margin
Slide 16: Strategic Partnership Grows Coal Mine Methane Opportunity
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 generation ✓ Scalable with demand ✓ Secures data center uptime even in vol
Slide 17: Acquisition Update
Acquisition Update Transactions Increase Scale and Improve Margins
Slide 18: Growth in Scale Through Successful Acquisition Strategy
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 2017 2018 2019 2020 2021 2022 2023 2024PF 2024 2017 2018 2019 2020 2021 2022 2023 2025 pro forma Acquisition History IPO on AIM Uplist to Entry to Initia
Slide 19: Corporate Infrastructure... Our Valuable Advantage
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 25 Natural Gas Marketer Production Support Suite Deploying Cutting Edg
Slide 20: A Compelling Opportunity: Maverick Natural Resources
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 by ~70% Liquids Production Creation 5 1,202 4 851 3 ✓ Commodity D
Slide 21: Acquisition Drives Significant Free Cash Flow Growth
ACQUISITION DRIVES SIGNIFICANT FREE CASH FLOW GROWTH Complementary Cash Flow Profiles Commodity Diversification and Hedging Robust and sustainable cash flow profiles from Balanced weighting of gas and liquids revenues, Diversified and Maverick provide platform for combined with geographical diversif
Slide 22: Post-Acquisition Synergies Creating Strong Outcomes
POST-ACQUISITION SYNERGIES CREATING STRONG OUTCOMES Leveraging Scale for Meaningful G&A Efficiencies Pipeline Deal Highlights Benefits of Scale Full field level integration completed in second quarter; technology & administrative expected by end of third quarter Deal Details Diversified received two
Slide 23: New Life for Existing Producing Assets
New Life for Existing Producing Assets Implementing Innovate Strategies and Promoting Technological Improvements
Slide 24: Modernizing Operations Through Technology
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 eliminate technical debt, and improves data collection, warehousing and
Slide 25: Operational Insights Driven by Technology Investments
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 and Invest in emissions detection wellhead LTE connectivity, elimin
Slide 26: Enhancing Cash Flows with Smarter Asset Management
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 strategy ✓ Creates supplemental revenue streams Inaugural LNG exp
Slide 27: Smarter Asset Management Optimizing Asset Performance
SMARTER ASSET MANAGEMENT OPTIMIZING ASSET PERFORMANCE Focused Workover Program Operating ~2 workover rigs in the central region for maintenance as well as rod lift installs to optimize production Disciplined Approach Managing Costs DEC’s consistent workover program has allowed workovers to beat anti
Slide 28: Diamond in the Rough
DIAMOND IN THE ROUGH Strategic Purchase in April 2022 Acquired for $10 million includes two processing plants and FERC BLACK BEAR Processing Facility DeSoto Parish, LA (central region) regulated NGL pipeline Cotton Valley and Haynesville Basins Increased Processing Capacity Recently completed upgrad
Slide 29: Priorities & Performance
Priorities & Performance Unlocking the Path to Emissions Improvement and Measurable Impact
Slide 30: Continued Commitment to Strong Sustainability Practices
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 Performance Objectives from ESG Awards from MSCI Analytics Gold Stand
Slide 31: Achieved 2030 Target for Scope 1 Methane Emissions Intensity
ACHIEVED 2030 TARGET FOR SCOPE 1 METHANE EMISSIONS INTENSITY Focus on Reducing Methane Emissions Leak Detection, Quantification & Repair Pipeline Integrity Enhancements Carbon Credits Aerial LiDAR Remote Monitoring Renewable Energy Pneumatic Conversions Smarter Asset Management Future Technologies B
Slide 32: Deployed Methane Detection Technology
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 as pressurized leaks up to 10 small as one PPM, currently • Fit for pu
Slide 33: Investing in Emissions Resources: Fixed Detectors
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 plus Usage • OGMP 2.0 & Proactive • OGMP 2.0 & Proactive • Dashboard
Slide 34: 2023 Field Trials - New Technology: Laser OGI
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 • Opportunity: o Efficient inspections with minimal instructi
Slide 35: Next LVL Energy: Setting a New Standard for Retirement
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 Asset Retirement As a wholly-owned subsidiary of Diversified, Next
Slide 36: Powerful Path Forward for 2025 and Beyond
Powerful Path Forward for 2025 and Beyond The Only Publicly Traded Champion of the PDP Subsector
Slide 37: Changing the Mindset of Modern Production Management
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 operations and mitigate or reduce emissions individual well performanc
Slide 38: "And" - We Can Deliver Results to Multiple Stakeholders
“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 scale produces significant and sustainable cash margins due
Slide 39: Get Stuff Done "GSD" - Significant Opportunity Ahead
GET STUFF DONE “GSD” – SIGNIFICANT OPPORTUNITY AHEAD Growth Profitability Shareholder Focus ➢ Carlyle $2B Strategic Partnership: ➢ Synergistic Platform: Leveraging Scale ➢ Established Ability to Generate Expanding PDP Operations and Operational Leverage Returns: Over Seven of Cash Generation Reflec
Slide 40: A Powerful Step Forward - 2025 Combined Company Outlook
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 (including full-year impact of Maverick acquisition) % Natural Gas 75% Adj.
Slide 41: Appendix
Appendix
Slide 42: Revenue Reconciliation (Non-IFRS) (Unaudited)
REVENUE RECONCILIATION (NON-IFRS) (UNAUDITED) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 Unit s 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY2024 1Q25 2Q25 Production: Natural gas (MMcf) 63,815 68,053 63,114 61,396 256,378 55,725 58,684 64,288 65,601 244,298 63,468 76,637 Oil (MBb
Slide 43: Expense Reconciliation (Non-IFRS) (Unaudited)
EXPENSE RECONCILIATION (NON-IFRS) (UNAUDITED) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 Unit s 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 Production: Natural gas (MMcf) 63,815 68,053 63,114 61,396 256,378 55,725 58,684 64,288 65,601 244,298 63,468 76,637 Oil (MBbls
Slide 44: Supplemental Financials
Supplemental Financials For the Six Months Ended June 30, 2025
Slide 45: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Audited YTD June 30, 2025 June 30, 2024 Revenue $ 778,065 $ 368,674 Operating expenses (345,605) (196,112) Depreciation, depletion and amortization (164,205) (119,220) Gross profit $ 268,255 $ 53,342 General and administrative expenses (90,254) (58,326)
Slide 46: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Audited Audited YTD YTD June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 EQUITY AND LIABILITIES ASSETS Shareholders' equity: Non-current assets: Share capital $ 20,695 $ 12,793 Natural gas and oil properties, net $ 4,205,736 $ 2,718,258 Share premium 1,378,049 1,208
Slide 47: Consolidated Statement of Cash Flows
CONSOLIDATED STATEMENT OF CASH FLOWS Audited Audited YTD YTD June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Cash flows from operating activities: Cash flows from investing activities: Net income (loss) $ (33,926) $ 15,745 Consideration for business acqui sit ions, net of cash acquired (192,
Slide 48: Alternative Performance Metrics
ALTERNATIVE PERFORMANCE METRICS As used herein, EBITDA represents earnings before interest, taxes, depletion, depreciation and amortization. adjusted EBITDA includes adjusting for items that are not comparable period-over-period, namely, accretion of asset retirement obligation, other (income) expen
Slide 49: Alternative Performance Metrics
ALTERNATIVE PERFORMANCE METRICS As used herein, net debt represents total debt as recognized on the balance sheet less cash and restricted cash. Total debt i ncludes our borrowings under the Credit Facility and borrowings under or issuances of, as applicable, our subsidiaries’ securitization facilit
Slide 50: Alternative Performance Metrics
ALTERNATIVE PERFORMANCE METRICS As used herein, free cash flow represents net cash provided by operating activities, less expenditures on natural gas and oil properties and equipment, and cash paid for interest. We Free Cash Flow believe that free cash flow is a useful indicator of our ability to ge
Slide 51: Corporate
Corporate 1600 Corporate Drive Birmingham, Alabama 35238-1087 (USA) div.energy div.energy Douglas Kris Kevin O’Brien Senior Vice President Director Investor Relations & Investor Relations Corporate Communications dkris@dgoc.com dkris@dgoc.com kpobrien@dgoc.com kpobrien@dgoc.com +1 973 856 2757 +1 41
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