DECPF - Diversified Energy Company Achieves Strong Results with Robust Production and Financial Performance

(NewsDirect)

Diversified Energy Company CEO RustyHutson Jr. joined Steve Darling from Proactive to announce that thecompany is on track with its expectations and is witnessing tangibleoutcomes. In the first quarter of 2024, the company recorded anaverage production of 723 MMcfepd, with an exit rate of 742 MMcfepd.Additionally, Diversified Energy achieved 1Q24 Adjusted EBITDA of $102million and Free Cash Flow of $74 million.

Notably, the company realized a 48% Adjusted EBITDA Margin and aTTM Free Cash Flow Yield of 31%. The prudent hedging program alsoyielded $22 million in gains on settled derivatives, contributing to a28% uplift to Adjusted EBITDA.

Hutson expressed satisfaction with the solid operational andfinancial results, attributing them to the company's strategicfocus on cost reduction opportunities. This focus translated into anotable 7% sequential quarterly operating cost improvement. Moreover,he announced the commencement of operations at the Black Bearprocessing facility, marking a strategic milestone for thecompany.

This achievement underscores Diversified Energy'sability to leverage its in-house expertise to unlock value andgenerate meaningful cash flow. The Black Bear facility, integratedwith the company's natural gas production, is expected tocontribute approximately $9 million in additional margin creationannually. Furthermore, it offers potential upside through theprocessing of third-party gas and accretive bolt-on acquisitions inthe Cotton Valley and Haynesville region.

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Proactive North America

+1604-688-8158

NA-editorial@proactiveinvestors.com

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