Diversified Energy Reports Strong Second Quarter Results Highlighting Consistent Cash Margins, Year-over-Year Growth, and Disciplined Execution of Maverick Acquisition Integration

Non-Op Development Partnership Generating Over 60% Returns with Minimal Capital Spend that Delivers an Improving Corporate Decline Rate

Portfolio Optimization Program Contributed $70 Million in Cash Flow Year-to-Date

Returned Over $105 million to Shareholders Year-to-Date Through Dividends and Share Repurchases

On Track to Achieve Full-Year 2025 Guidance

BIRMINGHAM, Ala., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Diversified Energy Company PLC (LSE: DEC, NYSE: DEC) today announced its interim results for the six months ended June 30, 2025, reporting performance in line with expectations and highlighting key strategic and financial achievements.

Delivering Reliable Results and Strategic Growth as the U.S. PDP Champion

Second Quarter 2025 Results

(Second Quarter Results Reflect Full Quarter Impact of the Acquisition of Maverick Natural Resources)

Production exit rate(a): 1,135 MMcfepd (189 Mboepd)

Average production: 1,149 MMcfepd (192 Mboepd)

Production volume mix (natural gas, NGLs, oil): 73% / 13% / 14%

Total Revenue (including settled hedges)(d): $510 million

Operating Cash Flow: $133 million

Adjusted EBITDA(b): $280 million

Free Cash Flow: Adjusted Free Cash Flow(c) of $88 million after $25 million of nonrecurring transaction costs

Annualized Adjusted FCF Yield(c) of 31%

Revenue per unit(d): $4.88/Mcfe ($29.28/Boe)

Adjusted cost per unit(e):$2.21/Mcfe ($13.26/Boe)

First Half 2025 Results

Average production: 1,007 MMcfepd (168 Mboepd)

Production volume mix (natural gas, NGLs, oil): 77% / 13% / 10%

Total Revenue (including settled hedges)(d): $804 million

Operating Cash Flow: $264 million

Adjusted EBITDA(b): $418 million

Free Cash Flow: Adjusted Free Cash Flow(c) of $152 million after $28 million of nonrecurring transaction costs

CAPEX: $89 million

Non-Op drilling expenditures weighted more in Q2; full-year Capex trending toward low end of guidance

Revenue per unit(d): $4.41/Mcfe ($26.46/Boe)

Adjusted cost per unit(e): $2.11/Mcfe ($12.66/Boe)

Improving Financial and Operational Metrics

Financial Strength and Shareholder Returns

Liquidity: $416 million of undrawn credit facility capacity and unrestricted cash

Leverage ratio: 2.6x Net Debt to EBITDA; ~13% improvement from YE2024

Consolidated debt consists of ~70% in non-recourse ABS securities

ABS principal reduction: Retired $130 million in principal during 1H25

2Q25 dividend: $0.29 per share declared

Shareholder returns: Over $105 million returned YTD via dividends and repurchases(f)

Share repurchases: ~3.3 million shares repurchased YTD (~4% of outstanding shares), totaling ~$43 million(f)

Strategic Execution and Transformational Growth

$2 Billion Carlyle Partnership

Strategic partnership to invest up to $2 billion in existing U.S. proved developed producing (PDP) oil and gas assets

Capitalizes on industry consolidation trends and divestitures of mature producing assets

Non-dilutive structure preserves capital flexibility and supports long-term growth

Enhances Diversified’s stature as a leading consolidator of upstream PDP assets

Maverick Integration Update

Increasing annualized synergy target to $60M from previously stated $50M, following strong execution during our integration process

Efficiency gains through staffing optimization, contract savings, and midstream cost reductions

Field-level integration completed in Q2

Technology and administrative integration are on track for 3Q25 completion

Unlocking Value Through Portfolio Optimization

Portfolio optimization program realized ~$70 million from non-core asset and leasehold divestitures

Joint Development Partnership continues to produce >60% IRRs with 124 wells drilled under the JDA in the last 3 years

The program highlights optionality in DEC’s portfolio to monetize Central Region acreage via non-op drilling or leasehold divestitures

Oklahoma midstream transaction provides a no-fee whole-owned pipeline, compression efficiencies, emissions improvement and numerous production optimization projects

East Texas portfolio optimization yields incremental cash flow via gathering and processing dedication fees, with potential to increase Black Bear facility throughput to current full capacity of 120 MMcf per day

Revenue of ~$6.6 million through June 2025 from Coal Mine Methane (CMM) associated environmental attribute credits

Remain on track to grow environmental credit cash flow by 300% from YE 2024 levels

Next LVL Energy and Regulatory Updates

In the first half of 2025, the Company permanently retired 213 wells, including 170 Diversified wells

Since establishment of Next Level in 2022, Diversified has retired 1,112 wells

Rusty Hutson, Jr., CEO of Diversified, commented:

“Diversified continues to deliver consistent returns on our assets, along with the expansion of our asset portfolio, reinforcing our position as the U.S. PDP Champion. Our strong first-half performance reflects the resilience of our business model, the quality of our assets, and the dedication of our talented teams. With the successful integration of Maverick progressing on schedule, we are already realizing meaningful synergies and operational efficiencies that enhance our ability to optimize cash flow in our expanded portfolio and drive long-term value from our investments.

The strategic partnership with The Carlyle Group marks a transformational milestone for Diversified. This $2 billion commitment underscores confidence in our platform and provides significant capital flexibility to capitalize on the ongoing consolidation of mature producing assets. It also strengthens our ability to scale responsibly, in a non-dilutive manner, while preserving our disciplined approach to capital allocation.

We remain focused on unlocking value across our portfolio through asset optimization, which resulted in approximately $70 million of additional cash flow, high return projects with our targeted capital investments, and the continuation of portfolio optimization through Smarter Asset Management (SAM) programs. Our NextLVL team’s industry-leading pace of asset retirements and regulatory advancements in West Virginia highlights our commitment to collaborating across our organization and with key stakeholders to solidify our commitment to sustainable operations.

As we look ahead, the mega trends of electrification, AI power demand, and US LNG Export growth only strengthen the fundamental outlook for our business. The acceleration of natural gas generation for data center demand in Appalachia creates a line of sight to meaningful in-basin demand, pointing to tighter basis spreads near our footprint in the coming years. While our expansive central region operations are well-positioned to support US Energy dominance in the Gulf Coast, including as a strategic supplier to LNG export terminals.

Given Diversified's continued operational excellence, fundamental market tailwinds, and strategic actions to optimize our portfolio of assets, we remain confident in our ability to continue delivering consistent and resilient free cash flow, maintaining a strong balance sheet, and returning meaningful capital to shareholders. Diversified is well-positioned to thrive as a proven portfolio manager of energy assets in today’s evolving energy landscape, and we are proud to be the Right Company at the Right Time, delivering essential energy while creating long-term value for all stakeholders.”

Operations and Finance Update

Production

The Company recorded exit rate production in June 2025 of 1,135 MMcfepd (189 Mboepd)(a) and delivered 2Q25 average net daily production of 1,149 MMcfepd (192 Mboepd). The Company's production volume mix was approximately 73% natural gas, 13% natural gas liquids ("NGL's"), and 14% oil, with approximately 64% of production volumes from the Central region and 36% from Appalachia for the second quarter. Net daily production for the quarter continued to benefit from Diversified’s peer-leading, shallow decline profile.

Margin and Total Cash Expenses per Unit

Diversified delivered 2Q25 per unit revenues of $4.88/Mcfe(d) ($29.28/Boe) and Adjusted EBITDA Margin(b) of 63% (65% unhedged). Notably, these per unit metrics reflect an increase in both revenues and expenses from the incorporation of greater liquids-related production of Maverick. The Company’s per unit expenses are anticipated to improve as the Company implements its playbook to achieve long-term, sustainable synergies and cost savings. For example, General and Administrative expenses compared to prior period levels, despite the higher per unit costs of Maverick, supporting our progress on cost savings and synergy capture.

Share Repurchase Program

At the 2025 Annual General Meeting, the Company's share repurchase authority was approved for a maximum of 8,099,015 shares representing 10% of the Company's issued share capital (the "2025 Authorization"). The Company announced details regarding the parameters of a Share Buyback Program (the "Program") on 20 March 2025, pursuant to which the maximum number of shares repurchased shall not exceed 4,756,842 Shares under the Program. Following the 2025 Authorization, the Company announces that the maximum number of shares repurchased under the Program shall be increased to, and shall not exceed, 8,099,015 shares. Year to date, the company has repurchased 3,273,466 shares, representing approximately 4% of the shares outstanding.

Combined Company 2025 Outlook

The Company is reiterating its previously announced Full Year 2025 guidance. Following the recently completed acquisition of Maverick, Diversified expects to realize significant operational synergies associated with a larger, consolidated position in Oklahoma and the ability to improve the overall cost structure of the Maverick assets while continuing to prioritize returns and Free Cash Flow generation.

The following outlook incorporates a nine-month contribution from the recently acquired Maverick assets.

2025 Guidance

• Includes the value of anticipated cash proceeds for 2025 asset optimization.

Conference Call Details

The Company will host a conference call today, Monday, August 11, 2025, at 1:00 PM GMT (8:00 AM EDT) to discuss the 1H25 Interim Results and will make an audio replay of the event available shortly thereafter.

Use of Non-IFRS Measures

Adjusted EBITDA & Pro Forma TTM Adjusted EBITDA

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, finance costs, accretion of asset retirement obligation, other (income) expense, (gain) loss on fair value adjustments of unsettled financial instruments, (gain) loss on natural gas and oil property and equipment, (gain) loss on sale of equity interest, unrealized (gain) loss on investment, costs associated with acquisitions, other adjusting costs, loss on early retirement of debt, non-cash equity compensation, (gain) loss on interest rate swaps, and items of a similar nature. Pro forma TTM adjusted EBITDA extends adjusted EBITDA by adjusting for acquisitions or other significant changes that impacted EBITDA over the last twelve months.

Adjusted EBITDA and pro form TTM adjusted EBITDA should not be considered in isolation or as a substitute for operating profit or loss, net income or loss, or cash flows provided by operating, investing and financing activities. However, we believe such measure is useful to an investor in evaluating our financial performance because it (1) is widely used by investors in the natural gas and oil industry as an indicator of underlying business performance; (2) helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement; (3) is used in the calculation of a key metric in one of our Credit Facility financial covenants; and (4) is used by us as a performance measure in determining executive compensation. When evaluating this measure, we believe investors also commonly find it useful to evaluate this metric as a percentage of our total revenue, inclusive of settled hedges, producing what we refer to as our adjusted EBITDA margin.

Net Debt, Net Debt-to-Adjusted EBITDA & Net Debt-to-Pro Forma TTM Adjusted EBITDA

As used herein, net debt-to-adjusted EBITDA, net debt-to-pro forma TTM adjusted EBITDA, or “leverage” or “leverage ratio,” is measured as net debt divided by adjusted EBITDA or pro forma TTM adjusted EBITDA. We believe that this metric is a key measure of our financial liquidity and flexibility and is used in the calculation of a key metric in one of our Credit Facility financial covenants.

As of

Free Cash Flow

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 believe that free cash flow is a useful indicator of our ability to generate cash that is available for activities beyond capital expenditures. The Directors believe that free cash flow provides investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and investments, and pay dividends.

• Annualized second quarter 2025 free cash flow of $88 million and Market Cap of $1.1 billion as of August 8, 2025.

Total Revenue, Inclusive of Settled Hedges and Adjusted EBITDA Margin

As used herein, total revenue, inclusive of settled hedges, accounts for the impact of derivatives settled in cash. We believe that total revenue, inclusive of settled hedges, is useful because it enables investors to discern our realized revenue after adjusting for the settlement of derivative contracts.

As used herein, adjusted EBITDA margin is measured as adjusted EBITDA, as a percentage of total revenue, inclusive of settled hedges. Adjusted EBITDA margin encompasses the direct operating costs and the portion of general and administrative costs required to produce each Mcfe. This metric includes operating expense, employee costs, administrative costs and professional services, and recurring allowance for credit losses, which cover both fixed and variable cost components. We believe that adjusted EBITDA margin is a useful measure of our profitability and efficiency, as well as our earnings quality, because it evaluates the Group on a more comparable basis period-over-period, especially given our frequent involvement in transactions that are not comparable between periods.