DEC · Diversified Energy Company PLC

Diversified Energy delivered strong first quarter 2026 results, marked by substantial year-over-year growth across all key operating and financial metrics — production up 39%, total commodity revenue up 69%, and Adjusted EBITDA up 108% — driven by the successful integration of prior-year acquisitions (Maverick Natural Resources and Canvas Energy) and an improved liquids mix (oil + NGLs now 29% of production vs. 18% in 1Q2025). Management attributed the 157% growth in Adjusted Free Cash Flow to both volume expansion and disciplined capital allocation, enabling $94M in shareholder returns and $92M in ABS debt reduction. The quarter also featured two material strategic developments: the April 30, 2026 closing of the Sheridan Acquisition — immediately accretive with ~$52M NTM EBITDA — and the announcement of the Camino Natural Resources joint acquisition with Carlyle, a $1.175B Oklahoma transaction structured to enhance shareholder returns and expand Diversified’s leading position in the basin. Notably, the Company reiterated its full-year 2026 guidance without adjustment despite external volatility from Winter Storm Fern and geopolitical events, underscoring confidence in its low-decline, cash-generative asset base and portfolio optimization program, which generated over $100M in proceeds during the quarter. With pro forma leverage at 2.2x and liquidity of $529M, Diversified remains well-positioned to execute its transformational growth strategy while maintaining its commitment to free cash flow generation and balance sheet strength.