Here are 1-3 brief analogies to describe Diversified Energy (DEC):

1. Constellation Software for natural gas wells. (DEC acquires and optimizes numerous mature, existing natural gas wells in a fragmented market for stable cash flow, similar to how Constellation Software acquires and manages many small, vertical market software businesses.)
2. Kinder Morgan, but for acquiring and operating natural gas production assets instead of pipelines. (DEC focuses on acquiring and efficiently managing existing, long-life natural gas wells to generate stable, predictable cash flows, much like Kinder Morgan operates established energy infrastructure.)

• Natural Gas: Extraction and sale of natural gas from their owned and operated wells.
• Natural Gas Liquids (NGLs): Production and marketing of valuable liquid hydrocarbons co-produced with natural gas.
• Crude Oil: Minor production and sale of crude oil associated with their natural gas operations.

Diversified Energy Company PLC (symbol: DEC) sells primarily to other companies.

Based on their latest public filings (e.g., 20-F Annual Report), no individual customer accounted for 10% or more of their total revenue in recent fiscal years. Therefore, Diversified Energy does not have individually named "major customers" in the traditional sense of a dominant purchaser.

Instead, they sell their natural gas and NGLs to a diverse group of companies falling into the following categories:

• Energy Marketing Companies: These companies aggregate supply from various producers and sell it to end-users across different sectors.
• Industrial Customers: Large industrial facilities that utilize natural gas as a fuel or feedstock in their operations.
• Local Distribution Companies (LDCs) / Utilities: Companies that deliver natural gas to residential, commercial, and smaller industrial customers within a specific service area.

As no single specific company represents a major customer, individual company names and their public symbols cannot be provided.

null

Rusty Hutson, Jr., Co-Founder & Chief Executive Officer

Co-founded Diversified Energy in 2001, initially purchasing gas wells in West Virginia. He previously spent 13 years in the banking industry, culminating as CFO of Compass Financial Services.

Brad Gray, President & Chief Financial Officer

Appointed President and CFO in September 2023. Prior to this, he served as COO of Diversified Energy and held CFO and COO-like roles at various companies. He previously served as Senior Vice President and CFO for Royal Cup, Inc., and as Executive Vice President and CFO for The McPherson Companies, Inc.

David E. Johnson, Independent Non-Executive Chairman

Has extensive experience in the investment sector, holding roles as an investment analyst, manager, and in equity sales and investment management at firms such as Investec Securities and Panmure Gordon & Co. He later had responsibility for private equity investments at Chelverton Asset Management and is a non-executive director of Chelverton Equity Partners, an AIM-listed holding company.

Rick Gideon, Chief Operating Officer

Joined Diversified Energy in March 2025 following the acquisition of Maverick Natural Resources, where he served as CEO, COO, and Executive Vice President. Before Maverick, he was CEO of Roan Resources, Inc.

Ron Ridgway, Executive Vice President of Energy Marketing

Joined Diversified in March 2021 from Berkshire Hathaway Energy, where he was Director of Interstate and NGL Marketing. He brings over 30 years of industry experience across marketing, transportation, NGL activities, operations, rates, and gas accounting.

The most significant risk stems from Diversified Energy's extensive Asset Retirement Obligations (AROs) and potentially underestimated well decline rates. Independent analyses suggest the company's wells are declining at a higher rate (between 11% and 19% annually) compared to its internal projection of 8.5%. This discrepancy could lead to significantly higher future costs for plugging and abandoning wells and a shorter productive life for its assets than currently anticipated, impacting long-term cash flows and liabilities.

Secondly, Diversified Energy faces risks associated with a high debt burden, profitability concerns, and the sustainability of its dividend. Several reports indicate that interest payments and dividends are not adequately covered by earnings. The company has exhibited a dividend payout ratio exceeding 100%, with figures such as 105.04% cited, raising concerns about the long-term sustainability of its dividend without substantial improvements in profitability. Additionally, the company has reported negative earnings per share (EPS) and return on equity, reflecting underlying profitability issues despite strong revenue growth in some periods.

Finally, Diversified Energy has experienced significant financial impacts from hedging losses. For instance, in the first half of 2022, the company reported an operating loss of $1.18 billion, largely attributed to $1.67 billion in hedging losses, including both settled and unsettled derivatives. While hedging is a common strategy in the energy sector to mitigate price volatility, these substantial losses demonstrate that their hedging activities can introduce considerable financial risk to the business.

Clear emerging threats to Diversified Energy (DEC) include:

• Tightening Methane Emissions Regulations: Governments and regulatory bodies, particularly in the U.S. (e.g., EPA), are increasingly implementing and proposing stricter regulations on methane emissions from oil and gas operations, including existing infrastructure. While DEC has proactively invested in methane emissions reduction technologies and boasts strong ESG performance in this area, the continuous tightening of these rules can lead to significantly increased compliance costs, operational complexities, and potential penalties. This trend poses an escalating financial and operational burden that can impact the profitability and long-term viability of their mature, conventional asset base.
• Decreasing Access to Capital Due to ESG Concerns: There is an accelerating trend among institutional investors, banks, and capital markets to divest from or restrict financing for fossil fuel companies due to environmental, social, and governance (ESG) considerations, particularly climate change. This "green premium" for financing makes it increasingly challenging and potentially more expensive for pure-play oil and gas producers like DEC to secure new debt, refinance existing liabilities, attract equity investors, or fund acquisition-led growth strategies. This shift in capital allocation fundamentally threatens DEC's ability to maintain liquidity and execute its business model.

Diversified Energy Company PLC (DEC) primarily operates in the United States, focusing on the production, marketing, and transportation of natural gas, natural gas liquids, and crude oil, along with providing well retirement services.

The addressable markets for their main products and services in the U.S. are as follows:

• Natural Gas Production and Distribution (U.S.): The U.S. natural gas market is projected to be valued at approximately US$473.4 billion in 2025. U.S. marketed natural gas production is forecasted to reach 118.26 billion cubic feet per day (Bcf/d) in 2025. The U.S. natural gas distribution market was valued at $174.7 billion in 2024 and is projected to grow to $222.5 billion in 2025.
• Natural Gas Liquids (NGL) Production and Distribution (U.S.): The North America Natural Gas Liquids (NGL) market is estimated to be worth USD 7.08 billion in 2024 and is projected to grow to USD 11.53 billion by 2033, with the United States accounting for 92.8% of this market in 2024. Another estimate places the U.S. Natural Gas Liquid (NGL) market size at USD 23.38 billion in 2024, with a projection to reach USD 43.04 billion by 2035. The U.S. NGL production forecast for 2025 is 7.39 million barrels per day (MMBpd).
• Crude Oil Production and Distribution (U.S.): The U.S. crude oil production was a record 13.2 million barrels per day (b/d) in 2024. The U.S. crude oil production forecast for 2025 is 13.59 million barrels per day (MMBpd). The overall U.S. oil and gas market was valued at USD 1.55 trillion in 2024 and is projected to reach approximately USD 1.61 trillion in 2025, and around USD 2.24 trillion by 2034. The upstream sector, which includes crude oil production, accounted for 58.5% of the U.S. oil and gas market share in 2024.
• Well Retirement Services: null

Diversified Energy (symbol: DEC) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Strategic Acquisitions and Expanded Geographic Footprint: Diversified Energy's primary growth catalyst is its strategy of accretive acquisitions. The transformative acquisition of Maverick Natural Resources, valued at $1.275 billion, is anticipated to significantly boost revenue, potentially by 95%, and free cash flow by 55%. This acquisition will also expand DEC's presence into the lucrative Permian Basin and further into the Anadarko Basin. Other bolt-on acquisitions and strategic partnerships, such as the one with The Carlyle Group for up to $2 billion in asset acquisitions, are also expected to be major growth vehicles, allowing the company to acquire and unlock value from mature assets.
2. Operational Synergies and Asset Optimization: The company's business model centers on acquiring mature, low-decline producing wells and optimizing their performance through a "Smarter Asset Management" (SAM) approach. This involves leveraging technology and vertical integration across operations, marketing, and midstream activities to enhance margins and operational efficiency. The integration of the Maverick acquisition alone is targeting run-rate synergies of $50 million, with initial progress suggesting potential to exceed this target. These efforts aim to improve or restore production, reduce unit operating costs, and extend well life, leading to robust cash flow generation.
3. Expansion into Coal Mine Methane (CMM) and Next LVL Energy Initiatives: Diversified Energy is actively growing its adjacent business segments, notably Coal Mine Methane (CMM) capture. This initiative is poised to significantly increase revenue from this segment, with a potential rise of up to 300% from 2024 levels by 2026. The company is also exploring leveraging CMM for data center power requirements through strategic partnerships, presenting a new market opportunity. The Next LVL Energy subsidiary, focused on well retirement, further enhances the company's environmental stewardship and operational scope.
4. Increased Production and Stable Production Profiles: Through its acquisition strategy and effective asset management, Diversified Energy is targeting over 1 Bcf per day of production. The company benefits from a peer-leading, shallow decline profile in its existing assets, which, combined with continuous optimization and new acquisitions, ensures consistent and de-risked production volumes. This stable production forms a strong base for sustained revenue, especially when coupled with advantageous hedging strategies to mitigate commodity price volatility.
5. Midstream and Other Revenue Diversification: Diversified Energy is expanding its midstream infrastructure and other revenue streams. This includes generating cash flow through the divestiture of undeveloped leasehold interests and fixed-price gas delivery contracts to major Gulf Coast LNG export facilities, which supports long-term revenue stability and diversification beyond pure upstream production.

Share Repurchases

• In March 2025, Diversified Energy Company PLC launched a Share Buyback Program, authorized to repurchase up to £52.3 million (approximately $61 million based on year-to-date 2025 figures) of shares by June 30, 2026, or the 2026 Annual General Meeting.
• Year-to-date in 2025 (as of Q3 2025), the company repurchased approximately 5.1 million shares, totaling around $61 million.
• Specific repurchases in 2025 included 129,323 shares in September at an average of $14.24 per share, and 30,623 shares in November at an average of $14.4983 per share.

Share Issuance

• Diversified Energy completed a $225 million equity raise in 2021, representing the largest equity raise on the Main Market for its sector that year.
• In March 2025, the company issued 21,194,213 new common shares, valued at $253.271 million, as part of the consideration for the acquisition of Maverick Natural Resources.
• A secondary offering of 5,713,353 ordinary shares by selling stockholders (EIG and FS/KKR Advisor) was announced in September 2025; Diversified Energy itself did not offer any shares and would not receive any proceeds from this offering.

Inbound Investments

• A strategic partnership with The Carlyle Group, announced by August 2025, involves a $2 billion commitment to provide significant capital flexibility for future acquisitions.

Outbound Investments

• In 2021, Diversified Energy strategically expanded into the Central Region through four acquisitions, which boosted its production capabilities by approximately 50% compared to 2020.
• In March 2025, the company completed the acquisition of Maverick Natural Resources, a transformational deal expected to roughly double revenues and free cash flow.
• Diversified Energy has invested in well retirement infrastructure by acquiring three plugging companies, aiming to offset well retirement costs with third-party revenues.

Capital Expenditures

• Capital expenditures for the first half of 2025 totaled $89 million, with full-year capital expenditures projected to be between $175 million and $185 million.
• A significant focus of capital expenditures includes investments in emission-reduction initiatives, such as those made in 2022 equivalent to 30% of 2021 capital expenditures, to help achieve net-zero Scope 1 and 2 greenhouse gas emissions by 2040.
• The company utilizes capital for its Smarter Asset Management program, which aims to reduce emissions and mitigate natural production declines.