Diversified Energy Company · NYSE:DEC
Diversified Energy — Q2 2025 Earnings Presentation
16 slides from Diversified Energy's earnings presentation, Aug 11, 2025
Slide 1: Energy Optimized: Second Quarter Results Presentation
Energy Optimized DEC: The Only Publicly Traded Champion of the PDP Subsector Second Quarter Results Presentation August 11, 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 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 regulated NGL pipeline DeSoto Parish, LA (central region) Cotton Valley and Haynesville Basins Increased Processing Capacity Recently completed upgrad
Slide 12: Market Leader in Free Cash Flow and Returns to Shareholders
MARKET LEADER IN FREE CASH FLOW AND RETURNS TO SHAREHOLDERS FCF Yield vs Peers FCF Yield vs Sector Avg. 30.9% 30.9% 15.6% 11.5% Peer avg. Peer avg. 10.2% 7.8% 8.7% 8.0% 8.5% 8.4% 6.3% 3.9% 5.3% 2.9% 3.0% 3.2% 3.5% 3.5% -1.9% -0.6% -2.5% -2.8% Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H P
Slide 13: Unique Opportunity for Equity Upside
UNIQUE OPPORTUNITY FOR EQUITY UPSIDE EBITDA Multiple vs Peers Peer Equivalent Synergies of $55+ million and liquids margin enhancement drive the Trading at $31 potential of additional EBITDA and Multiple increase above AVG. ~20% Discount Share Price To 5Yr Avg and Avg Peer 6.9x Multiple 6.7x 6.5x 6.
Slide 14: A Powerful Step Forward - 2025 Company Outlook
A POWERFUL STEP FORWARD- 2025 COMPANY OUTLOOK 2025 Guidance Range(a) FY 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. EBIT
Slide 15: 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 16: 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 kpobrien@dgoc.com dkris@dgoc.com kpobrien@dgoc.com +1 973 856 2757 +1 41
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