Diversified Energy today announced the closing of its acquisition of the proportionate working interest in certain assets within the Company's Central Region from Oaktree Capital Management. Concurrently, the Company also completed an acquisition-related redetermination of the borrowing base of its revolving credit facility (Sustainability Linked Loan, or the "SLL") resulting in a 26% or $80 million increase in the borrowing base to $385 million and estimated post-transaction liquidity of ~$130 million.

Acquisition Highlights

• Purchase price of $410 million before customary purchase price adjustments
• Acquisition net purchase price of $377 million after customary purchase price adjustments
  • PDP reserves of 510 Bcfe (~85 MMBoe) and a PDP PV10 of ~$462 million(a)
• Current net production of 122 MMcfepd (~20 Mboepd)
• Estimated 2024 Adjusted EBITDA of ~$126 million(b)
• Purchase price multiple of ~3.0x(b) and ~PV17 valuation on PDP-only assets
• Includes hedges on ~60% of the Assets 2024 production at an average price of ~$3.89/MMBtu

Consideration for the Acquisition consists of $83 million in deferred cash payments to Oaktree, the assumption of Oaktree's proportionate debt of ~$120 million associated with the ABS VI amortizing note and other expanded liquidity sources.

CEO Rusty Hutson, Jr. commented:
"This transaction represents another deliberate step in our disciplined approach to focus on accretive acquisitions that enhance our scale, deliver margin expansion, and expand free cash flow. The net purchase price of these high quality assets approximates a PV17 valuation and represents a low multiple of the Assets annual cash flows. As the natural acquirer of Oaktree's working interest in the Central Region, the transaction was a unique opportunity to consolidate these assets and represents the culmination of a successful, multi-year partnership with Oaktree. I would also like to thank our financial partners for their continued support, demonstrated by the increase in the borrowing base of our Sustainability Linked Loan, and the highly successful ABS VIII financing."

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