Diversified Energy Company · NYSE:DEC
Diversified Energy — Q1 2025 Earnings Presentation
11 slides from Diversified Energy's earnings presentation, May 12, 2025
Slide 1: Energy Optimized: First Quarter Results Presentation
Energy Optimized DEC: The Only Publicly Traded Champion of the PDP Subsector First Quarter Results Presentation May 12, 2025
Slide 2: Disclaimer
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: Executing on Our Strategy - Creating Value in Q1 2025
EXECUTING ON OUR STRATEGY- CREATING VALUE IN Q1 2025 Systematic Debt Reduction Strategic Share Repurchases $51 million ~$19 million of debt principal payments value of shares repurchased(a) Fixed per-share Dividend Accretive Acquisitions ~$40 million ~$2 billion in Dividend Distributions of recently
Slide 4: Relentless Focus on Increasing Value
RELENTLESS FOCUS Q1 2025 Exit Rate Production of 1,149 MMcfe/d • First Quarter 2025 average production of 864 MMcfe/d ON INCREASING VALUE • Maintained consolidated production decline of ~10% per year Financial & Operating Highlights Q1 2025 Total Revenue, Inclusive of Hedges of $295 million • Total
Slide 5: 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 6: Committed to Delivering a Foundation of Free Cash Flow
COMMITTED TO DELIVERING A FOUNDATION OF FREE CASH FLOW 51% 45% 42% 38% 34% Quarter Ended March 31, 2025 Free Cash Flow Conversion 13% 2% Diversified leads Natural Gas E&Ps in Free Cash Flow conversion with 3x the peer group average and BETTER than companies with significantly larger market capitaliz
Slide 7: Quickly Establishing Post-Acquisition Efficiencies
QUICKLY ESTABLISHING POST-ACQUISITION EFFICIENCIES Leveraging Scale for Meaningful G&A Efficiencies Progress of Synergy Capture & Opportunities Full field level integration anticipated by end of second quarter; technology & administrative by end of third quarter Achieved Driving Operating Cost Reduc
Slide 8: 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 To 5Yr Avg and Avg Peer Multiple 7.5x 7.2x 6.5x 6.7x 5.6x 5.6x 5
Slide 9: 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 10: 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 11: Corporate contact details
Corporate 1600 Corporate Drive Birmingham, Alabama 35238-1087 (USA) div.energy div.energy Douglas Kris Wren Smith Senior Vice President Senior Manager Investor Relations & Investor Relations Corporate Communications dkris@dgoc.com cwsmith@dgoc.com dkris@dgoc.com cwsmith@dgoc.com +1 973 856 2757 +1 2
Diversified Energy Company — Q1 2025 Earnings Presentation on 6ix