Slides
Page 1
DEC: The Only Publicly Traded Champion of the PDP Subsector Energy Third Quarter Financial & Operational Results Presentation November 4, 2025 Optimized
Page 2
The information contained in this document (the "Presentation") has been prepared by Diversified Energy Company PLC (“Diversified” or the "Company”). This Presentation is for general information purposes only and does not constitute an invitation or inducement to any person to engage in investment activity. While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. This Presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and business of the Company and its wholly owned subsidiaries (the “Group”). All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. These forward-looking statements, which contain the words "anticipate", "believe", "intend", "estimate", "expect", "may", "will", "seek", "continue", "aim", "target", "projected", "plan", "goal", "achieve" and words of similar meaning, reflect the Company's beliefs and expectations and are based on numerous assumptions regarding the Company's present and future business strategies and the environment the Company and the Group will operate in and are subject to risks and uncertainties that may cause actual results to differ materially. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company or the Group to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's or the Group's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's or the Group's ability to continue to obtain financing to meet its liquidity needs, the Company’s ability to successfully integrate acquisitions, changes in the political, social and regulatory framework in which the Company or the Group operate or in economic or technological trends or conditions. The list above is not exhaustive and there are other factors that may cause the Company's or the Group's actual results to differ materially from the forward-looking statements contained in this Presentation, Including the risk factors described in the “Risk Factors” section in the Company’s Annual Report and Form 20-F for the year ended December 31, 2024, filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of their date and neither the Company nor the Group nor any of its respective directors, officers, employees, agents, affiliates or advisers expressly disclaim any obligation to supplement, amend, update or revise any of the forward-looking statements made herein, except where it would be required to do so under applicable law. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this Presentation may not occur. As a result, you are cautioned not to place undue reliance on such forward- looking statements. Past performance of the Company cannot be relied on as a guide to future performance. No statement in this Presentation is intended as a profit forecast or a profit estimate and no statement in this Presentation should be interpreted to mean that the financial performance of the Company for the current or future financial years would necessarily match or exceed the historical published for the Company. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. The distribution of this Presentation in or to persons subject to other jurisdictions may be restricted by law and persons into whose possession this Presentation comes should inform themselves about, and observe, any such restrictions. Any failure to comply with such restrictions may constitute a violation of the laws of the relevant jurisdiction. Certain key operating metrics that are not defined under IFRS (alternative performance measures) are included in this Presentation. These non-IFRS measures are used by us to monitor the underlying business performance of the Company from period to period and to facilitate comparison with our peers. Since not all companies calculate these or other non-IFRS metrics in the same way, the manner in which we have chosen to calculate the non-IFRS metrics presented herein may not be compatible with similarly defined terms used by other companies. The non-IFRS metrics should not be considered in isolation of, or viewed as substitutes for, the financial information prepared in accordance with IFRS. Certain of the key operating metrics set forth [below][in this Presentation] are based on information derived from our regularly maintained records and accounting and operating systems. The financial information in this Presentation does not contain sufficient detail to allow a full understanding of the results of the Company. Please refer to the full results announcement for more detailed information. It is our intention that all of the information provided during this Presentation or in any follow-up discussion will either be publicly available information or, if not publicly available, information that we do not believe constitutes inside information or material non- public information about the Company. However, you are under an obligation to assess independently for yourself whether you are in possession of inside information, and when you cease to be in possession of inside information. 2November 2025
Page 3
3November 2025 a) Share repurchases include the value of shares repurchase through Diversified announced Share Repurchase Program and the value of shares purchased by Diversified’s Employee Benefit Trust (the “EBT”) through November 1, 2025. b) Value of completed acquisitions based on the on previously announced gross valuation, includes the Canvas Energy, Summit Natural Resources and Maverick Natural Resources acquisitions closed in 2025. c) Includes dividends paid and declared during the calendar year 2025. d) Total Company Proved Reserves as of 07/01/2025 Using Full NYMEX Price Deck Effective 6/30/2025 EXECUTING ON OUR STRATEGY- CREATING VALUE IN 2025 Fixed per-share Dividend Strategic Share Repurchases Accretive Acquisitions Systematic Debt Reduction $203 million of debt principal payments ~$85 million in Dividend Distributions(c) ~$61 million value of shares repurchased(a) ~$2.0 billion of recently completed acquisitions(b) 1H 2025 Total Proved Reserves(d) of 5.98 Bcfe; increase of 65% vs. YE 2024 Illustrating the Strength, Resilience and Value of Our Asset Base Total stakeholder returns since 2017 IPO include ~$2.2 billion in shareholder returns and debt principal payments
Page 4
4 November 2025 4 MOVE OF PRIMARY LISTING TO NEW YORK STOCK EXCHANGE Increases overall trading liquidity in the Company’s shares, given access to deeper US capital markets Establishing SEC filing of GAAP financials for Q4/FY25, & change in parent company to Delaware incorporation from UK-based PLC Expands Company profile and access to high-quality equity investors Increases exposure to US investors through a primary US listing Optimizes positioning of the Company for inclusion in US equity indices and Exchange Traded Funds Maintaining secondary listing on the LSE to facilitate trading liquidity for non-US shareholder base
Page 5
5 November 2025 5 “MOUNTAINSTATEPLUGGING FUND“ – DEC CONTINUES TO INNOVATE &LEAD ✓ DEC pays $3.5 million annual premium for 20 years ✓ $70M over 20 years covers all of DEC’s Current ARO in the state (>25% of DEC wells) vs. total discounted ARO of $883M ✓ Years 1 – 20: DEC obligated to plug 75 wells per year ✓ Years 21 – 100: Fund supports plugging of up to 250 wells per year ✓ all DEC wells plugged by end of term ✓ Payments & fund balance are held in a bankruptcy-remote entity managed by an independent party (OneNexus) exclusively reserved for plugging obligations of DEC wells in WV Providing WV Financial Assurance for DEC’s Future Asset Retirement Obligations (ARO) Plugging Fund Attributes Financially Secure AgreementFund Establishment Compounding Investment Insurance Guarantee Groundbreaking Partnership – Common Sense Solution • DEC enters into long-term Asset Retirement Agreement (“ARA”) providing financial assurance to WV • Potential to cover all ARO in WV (~21k producing wells in WV – >25% of DEC portfolio) • WV leads the U.S. with a new standard for plugging financial assurance at zero cost to the State of WV Strengthening Position as Leading PDP Operator & Next LVL Energy as Go-To Asset Retirement Service Provider Efficient Well Retirement STEWARDSHIP – PARTNERSHIP – LEADERSHIP
Page 6
6 November 2025 6 D In-Basin Acquisition Framework FOCUSED ACQUISITION STRATEGY: CANVAS ENERGY Valuation • Mid-teens or greater PV value on producing assets • Targeting 2.0x-4.0x EBITDA / Purchase Price • Accretive to per-share FCF and EBITDA Operations & Synergies • Meaningful operating footprint overlap • Tangible administrative and operational synergies • Potential upside from acreage or PUD inventory not underwritten in valuation Financing • Ability to utilize ABS structure & Carlyle partnership • Strengthens balance sheet Canvas Acquisition Expected to Close in Q4 2025 Resilient Platform of Free Cash Flow Generation Acquire Attractively Valued Energy Assets Finance With The Lowest Possible Cost Of Capital Relentless Focus on Operational Excellence Diversified Formula
Page 7
7 November 2025 7 Strategic Purchase in 1H2025 Acquired for $500,000 and included an 8,000 Mcf/d Capacity 4-unit compressor station SMARTER ASSET MANAGEMENT: COMPRESSOR STATION ACQUISITION Increased Efficiency and Molecule Value Capacity for CMM credit volumes Adding third party volumes Lowered volume loss 14%, increased cash flow and improved emissions SMARTER ASSET MANAGEMENT ✓ Improved product pricing by removing tariff ✓ Increased runtime, reduced LOE, ability to capture additional high value alternative energy credits ✓ Lowered methane emissions ✓ Less than 2 month payback Eliminates Third-Party Fees Eliminated $1.00/mcf gathering & transportation fee Fallowfield Compressor Station Washington County, PA (Appalachian region) Portfolio Optimization
Page 8
8November 2025 DELIVERING EXCEPTIONAL PERFORMANCE AND GROWTH Third Quarter Financial & Operating Highlights Production Exit Rate of 1,144 MMcfe/d • 3Q 2025 avg. production of 1,127 MMcfe/d • Maintained consolidated production decline of ~10% per year Total Revenue, Inclusive of Hedges of $500(a) Million • Total Revenues per Unit of $4.82/Mcfe(a) • Expanding base of portfolio optimization, midstream, CMM, and Next LVL Adjusted EBITDA of $286 Million(b) • 66% Adj. EBITDA margin consistent with strong track record of cash generation(a) Generated $144 Million of Adjusted Free Cash Flow(c) • Operating Cash Flow of $166 Million • Significant portfolio optimization delivered $74 Million in cash proceeds(b) • YTD FCF(c) of $296 Million supported shareholder returns and debt repayment Reduced leverage by 20% since year-end 2024 • Strengthened Balance Sheet with $440 Million of Liquidity • Leverage of 2.4x within target range of 2.0x to 2.5x a) Excludes certain amounts relating to Diversified's wholly owned asset retirement subsidiary, Next LVL Energy, and includes proceeds from divestitures. Please refer to the Company’s RNS announcement on November 4, 2025 for more information. b) Adjusted EBITDA represents earnings before interest, taxes, depletion, and amortization, and includes proceeds from divestitures and adjustments for items that are not comparable period-over-period c) Adjusted Free Cash Flow includes proceeds from divestitures. 829 1127 Production Mmcfe/d $244 $500 Revenue(a) Millions $115 $286 Adj. EBITDA Millions $56 $144 Adj. Free Cash Flow Millions 3Q 2025 3Q 2024 1-year Growth 36% 105% 149% 157% Significant Y ear-over-Y ear Growth
Page 9
9 November 2025 9 CONTINUOUS PROCESS OF PORTFOLIO OPTIMIZATION DEC total acreage as per Form 20-F as of December 31, 2024 a) Calculated using the average price per acre of divestitures recorded in 2025YTD, including activity subsequent to June 30, 2025, and total net leasehold within Diversified’s Oklahoma operations 8.6 Million Net Acres within Operating Footprint 99.9% of all acreage currently held-by-production with minimal portfolio exposure to state or federal lands Undeveloped Acreage Represents ~65% of Total Provides significant upside potential through monetization or organic development via strategic partnerships, including Oklahoma non-op joint venture Significant Untapped Value of Undeveloped Acreage Land position of ~2.3 million acres in TX, NM, and OK, with recent land sales of ~$1,500/acre in Central Region indicating significant potential value (a) Enhancing Economics and Increasing Liquidity With acquisition economics focused solely on PDP assets, monetization of acreage represents pure upside opportunity to significantly improve investment returns $95 $59 $144 $95 $154 $298 2023 2024 2025 Acreage Sales (USD Millions) Cumulative Current Total 2025 Divestitures $144M Oklahoma ~60% Permian ~30% East Texas / Louisiana ~10% Annualized and Ratable Free Cash Flow Generation from Optimization Program
Page 10
10 November 2025 10 2025 FCF Conversion $244 $500 $56 $144 $64 $138 $88 $280 $144 $286 $328 $704 YTD 3Q25 2Q25 1Q25 ACQUISITIONS DRIVE FREE CASH FLOW GROWTH & CONVERSION a) Capital intensity calculated as Capital Expenditures / Adj. EBITDA using reported figures for Natural Gas E&P peers AR, CNX, CRK, EQT, EXE, GPOR, and RRC for the nine months ended September 30, 2024 b) Adjusted Free Cash Flow includes proceeds from divestitures. Please refer to the Company’s RNS announcement on November 4, 2025 for more information. c) Includes the impact of derivatives settled in cash and proceeds from divestitures; For purposes of comparability, excludes ce rtain amounts related to Diversified’s wholly owned plugging subsidiary, Next LVL Energy. d) Excludes certain amounts relating to Diversified's wholly owned asset retirement subsidiary, Next LVL Energy and includes proceeds from divestitures. Please refer to the Compan y’s RNS announcement on August, 2025 for more information e) Full-year Adjusted Free Cash Flow Does not include $32M of one -time transaction costs associated with acquisitions 47% EBITDA to FCF Conversion YTD 2025(e) Adjusted Free Cash Flow(e) Adjusted EBITDA 48% 66% 3Q253Q24 Adj. EBITDA Margin(d) ~157% Growth in FCF(b) Revenue(c) ($ Millions) Adjusted Free Cash Flow(b) Operational Capital Intensity 5x Lower Than Closest Peer(a) Cash Generation Increases Capital Available for Return to Shareholders & Future Investments Benefits of Low Declines Creates Strategic Flexibility Due to Reduced Need to Replace Declining Reserves
Page 11
11November 2025 10% 7% 8% 7% 8% 9% 9% 4% 10% 13% 9% P E E R A P E E R B P E E R C P E E R D P E E R E P E E R F P E E R G P E E R H P E E R I P E E R J D E C 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.4% 0.7% 0.8% 1.4% 1.4% 2.0% 2.0% 2.0% 2.0% 2.1% 2.1% 2.2% 2.2% 2.7% 3.3% 4.0% 4.3% 5.1% 5.1% 5.7% 6.3% a) Market Cap as of 10/30/25 Source: Company Data; FactSet & Mizuho Securities as of 10/17/2025; DEC Repurchases include corporate and EBT (Employee Benefit Trust) repurchases. Repurchases Peer Group: APA, AR, BKV, CHRD, CIVI, CNX, COP, CRC, CRGY, CRK, CTRA, CVX, DEC, EOG, EQT, EXE, FANG, GPOR, MGY, MTDR, MUR, OVV, OXY, PR, RRC, SM, TALO, XOM MLP and Mineral Peer Group: BSM, EPD, ET, HESM, KRP, MPLX, PAA, SUN, VNOM, WES OPPORTUNISTICALLY CREATING ADDITIONAL SHAREHOLDER RETURNS % of Market Cap Repurchased Dividend Yield vs MLP & Mineral Sector ~15% of market cap returned to shareholders through dividends and share repurchases YTD in 2025 ▪ MLP ▪ Minerals
Page 12
12November 2025 a) Guidance range for 2025 includes partial-year contribution of Maverick Natural Resources for the nine-months April 1, 2025 through December 31, 2025 INCREASED 2025 COMPANY FINANCIAL OUTLOOK 2025 Prior Guidance Range(a) 2025 Updated Guidance Range(a) Low High Low High Total Production (Mmcfe/d) 1,050 1,100 1,050 1,100 % Liquids 25% 25% % Natural Gas 75% 75% Adj. EBITDA (millions) $825 $875 $900 $925 Capital Expenditures (millions) $165 $185 $175 $185 Free Cash Flow (millions) ~$420 ~$440 Leverage Target 2.0x 2.5x 2.0x 2.5x Anticipated Annualized Synergies (millions) ~ $60 ~ $60 Prioritizing Free Cash Flow with the Flexibility to Allocate Across the Highest & Best Uses of Capital to Create Long-Term Shareholder Value updated updated updated
Page 13
13 November 2025 13 UNIQUE SMALL CAP INVESTMENT OPPORTUNITY Russell 3000 Constituents Platform Scale ~$1 Billion Adjusted EBITDA(a) Dividend History 20+ qtrs. consecutive dividend payment Growth >2x increase in Adj. EBITDA since 2020 Leading Returns Over 20% TTM TSR(b) 3,000 226 55 companies companies companies 24 companies 1 company $1B 21% 20+ 2.3x DEC metric Source: Factset a) Annualized guidance pro forma for Maverick acquisition b) 12- months ended October 2025
Page 14
div.energy Corporate 1600 Corporate Drive Birmingham, Alabama 35238-1087 (USA) div.energy kpobrien@dgoc.com Kevin O’Brien Director Investor Relations kpobrien@dgoc.com +1 412 403 7085 dkris@dgoc.com Douglas Kris Senior Vice President Investor Relations & Corporate Communications dkris@dgoc.com +1 973 856 2757