Diversified Achieves Strong Final Year-End 2024 Results, Delivers on Capital Allocation Promises, and Introduces 2025 Combined Company Outlook

Core Insights - Diversified Energy Company PLC has successfully executed approximately $2 billion in acquisitions, positioning itself as a stronger and larger entity in a favorable pricing environment [1] - The company has maintained consistent operating costs for three consecutive years despite broader industry and inflationary pressures [1] - The integration of Maverick is expected to yield significant financial and operational benefits, enhancing free cash flow generation [1][10] Company Performance - Diversified has completed over$4 billion in acquisitions since its public listing in 2017, focusing on building a large-scale integration and operating company [2] - The company reported an average net daily production of 791 MMcfepd (132 MBoepd) and a year-end reserve of 4.5 Tcfe (747 MMBoe) with a PV10 of $3.3 billion [6] - Total revenue for 2024, inclusive of hedges, was$946 million, with an operating cash flow of $346 million and an adjusted EBITDA of$472 million [6][31] Financial Metrics - The adjusted EBITDA margin for 2024 was 51%, with an adjusted operating cost per unit of $1.70/Mcfe ($10.22/Boe) [6][33] - The company generated $49 million from land sales and coal mine methane revenues, while retiring over$200 million in debt principal [12] - Adjusted free cash flow for 2024 was $211 million, reflecting the company's focus on cash flow generation [12][34] Strategic Outlook - For 2025, Diversified anticipates total production between 1,050 to 1,100 Mmcfe/d, with approximately 25$50 million in annual synergies from the Maverick acquisition by year-end 2025 [12][10] - Diversified is positioned to enhance free cash flow growth in 2025 through strategic natural gas hedges and planned divestitures [12]