Diversified Energy Company · NYSE:DEC
Diversified Energy — FY2024 Earnings Presentation
21 slides from Diversified Energy's earnings presentation, Mar 17, 2025
Slide 1: Energy Optimized
Energy Optimized DEC: The Only Publicly Traded Champion of the PDP Subsector March 17, 2025
Slide 2: March
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: 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 4: FY 2024 Results Overview
FY 2024 Results Overview Delivering on Operational and Financial Strategy
Slide 5: 2024 Action Plan – Executing on Our Strategy
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 Dividend Accretive Acquisitions ~$85 million ~$2 billion in Dividend Distri
Slide 6: Built to Deliver Strong Cash Margins in Any Price Environment
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 Transco Zone 5 sales points Average Henry Hub Price Cash Margins (Hedged)
Slide 7: Extracting Value from Expansive Undeveloped Leasehold
EXTRACTING VALUE FROM EXPANSIVE UNDEVELOPED LEASEHOLD Undeveloped Leasehold Among Natural Gas-Weighted Operators Diversified’s acreage position in a “league of Its own” Undeveloped leasehold is approx. 3x larger than the nearest gas-weighted North American operator 5,572 Recorded $40+ million of lea
Slide 8: Relentless Focus on Increasing Value
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, Inclusive of Hedges of $946 million • Total Revenues per Unit of $
Slide 9: Focus on Scale & Vertical Integration Yields Cost Efficiencies
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 of Smarter Asset Management $1.86 $1.80 $1.73 Leveraging Technolo
Slide 10: Summit Acquisition Grows Coal Mine Methane Revenues
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 additional operating costs to maintain revenue stream + 300% $24 Inc
Slide 11: 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 12: Transformative Value Proposition
TRANSFORMATIVE VALUE PROPOSITION EBITDA Multiple vs Peers (x) Synergies of $50 million and liquids margin enhancement drive the potential of additional EBITDA and Multiple increase above AVG. Diversified Energy Trading at ~34% Discount 7.5x To 5Yr Avg and Avg Peer Multiple 7.2x 6.5x 6.7x 5.6x 5.6x 5
Slide 13: Acquisition Overview
Acquisition Overview Strengthening our Unique and Proven Strategy
Slide 14: 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 15: Western Anadarko Assets Complement Existing Footprint
WESTERN ANADARKO ASSETS COMPLEMENT EXISTING FOOTPRINT Western Anadarko Overview Combined Western Anadarko Position Maverick Assets 750,000 contiguous net acres allows for G&A and operational synergies Exhibits highly favorable decline characteristics 40% WI long-term joint development agreemen
Slide 16: Acquisition Drives Significant Free Cash Flow Growth
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 value creation $420 ~200% Benefits of Low Declines Differentiated, in
Slide 17: Adding Attractive Undeveloped Optionality in Portfolio
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 high-return capital deployment option to supplement acquisitions Partner
Slide 18: Quickly Establishing Post-Acquisition Efficiencies
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 operations, driving ~$35 million in G&A synergies $50 $884 $834 Driving
Slide 19: Conclusion and Outlook
Conclusion and Outlook . DIVERSIFIED energy
Slide 20: 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 MMcfe/d (including full-year impact of Maverick acquisition) % Natural Gas 75% Adj
Slide 21: Corporate
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 dkris@dgoc.com cwsmith@dgoc.com +1 973 856 2757 +1 205 315 0553
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