Diversified Energy Company (DEC) 2024 Southwest IDEAS Conference summary

Business strategy and operations

• Focuses on acquiring mature oil and gas assets, improving performance and emissions, and managing them through scale, technology, and vertical integration.

• Operates in the Appalachian Basin and central U.S. regions, with a dual listing on NYSE and LSE.

• Produces about 850 million cubic feet per day, mainly natural gas, and owns 17,000 miles of midstream assets.

• Business model de-risks traditional E&P by avoiding drilling, using high hedging (85% near-term), and leveraging ABS financing for low-cost debt.

• Maintains low production decline rates and high cash margins, enabling consistent shareholder returns and growth capital.

Financial performance and capital allocation

• Recognized $8–$10 million EBITDA from coal mine methane capture and environmental credits in 2023, with potential for 3–4x growth.

• Realized $23 million in land sales in Oklahoma year-to-date, with additional value from JVs and undeveloped acreage.

• Enhanced margins by over $9 million annually through infrastructure optimization, such as the Black Bear Processing Facility.

• Completed nearly $600 million in bolt-on acquisitions in 2023 without increasing G&A, leveraging operational synergies.

• Maintains a fixed dividend of $1.16 per share (7.5%–8.5% yield), with a capital allocation focus on debt reduction, dividends, share buybacks, and accretive acquisitions.

ESG and emissions management

• Reduced GHG emissions by over 50% since 2022, achieving 2030 targets early and maintaining 99% leak-free operations.

• Achieved Gold Standard from the Oil and Gas Methane Partnership for three consecutive years and holds an AA MSCI ESG rating.

• Retired over 400 wells in 2022 through the Next LVL asset retirement business, exceeding state requirements and generating third-party revenue.

• Coal mine methane capture and environmental credits are key to future carbon capture and credit strategies.

• Provides significant economic impact to local communities through royalties, jobs, and tax payments.