Diversified Energy (DEC) investor relations material

Executive summary

• Completed $1.175B Camino Natural Resources acquisition in partnership with Carlyle and closed Sheridan acquisition, expanding Oklahoma and East Texas operations and adding significant production and undeveloped acreage.

• Achieved strong Q1 2026 results: 39% YoY production growth, 69% YoY revenue growth, and 108% YoY adjusted EBITDA growth, driven by acquisitions and portfolio optimization.

• Returned $94M to shareholders in Q1 2026, including $72M in share repurchases and $22M in dividends.

• Generated over $100M in proceeds from portfolio optimization activities and expanded non-operated partnerships to enhance future production and reserves.

• Maintained leverage at 2.2x and ended Q1 with $529M in liquidity, supporting continued disciplined capital allocation.

Financial highlights

• Q1 2026 production averaged 1,198 MMcfepd (200 Mboepd), up 39% YoY, with a March exit rate of 1,228 MMcfepd.

• Total commodity revenue was $556M, up 69% YoY; adjusted EBITDA reached $287M (68% margin), up 108% YoY.

• Adjusted free cash flow was $160M, up 157% YoY; operating cash flow totaled $169M.

• Net loss for Q1 2026 was $161M, including a $398M non-cash loss on unsettled derivatives, improved from a $323M loss in Q1 2025.

• Capital expenditures were $58M in Q1 2026; total borrowings stood at $2.9B as of March 31, 2026.

Outlook and guidance

• Reiterated 2026 guidance: production of 1,170–1,210 MMcfepd (28% liquids, 72% natural gas), adjusted EBITDA of $925–$975M, and adjusted free cash flow of ~$430M.

• Capital expenditures expected at $135–$235M; leverage target remains 2.0x–2.5x net debt/EBITDA.

• Guidance excludes recently closed Sheridan and announced Camino acquisitions; updates expected in Q3.

• Liquidity at quarter-end was $529M, including $55M cash and $475M available under the Credit Facility.

• The company expects to fund future capital needs from operating cash flows and existing liquidity.