Diversified Energy Company · NYSE:DEC
Diversified Energy — Merger or Acquisition (January 2025)
19 slides from Diversified Energy's merger presentation, Jan 27, 2025
Slide 1: A Powerful Step Forward
A Powerful Step Forward Expanding Asset Base, Density & Commodity Mix with Acquisition of Liquids-Rich Maverick Natural Resources January 2025
Slide 2: January
The information contained in this document (the "Presentation") has been prepared by Diversified Energy companies, which may result in the combined company not operating as effectively and efficiently as expected, the risk Company PLC (“Diversified” or the "Company”). This Presentation is for genera
Slide 3: Strengthening Our Unique and Proven Strategy
STRENGTHENING OUR UNIQUE AND PROVEN STRATEGY Commodity Revenue Basin & Geographic Reinvestment Business Segment Diversification Diversification Diversification Diversification Exposure to Premium Operating High-quality Optionality to Grow By Coal Mine Methane Oil Prices and The LNG Assets Across Tar
Slide 4: A Compelling Opportunity: Maverick Natural Resources
A COMPELLING OPPORTUNITY: MAVERICK NATURAL RESOURCES Multi-Dimensional Value Western Anadarko Permian / Central Basin Platform Creation Commodity Diversification Peer Leading Corporate Declines Multi-Basin Portfolio with Asset Density Creates Premier WAB/Oklahoma Operator Key Statistics AR /
Slide 5: Transaction Overview
TRANSACTION OVERVIEW Transaction • Acquisition of Maverick Natural Resources, LLC for $1,275mm (inclusive of the assumption Structure of net debt, and other credit adjustments) • ~21.2MM Diversified common shares issued(a) to Maverick unitholders Consideration • ~$207mm cash consideration funded via
Slide 6: Highly Impactful Deal with Multiple Value Creation Levers
HIGHLY IMPACTFUL DEAL WITH MULTIPLE VALUE CREATION LEVERS Enhanced Scale of Company and Operations Unlocking Significant Shareholder Value Increased Operational Scale & Liquids Weighting Attractive acquisition valuation of 3.3x LTM EBITDA(a) Premier PDP operator with the expansion of roll-up m
Slide 7: Acquisition Drives Significant Free Cash Flow Growth
ACQUISITION DRIVES SIGNIFICANT FREE CASH FLOW GROWTH LTM Free Cash Flow Complementary Cash Flow Profiles Robust and sustainable cash flow profiles from Diversified and Maverick provide platform for continued value creation ~$345 +57% Uplift Benefits of Low Declines Differentiated, industry-low corpo
Slide 8: Logical, Disciplined, Strategic Transaction
LOGICAL, DISCIPLINED, STRATEGIC TRANSACTION Number of Operated Basins Current Production (MMcfe/d)(a) Overlap in Anadarko and Ark-La-Tex; Entry to Permian Increases production by 40%, liquid weighting by 70% 5 1,202 Immediate Transaction Benefits 4 851 3 351 Increases Operational Scale & Liquids Wei
Slide 9: Enhanced Margins from Increased Liquids Weighting
ENHANCED MARGINS FROM INCREASED LIQUIDS WEIGHTING Liquids Weighting (%) Commodity diversification drives 56% 26% increase in EBITDA per unit 36% 32% 28% 21% Peer Average 16% 15% 9% 9% 9% 6% 0% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 EBITDA Margin vs. Peers ($/Mcfe) $2.93 $2.02 $1.86
Slide 10: Asset Density Creates Premier WAB Operator
ASSET DENSITY CREATES PREMIER WAB OPERATOR ~1.2 Mn Combined Acreage Largest Expansive Undeveloped Joint Development Acreage Position Partnership Program ~54 Mboe/d Combined Production Complementary Acreage Leading Public Consolidator Largest Position Across Oklahoma of PDP Assets and Facilities & Te
Slide 11: 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 12: Entry to Permian Expands Platform for Proven Strategy
ENTRY TO PERMIAN EXPANDS PLATFORM FOR PROVEN STRATEGY Permian Basin Overview Maverick Permian Position Maverick Assets Portfolio concentrated in Northwest Shelf and Central Basin Platform Low decline floods and efficient operational cost structure yield consistent, high-margin cash flow Provid
Slide 13: 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 14: Diversified's Platform Is Built for Scale
DIVERSIFIED’S PLATFORM IS BUILT FOR SCALE 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 Edge Tech
Slide 15: A Proven Approach to Synergy Capture
A PROVEN APPROACH TO SYNERGY CAPTURE Asset Density Accelerates Capturing Synergies Typical Post-Acquisition Opportunity Areas Unlocks significant value and provides sustainable opportunities Expect fast, effective and efficient integration and unlock of expense savings given familiarity with ass
Slide 16: Transformative Value Proposition
TRANSFORMATIVE VALUE PROPOSITION EBITDA Multiple vs Peers (x) ~45% Discount Synergies and liquids margin enhancement To Avg Peer Multiple drive potential EBITDA and Multiple increase 8.6x ~30% Discount 7.9x 7.9x to Historical Avg 7.6x 6.7x 7.1x 6.6x 5.7x 5.4x 5.6x 4.0x 3.3x Peer 1 Peer 2 Peer 3 Peer
Slide 17: Maintaining Flexible Capital Allocation Strategy
MAINTAINING FLEXIBLE CAPITAL ALLOCATION STRATEGY Systematic Debt Reduction Fixed Per-Share Dividend Anticipated reduction in borrowings through Provide a meaningful & sustainable capital amortization of $200 million in 2025 return structure Decrease leverage to lower end of stated Annualized dividen
Slide 18: Creating a Premier Production Company for the 21st Century
CREATING A PREMIER PRODUCTION COMPANY FOR THE 21ST CENTURY Strategic Transaction to Immediately Accretive to Total Build Scale in Diversified, Leverage and Accelerated Future Low-Risk Business Model Deleveraging Substantial Upside Through Premier Operational Multiple Re-Rate, Enhanced Cash Efficienc
Slide 19: 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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