Continued Focus on Debt Repayments & Additional Undeveloped Land Sales Expanding Value Creation with Revenue from Coal Mine Methane Environmental Credits

Birmingham, AL / ACCESSWIRE / November 12, 2024

Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) is pleased to announce the following operations and trading update for the quarter ended September 30, 2024.

Delivering Reliable Results

Recorded average 3Q24 production of 829 MMcfepd (138 Mboepd)

September 2024 exit rate of 851 MMcfepd (142 Mboepd)

Operating Cash Flow of $102 million, and Net loss of $1 million inclusive of non-cash unsettled derivative adjustments, and non-cash depreciation, depletion and amortization

Achieved 3Q24 Adjusted EBITDA of $115 million and Free Cash Flow of $47 million

Realized 49% 3Q24 Adjusted EBITDA Margin and TTM Free Cash Flow Yield of 32%

3Q24 Total Revenue, Inclusive of Settled Hedges per Unit of $3.23/Mcfe ($19.38/Boe)

3Q24 Adjusted Operating Cost per Unit of $1.71/Mcfe ($10.23/Boe)

Reaffirmed credit facility borrowing base at $385 million with $102 million of undrawn capacity and unrestricted cash

Revenue Growth Initiatives

Announced fixed-price contract for gas delivery to a major Gulf Coast LNG export facility

Generated ~ $23 million year-to-date in cash flow through divestiture of undeveloped leasehold

Expansion into adjacent market of Coal Mine Methane (“CMM”) capture and environmental credit sales generating $8 to $10 million of EBITDA in 2024

Executing Strategic Objectives

Retired $154 million debt principal through amortizing debt payments, year-to-date

Declared 3Q24 dividend of $0.29 cents per share

Repurchased ~1.4 million shares in 2024, representing ~$20 million of share buybacks

Completed previously announced acquisitions of Crescent Pass Energy and East Texas assets

Combined with Oaktree Working Interest Acquisition, offsets ~2 years of declines

Next LVL Milestones

The Company has retired a total of 165 operated wells, year-to-date and is on track to meet or exceed Diversified’s stated goal of retiring 200 wells within its Appalachian footprint in 2024

Next LVL Energy completed 233 well retirements through September 2024, including 68 wells associated with orphan wells and third-party operators

Rusty Hutson, Jr., CEO of Diversified, commented: “Our results this quarter demonstrate the underlying strength of our business to deliver consistent cash flow and our commitment to operational excellence.”

How This Will Affect Me

As a consumer, the focus on debt repayments and revenue growth initiatives by Diversified Energy Company PLC may lead to more stable energy prices and increased environmental considerations in the industry. This could potentially result in better services and products for customers like myself.

How This Will Affect the World

The strategic objectives and milestones achieved by Diversified Energy Company PLC have the potential to impact the energy sector globally. The expansion into environmental credit sales and retirement of operated wells demonstrate a commitment to sustainability and reducing environmental impact, setting a positive example for the industry as a whole.

Conclusion

In conclusion, Diversified Energy Company PLC’s continued focus on debt repayments, revenue growth initiatives, and strategic objectives are paving the way for a more sustainable and efficient energy industry. By addressing financial responsibilities and exploring new avenues for revenue generation, the company is not only improving its own operations but also contributing to a positive shift in the global energy landscape.