Diversified Energy Company announces the closing of its acquisition of the of high-working interest, operated natural gas properties and related facilities located within eastern Texas

Acquisition Highlights

• Purchase price of $106 million before customary purchase price adjustments
• Acquisition net purchase price of $101 million after customary purchase price adjustments
• PDP reserves of ~170 Bcfe (~28 MMBoe) and a PDP PV10 of ~$155 million(a)
• Current net production of 38 MMcfepd (~6 Mboepd)(b)
• Estimated NTM Adjusted EBITDA of ~$26 million(c)
• Purchase price multiple of ~3.8x(c)

The net consideration for the Acquisition consists of a combination of the issuance of 2,249,650 new US-dollar denominated ordinary shares to the Seller (subject to a customary commercial lock-up agreement), and cash consideration of $71 million, drawing from a senior secured bank facility supported by the acquired assets and existing liquidity. The New shares represents approximately 4.77% of the Company's existing issued share capital.

CEO Rusty Hutson, Jr. commented:
"We are excited to announce the completion of another attractively-priced acquisition of Central Region assets which stands to benefit Diversified as a result of our continued growth in scale and density throughout the asset footprint. We are excited to on board our new employees from Crescent Pass and begin the process of efficient integration and deployment of Smarter Asset Management along with our sustainability initiatives across these assets, while adding robust cash flows that further support our business."

(a) PDP reserves values (including volumes, PV-10 and approximate PV value) calculated using historical production data, asset-specific type curves and an effective date of May 1, 2024 and based on the 4-year NYMEX strip at June 18, 2024 with terminal price assumptions of $3.94/MMBtu and $68.06/Bbl for natural gas and oil, respectively.
(b) Current production based on estimated average daily production for August 2024; Estimate based on historical performance and engineered type curves for the Assets
(c) Based on engineering reserves assumptions using historical cost assumptions and NYMEX strip as of June 18, 2024 for the 12 month period ended July 31, 2025; does not include the impact of any projected or anticipated synergies that may occur subsequent to acquisition Purchase price multiple based on Net Purchase Price and Acquisition's estimated Next Twelve Months (NTM) Adjusted EBITDA (unhedged)

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