Financial and Strategic Accretive Acquisition Provides Opportunity for 95% Increase in Revenue, Enhanced Margins, Expense Synergies, and 55% Increase in Free Cash Flow

Diversified Energy (LSE:DEC)(NYSE:DEC) has announced a definitive agreement to acquire Maverick Natural Resources, a portfolio company of EIG, for approximately $1,275 million. This acquisition is expected to result in a substantial increase in revenue, improved margins, expense synergies, and a significant boost in free cash flow. By combining two complementary asset packages, the company aims to leverage their strengths to drive growth and profitability.

Unique & Differentiated Business Model Offers Reliable Production, Multi-Basin Commodity Diversification, and Strong Hedging Program that Enables Consistent Free Cash Flows

The unique and differentiated business model of Diversified Energy provides reliable production, diversification across multiple basins, and a strong hedging program that ensures consistent free cash flows. This strategic advantage allows the company to weather market fluctuations and maintain a stable financial position.

Significant Operating Scale Provides Optionality for Organic Growth Through Established Low-Risk, High-Return Development Partnership

With significant operating scale, Diversified Energy has the flexibility to pursue organic growth opportunities through established low-risk, high-return development partnerships. This positions the company for sustainable growth and long-term success in the energy sector.

The partnership with Maverick Natural Resources not only expands Diversified Energy’s proven roll-up model to the Permian Basin but also forges a strategic alliance with energy-focused investor EIG. This collaboration opens up new possibilities for the company’s growth and diversification.

The modern field management philosophy of Diversified Energy, led by an experienced diversified team, is well-positioned to leverage technology, capture synergies, and unlock portfolio value. This strategic approach to asset management sets the company apart in the industry and paves the way for future success.

BIRMINGHAM, AL / ACCESS Newswire / January 27, 2025 – Diversified Energy’s acquisition of Maverick Natural Resources marks a significant milestone for the company, positioning them for continued growth and success in the energy market.

How Will This Acquisition Affect Me?

As a consumer, you may see changes in energy prices and availability as a result of this acquisition. It could impact the competition in the market, potentially leading to a more stable and diversified energy supply for consumers.

How Will This Acquisition Affect the World?

On a global scale, this acquisition could influence energy markets and supply chains, potentially shaping the future of energy production and consumption worldwide. It may also have implications for environmental policies and sustainability efforts in the energy sector.

Conclusion

The acquisition of Maverick Natural Resources by Diversified Energy represents a significant opportunity for growth and diversification in the energy industry. By leveraging their unique business model, operating scale, and strategic partnerships, Diversified Energy is poised for success in the evolving energy market landscape.