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Diversified Energy Reports Strong Second Quarter Results Highlighting Consistent Cash Margins, Year-over-Year Growth, and Disciplined Execution of Maverick Acquisition Integration
BIRMINGHAM, Ala., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Diversified Energy Company PLC (LSE: DEC, NYSE: DEC) today announced its interim results for the six months ended June 30, 2025, reporting performance in line with expectations and highlighting key strategic and financial achievements. Delivering Reliable Results and Strategic Growth as the U.S. PDP Champion Second Quarter 2025 Results (Second Quarter Results Reflect Full Quarter Impact of the Acquisition of Maverick Natural Resources) Production exit rate(a): 1,135 MMcfepd (189 Mboepd) Average production: 1,149 MMcfepd (192 Mboepd) Production volume mix (natural gas, NGLs, oil): 73% / 13% / 14% Total Revenue (including settled hedges)(d): $510 million Operating Cash Flow: $133 million Adjusted EBITDA(b): $280 million Free Cash Flow: Adjusted Free Cash Flow(c) of $88 million after $25 million of nonrecurring transaction costs Annualized Adjusted FCF Yield(c) of 31% Revenue per unit(d): $4.88/Mcfe ($29.28/Boe) Adjusted cost per unit(e):$2.21/Mcfe ($13.26/Boe) First Half 2025 Results Average production: 1,007 MMcfepd (168 Mboepd) Production volume mix (natural gas, NGLs, oil): 77% / 13% / 10% Total Revenue (including settled hedges)(d): $804 million Operating Cash Flow: $264 million Adjusted EBITDA(b): $418 million Free Cash Flow: Adjusted Free Cash Flow(c) of $152 million after $28 million of nonrecurring transaction costs CAPEX: $89 million Non-Op drilling expenditures weighted more in Q2; full-year Capex trending toward low end of guidance Revenue per unit(d): $4.41/Mcfe ($26.46/Boe) Adjusted cost per unit(e): $2.11/Mcfe ($12.66/Boe) Improving Financial and Operational Metrics 1Q25 2Q25 QoQ % Change 1H24 1H25 YoY % Change Production (Mmcfe/d) 864 1,149 33% 746 1,007 35% Production volume mix Natural gas 82% 73% 84% 77% NLGs 12% 13% 13% 13% Oil 6% 14% 3% 10% Total Revenue(d) (millions) $294 $510 73% $449 $804 79% Adj. EBITDA(b) (millions) $138 $280 103% $218 $418 92% Adj. FCF(c) (millions) $64 $88 38% $102 $152 49% Financial Strength and Shareholder Returns Liquidity: $416 million of undrawn credit facility capacity and unrestricted cash Leverage ratio: 2.6x Net Debt to EBITDA; ~13% improvement from YE2024 Consolidated debt consists of ~70% in non-recourse ABS securities ABS principal reduction: Retired $130 million in principal during 1H25 2Q25 dividend: $0.29 per share declared Shareholder returns: Over $105 million returned YTD via dividends and repurchases(f) Share repurchases: ~3.3 million shares repurchased YTD (~4% of outstanding shares), totaling ~$43 million(f) Strategic Execution and Transformational Growth $2 Billion Carlyle Partnership Strategic partnership to invest up to $2 billion in existing U.S. proved developed producing (PDP) oil and gas assets Capitalizes on industry consolidation trends and divestitures of mature producing assets Non-dilutive structure preserves capital flexibility and supports long-term growth Enhances Diversified's stature as a leading consolidator of upstream PDP assets Maverick Integration Update Increasing annualized synergy target to $60M from previously stated $50M, following strong execution during our integration process Efficiency gains through staffing optimization, contract savings, and midstream cost reductions Field-level integration completed in Q2 Technology and administrative integration are on track for 3Q25 completion Unlocking Value Through Portfolio Optimization Portfolio optimization program realized ~$70 million from non-core asset and leasehold divestitures Joint Development Partnership continues to produce >60% IRRs with 124 wells drilled under the JDA in the last 3 years The program highlights optionality in DEC's portfolio to monetize Central Region acreage via non-op drilling or leasehold divestitures Oklahoma midstream transaction provides a no-fee whole-owned pipeline, compression efficiencies, emissions improvement and numerous production optimization projects East Texas portfolio optimization yields incremental cash flow via gathering and processing dedication fees, with potential to increase Black Bear facility throughput to current full capacity of 120 MMcf per day Revenue of ~$6.6 million through June 2025 from Coal Mine Methane (CMM) associated environmental attribute credits Remain on track to grow environmental credit cash flow by 300% from YE 2024 levels Next LVL Energy and Regulatory Updates In the first half of 2025, the Company permanently retired 213 wells, including 170 Diversified wells Since establishment of Next Level in 2022, Diversified has retired 1,112 wells Rusty Hutson, Jr., CEO of Diversified, commented: 'Diversified continues to deliver consistent returns on our assets, along with the expansion of our asset portfolio, reinforcing our position as the U.S. PDP Champion. Our strong first-half performance reflects the resilience of our business model, the quality of our assets, and the dedication of our talented teams. With the successful integration of Maverick progressing on schedule, we are already realizing meaningful synergies and operational efficiencies that enhance our ability to optimize cash flow in our expanded portfolio and drive long-term value from our investments. The strategic partnership with The Carlyle Group marks a transformational milestone for Diversified. This $2 billion commitment underscores confidence in our platform and provides significant capital flexibility to capitalize on the ongoing consolidation of mature producing assets. It also strengthens our ability to scale responsibly, in a non-dilutive manner, while preserving our disciplined approach to capital allocation. We remain focused on unlocking value across our portfolio through asset optimization, which resulted in approximately $70 million of additional cash flow, high return projects with our targeted capital investments, and the continuation of portfolio optimization through Smarter Asset Management (SAM) programs. Our NextLVL team's industry-leading pace of asset retirements and regulatory advancements in West Virginia highlights our commitment to collaborating across our organization and with key stakeholders to solidify our commitment to sustainable operations. As we look ahead, the mega trends of electrification, AI power demand, and US LNG Export growth only strengthen the fundamental outlook for our business. The acceleration of natural gas generation for data center demand in Appalachia creates a line of sight to meaningful in-basin demand, pointing to tighter basis spreads near our footprint in the coming years. While our expansive central region operations are well-positioned to support US Energy dominance in the Gulf Coast, including as a strategic supplier to LNG export terminals. Given Diversified's continued operational excellence, fundamental market tailwinds, and strategic actions to optimize our portfolio of assets, we remain confident in our ability to continue delivering consistent and resilient free cash flow, maintaining a strong balance sheet, and returning meaningful capital to shareholders. Diversified is well-positioned to thrive as a proven portfolio manager of energy assets in today's evolving energy landscape, and we are proud to be the , delivering essential energy while creating long-term value for all stakeholders.' Operations and Finance Update Production The Company recorded exit rate production in June 2025 of 1,135 MMcfepd (189 Mboepd)(a) and delivered 2Q25 average net daily production of 1,149 MMcfepd (192 Mboepd). The Company's production volume mix was approximately 73% natural gas, 13% natural gas liquids ("NGL's"), and 14% oil, with approximately 64% of production volumes from the Central region and 36% from Appalachia for the second quarter. Net daily production for the quarter continued to benefit from Diversified's peer-leading, shallow decline profile. Margin and Total Cash Expenses per Unit Diversified delivered 2Q25 per unit revenues of $4.88/Mcfe(d) ($29.28/Boe) and Adjusted EBITDA Margin(b) of 63% (65% unhedged). Notably, these per unit metrics reflect an increase in both revenues and expenses from the incorporation of greater liquids-related production of Maverick. The Company's per unit expenses are anticipated to improve as the Company implements its playbook to achieve long-term, sustainable synergies and cost savings. For example, General and Administrative expenses compared to prior period levels, despite the higher per unit costs of Maverick, supporting our progress on cost savings and synergy capture. 1Q25 2Q25 1H25 1H24 $/Mcfe $/Boe $/Mcfe $/Boe $/Mcfe $/Boe $/Mcfe $/Boe Average Realized Price $3.57 $21.42 $4.05 $24.30 $3.84 $23.04 $3.05 $18.30 Other Revenue $0.19 $1.14 $0.19 $1.14 $0.19 $1.14 $0.18 $1.08 Total Revenue + Divestitures(d) $3.78 $22.68 $4.88 $29.28 $4.41 $26.46 $3.30 $19.80 Lease Operating Expense $0.91 $5.49 $1.21 $7.26 $1.08 $6.48 $0.66 $3.96 Production taxes $0.21 $1.26 $0.23 $1.38 $0.22 $1.32 $0.15 $0.90 Midstream operating expense $0.23 $1.38 $0.18 $1.08 $0.20 $1.20 $0.26 $1.56 Transportation expense $0.35 $2.10 $0.36 $2.16 $0.35 $2.10 $0.31 $1.86 Total Operating Expense $1.70 $10.23 $1.98 $11.88 $1.85 $11.10 $1.38 $8.28 Employees, Administrative Costs and Professional Fees(g) $0.30 $1.80 $0.23 $1.38 $0.26 $1.56 $0.30 $1.80 Adjusted Operating Cost per Unit(e) $2.00 $12.03 $2.21 $13.26 $2.11 $12.66 $1.68 $10.08 Adjusted EBITDA Margin(b) 47% 63% 56% 49% Share Repurchase Program At the 2025 Annual General Meeting, the Company's share repurchase authority was approved for a maximum of 8,099,015 shares representing 10% of the Company's issued share capital (the "2025 Authorization"). The Company announced details regarding the parameters of a Share Buyback Program (the "Program") on 20 March 2025, pursuant to which the maximum number of shares repurchased shall not exceed 4,756,842 Shares under the Program. Following the 2025 Authorization, the Company announces that the maximum number of shares repurchased under the Program shall be increased to, and shall not exceed, 8,099,015 shares. Year to date, the company has repurchased 3,273,466 shares, representing approximately 4% of the shares outstanding. Combined Company 2025 Outlook The Company is reiterating its previously announced Full Year 2025 guidance. Following the recently completed acquisition of Maverick, Diversified expects to realize significant operational synergies associated with a larger, consolidated position in Oklahoma and the ability to improve the overall cost structure of the Maverick assets while continuing to prioritize returns and Free Cash Flow generation. The following outlook incorporates a nine-month contribution from the recently acquired Maverick assets. 2025 Guidance Total Production (Mmcfe/d) 1,050 to 1,100 % Liquids ~25% % Natural Gas ~75% Total Capital Expenditures (millions) $165 to $185 Adj. EBITDA(1) (millions) $825 to $875 Adj. Free Cash Flow(1) (millions) ~$420 Leverage Target 2.0x to 2.5x Combined Company Synergies (millions) ~$60 (1) Includes the value of anticipated cash proceeds for 2025 asset optimization. Conference Call Details The Company will host a conference call today, Monday, August 11, 2025, at 1:00 PM GMT (8:00 AM EDT) to discuss the 1H25 Interim Results and will make an audio replay of the event available shortly thereafter. US (toll-free) +1 877-836-0271/+1201-689-7805 UK (toll-free) +44 (0)800 756 3429 Web Audio Replay Information Footnotes: (a) Exit rate includes full month of June 2025 production. (b) Adjusted EBITDA represents earnings before interest, taxes, depletion, and amortization, and includes adjustments for items that are not comparable period-over-period; Adjusted EBITDA Margin represents Adjusted EBITDA as a percent of Total Revenue, Inclusive of Settled Hedges. (c) Adjusted Free Cash Flow represents net cash provided by operating activities less expenditures on natural gas and oil properties and equipment and cash paid for interest, and includes proceeds from divestitures; For more information, please refer to the Non-IFRS reconciliations as set out below. (d) Includes the impact of derivatives settled in cash and proceeds from divestitures; For purposes of comparability, excludes Other Revenue of $3 million in 1Q25, $3 million in 2Q25, $6 million in 1H25, and $8 million in 1H24, and Lease Operating Expense of $3 million in 1Q25, $4 million in 2Q25, $7 million in 1H25, and $9 million in 1H24 associated with Diversified's wholly owned plugging subsidiary, Next LVL Energy. (e) Adjusted Operating Cost represent total lease operating costs plus recurring administrative costs. Total lease operating costs include base lease operating expense, owned gathering and compression (midstream) expense, third-party gathering and transportation expense, and production taxes. Recurring administrative expenses (Adjusted G&A) is a Non-IFRS financial measure defined as total administrative expenses excluding non-recurring acquisition & integration costs and non-cash equity compensation; For purposes of comparability, excludes certain amounts related to Diversified's wholly owned plugging subsidiary, Next LVL Energy. (f) Includes the total value of dividends paid and declared, and share repurchases (including Employee Benefit Trust) year-to-date, through August 11, 2025. (g) As used herein, employees, administrative costs and professional services represent total administrative expenses excluding cost associated with acquisitions, other adjusting costs and non-cash expenses. We use employees, administrative costs and professional services because this measure excludes items that affect the comparability of results or that are not indicative of trends in the ongoing business. For Company-specific items, refer also to the Glossary of Terms and/or Alternative Performance Measures found in the Company's Annual Report and Form 20-F for the year ended December 31, 2024 filed with the United States Securities and Exchange Commission and available on the Company's website. For further information, please contact: Diversified Energy Company PLC +1 973 856 2757 Doug Kris dkris@ Senior Vice President, Investor Relations & Corporate Communications FTI Consulting dec@ U.S. & UK Financial Public Relations About Diversified Energy Company PLC Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our unique differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value. Forward-Looking Statements This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations, business and outlook of the Company and its wholly owned subsidiaries (the 'Group'). All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. These forward-looking statements, which contain the words 'anticipate', 'believe', 'intend', 'estimate', 'expect', 'may', 'will', 'seek', 'continue', 'aim', 'target', 'projected', 'plan', 'goal', 'achieve', 'guidance' and words of similar meaning, reflect the Company's beliefs and expectations and are based on numerous assumptions regarding the Company's present and future business strategies and the environment the Company and the Group will operate in and are subject to risks and uncertainties that may cause actual results to differ materially. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company or the Group to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's or the Group's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's or the Group's ability to continue to obtain financing to meet its liquidity needs, the Company's ability to successfully integrate acquisitions, including the acquired Maverick assets, changes in the political, social and regulatory framework, including inflation and changes resulting from actual or anticipated tariffs and trade policies, in which the Company or the Group operate or in economic or technological trends or conditions. The list above is not exhaustive and there are other factors that may cause the Company's or the Group's actual results to differ materially from the forward-looking statements contained in this announcement, Including the risk factors described in the 'Risk Factors' section in the Company's Annual Report and Form 20-F for the year ended December 31, 2024, filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of their date and neither the Company nor the Group nor any of its respective directors, officers, employees, agents, affiliates or advisers expressly disclaim any obligation to supplement, amend, update or revise any of the forward-looking statements made herein, except where it would be required to do so under applicable law. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this announcement, may not occur. As a result, you are cautioned not to place undue reliance on such forward-looking statements. Past performance of the Company cannot be relied on as a guide to future performance. No statement in this announcement is intended as a profit forecast or a profit estimate and no statement in this announcement should be interpreted to mean that the financial performance of the Company for the current or future financial years would necessarily match or exceed the historical published for the Company. Use of Non-IFRS Measures Certain key operating metrics that are not defined under IFRS (alternative performance measures) are included in this announcement. These non-IFRS measures are used by us to monitor the underlying business performance of the Company from period to period and to facilitate comparison with our peers. Since not all companies calculate these or other non-IFRS metrics in the same way, the manner in which we have chosen to calculate the non-IFRS metrics presented herein may not be compatible with similarly defined terms used by other companies. The non-IFRS metrics should not be considered in isolation of, or viewed as substitutes for, the financial information prepared in accordance with IFRS. Certain of the key operating metrics are based on information derived from our regularly maintained records and accounting and operating systems. Adjusted EBITDA & Pro Forma TTM Adjusted EBITDA As used herein, EBITDA represents earnings before interest, taxes, depletion, depreciation and amortization. Adjusted EBITDA includes adjusting for items that are not comparable period-over-period, namely, finance costs, accretion of asset retirement obligation, other (income) expense, (gain) loss on fair value adjustments of unsettled financial instruments, (gain) loss on natural gas and oil property and equipment, (gain) loss on sale of equity interest, unrealized (gain) loss on investment, costs associated with acquisitions, other adjusting costs, loss on early retirement of debt, non-cash equity compensation, (gain) loss on interest rate swaps, and items of a similar nature. Pro forma TTM adjusted EBITDA extends adjusted EBITDA by adjusting for acquisitions or other significant changes that impacted EBITDA over the last twelve months. Adjusted EBITDA and pro form TTM adjusted EBITDA should not be considered in isolation or as a substitute for operating profit or loss, net income or loss, or cash flows provided by operating, investing and financing activities. However, we believe such measure is useful to an investor in evaluating our financial performance because it (1) is widely used by investors in the natural gas and oil industry as an indicator of underlying business performance; (2) helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement; (3) is used in the calculation of a key metric in one of our Credit Facility financial covenants; and (4) is used by us as a performance measure in determining executive compensation. When evaluating this measure, we believe investors also commonly find it useful to evaluate this metric as a percentage of our total revenue, inclusive of settled hedges, producing what we refer to as our adjusted EBITDA margin. The following table presents a reconciliation of the IFRS Financial measure of Net Income (Loss) to Adjusted EBITDA for each of the periods listed: Three Months Ended Six Months Ended (In thousands) March 31, 2025 June 30, 2025 June 30, 2025 June 30, 2024 December 31, 2024 Net income (loss) $ (337,391 ) $ 303,465 $ (33,926 ) $ 15,745 $ (102,746 ) Finance costs 42,820 55,349 98,169 60,581 77,062 Accretion of asset retirement obligations 10,353 13,777 24,130 14,667 16,201 Other (income) expense(1) (644 ) 179 (465 ) (755 ) (502 ) Income tax (benefit) expense 66,790 (60,330 ) 6,460 (97,997 ) (38,954 ) Depreciation, depletion and amortization 70,807 93,398 164,205 119,220 137,264 (Gain) loss on fair value adjustments of unsettled financial instruments 235,070 (157,440 ) 77,630 80,117 108,913 (Gain) loss on natural gas and oil property and equipment(2) 236 5,316 5,552 249 15,059 (Gain) loss on sale of equity interest — — — — 7,375 Unrealized (gain) loss on investment — (6,355 ) (6,355 ) (2,433 ) 6,446 Costs associated with acquisitions 2,885 25,081 27,966 3,724 7,849 Other adjusting costs(3) 5,963 4,856 10,819 10,451 11,924 Loss on early retirement of debt 39,485 — 39,485 10,649 4,104 Non-cash equity compensation 1,825 2,552 4,377 3,669 4,617 (Gain) loss on interest rate swap (35 ) (35 ) (70 ) (100 ) (90 ) Total adjustments $ 475,555 $ (23,652 ) $ 451,903 $ 202,042 $ 357,268 Adjusted EBITDA $ 138,164 $ 279,813 $ 417,977 $ 217,787 $ 254,522 Pro forma TTM adjusted EBITDA(4) $ 952,216 $ 964,028 $ 964,028 $ 584,261 $ 548,570 (1) Excludes $0.2 million, $0.4 million, $0.6 million, $0.5 million, and $0.6 million in dividend distributions received for our investment in DP Lion Equity Holdco during the three months ended March 31 and June 30, 2025, and the six months ended June 30, 2025, June 30, 2024, and December 31, 2024,respectively. (2) Excludes $2 million, $68 million, $70 million, $7 million and $34 million in cash proceeds received for leasehold sales during the three months ended March 31 and June 30, 2025, and the six months ended June 30, 2025, June 30, 2024 and December 31, 2024, respectively, less $6 million, $6 million and $14 million for the three months ended June 30, 2025, and the six months ended June 30, 2025 and December 31, 2024, respectively. (3) Other adjusting costs for the three months ended March 31 and June 30, 2025, and the six months ended June 30, 2025 were primarily associated with one-time personnel-related expenses and legal fees from certain litigation. Other adjusting costs for the six months ended June 30, 2024 were primarily associated with expenses associated with unused firm transportation agreements and legal and professional fees. Other adjusting costs for the six months ended December 31, 2024 were primarily associated with legal fees from certain litigation. (4) Includes adjustments for the trailing twelve months ended March 31, 2025 for the Oaktree, Crescent Pass, and East Texas II acquisitions to pro forma results for a full twelve months of operations. Similar adjustments were made for the trailing twelve months ended June 30, 2025 for the Maverick, Summit, Crescent Pass, and East Texas II acquisitions as well as for the trailing twelve months ended June 30, 2024 for the Oaktree acquisition and for the trailing twelve months ended December 31, 2024 for the Oaktree, Crescent Pass, and East Texas II acquisitions. Net Debt, Net Debt-to-Adjusted EBITDA & Net Debt-to-Pro Forma TTM Adjusted EBITDA As used herein, net debt represents total debt as recognized on the balance sheet less cash and restricted cash. Total debt includes our borrowings under the Credit Facility, borrowings under or issuances of, as applicable, our subsidiaries' securitization facilities, and other borrowings. We believe net debt is a useful indicator of our leverage and capital structure. As used herein, net debt-to-adjusted EBITDA, net debt-to-pro forma TTM adjusted EBITDA, or 'leverage' or 'leverage ratio,' is measured as net debt divided by adjusted EBITDA or pro forma TTM adjusted EBITDA. We believe that this metric is a key measure of our financial liquidity and flexibility and is used in the calculation of a key metric in one of our Credit Facility financial covenants. The following table presents a reconciliation of the IFRS Financial measure of Total Non-Current Borrowings to the Non-IFRS measure of Net Debt and a calculation of Net Debt-to-Adjusted EBITDA and Net Debt-to-Pro Forma Adjusted EBITDA for each of the periods listed: As of (In thousands) March 31, 2025 June 30, 2025 June 30, 2024 December 31, 2024 Total debt $ 2,701,190 $ 2,676,910 $ 1,654,560 $ 1,693,242 LESS: Cash and cash equivalents 32,641 23,743 3,483 5,990 LESS: Restricted cash(1)(2) 106,011 103,158 54,976 46,269 Net debt $ 2,562,538 $ 2,550,009 $ 1,596,101 $ 1,640,983 Pro forma TTM adjusted EBITDA(3) $ 952,216 $ 964,028 $ 584,261 $ 548,570 Net debt-to-pro forma TTM adjusted EBITDA(4) 2.7x 2.6x 2.7x 3.0x(1) Includes adjustments for deferred financing costs and original issue discounts, consistent with presentation on the Statement of Financial Position. (2) The increase of restricted cash as of March 31 and June 30, 2025, is due to the addition of $19 million and $31 million in restricted cash for the ABS X Notes and ABS Maverick Notes, respectively, offset by $4 million for the retirement of the ABS I & II notes. (3) Includes adjustments for the trailing twelve months ended March 31, 2025 for the Oaktree, Crescent Pass, and East Texas II acquisitions to pro forma results for a full twelve months of operations. Similar adjustments were made for the trailing twelve months ended June 30, 2025 for the Maverick, Summit, Crescent Pass, and East Texas II acquisitions as well as for the trailing twelve months ended June 30, 2024 for the Oaktree acquisition and for the trailing twelve months ended December 31, 2024 for the Oaktree, Crescent Pass, and East Texas II acquisitions. (4) Does not include adjustments for working capital which are often customary in the market. Free Cash Flow As used herein, free cash flow represents net cash provided by operating activities, less expenditures on natural gas and oil properties and equipment, and cash paid for interest. We believe that free cash flow is a useful indicator of our ability to generate cash that is available for activities beyond capital expenditures. The Directors believe that free cash flow provides investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and investments, and pay dividends. The following table presents a reconciliation of the IFRS Financial measure of Net Cash from Operating Activities to the Non-IFRS measure of Free Cash Flow for each of the periods listed: Three Months Ended Six Months Ended (In thousands) March 31, 2025 June 30, 2025 June 30, 2025 June 30, 2024 December 31, 2024 Net cash provided by operating activities $ 131,539 $ 132,596 $ 264,135 $ 160,810 $ 184,853 LESS: Expenditures on natural gas and oil properties and equipment (28,031 ) (61,238 ) (89,269 ) (20,848 ) (31,252 ) LESS: Cash paid for interest (41,574 ) (50,680 ) (92,254 ) (47,632 ) (75,509 ) Free cash flow $ 61,934 $ 20,678 $ 82,612 $ 92,330 $ 78,092 ADD: Proceeds from divestitures 1,970 67,655 69,625 9,933 59,048 Adjusted free cash flow $ 63,904 $ 88,333 $ 152,237 $ 102,263 $ 229,470 Free cash flow yield(1) 31 % (1) Annualized second quarter 2025 free cash flow of $88 million and Market Cap of $1.1 billion as of August 8, 2025. Total Revenue, Inclusive of Settled Hedges and Adjusted EBITDA Margin As used herein, total revenue, inclusive of settled hedges, accounts for the impact of derivatives settled in cash. We believe that total revenue, inclusive of settled hedges, is useful because it enables investors to discern our realized revenue after adjusting for the settlement of derivative contracts. As used herein, adjusted EBITDA margin is measured as adjusted EBITDA, as a percentage of total revenue, inclusive of settled hedges. Adjusted EBITDA margin encompasses the direct operating costs and the portion of general and administrative costs required to produce each Mcfe. This metric includes operating expense, employee costs, administrative costs and professional services, and recurring allowance for credit losses, which cover both fixed and variable cost components. We believe that adjusted EBITDA margin is a useful measure of our profitability and efficiency, as well as our earnings quality, because it evaluates the Group on a more comparable basis period-over-period, especially given our frequent involvement in transactions that are not comparable between periods. The following table presents a reconciliation of the IFRS Financial measure of Total Revenue to the Non-IFRS measure of Total Revenue, Inclusive of Settled Hedges and a calculation of Adjusted EBITDA Margin for each of the periods listed: Three Months Ended Six Months Ended (In thousands) March 31, 2025 June 30, 2025 June 30, 2025 June 30, 2024 December 31, 2024 Total revenue $ 346,903 $ 431,162 $ 778,065 $ 368,674 $ 426,167 Net gain (loss) on commodity derivative instruments(1) (52,271 ) 14,617 (37,654 ) 77,749 73,540 Total revenue, inclusive of settled hedges 294,632 445,779 740,411 446,423 499,707 Adjusted EBITDA $ 138,164 $ 279,813 $ 417,977 $ 217,787 $ 254,522 Adjusted EBITDA margin 47 % 63 % 56 % 49 % 51 % (1) Net gain (loss) on commodity derivative settlements represents cash paid or received on commodity derivative contracts. This excludes settlements on foreign currency and interest rate derivatives, as well as the gain (loss) on fair value adjustments for unsettled financial instruments for each of the periods presented.
Yahoo
12-05-2025
- Business
- Yahoo
Diversified Energy Reports Strong First Quarter 2025 Results Driven by Increased Top-Line Revenue Generation and Operational Discipline
BIRMINGHAM, Ala., May 12, 2025 (GLOBE NEWSWIRE) -- Diversified Energy Company PLC (LSE: DEC, NYSE: DEC) is pleased to announce the following operations and trading update for the quarter ended March 31, 2025. **Consolidated operational & financial results for the quarter include only two weeks of Maverick Natural Resources ('Maverick') contribution** Executing Strategic Objectives Closed transformational and accretive acquisition of Maverick Natural Resources Approximately doubling revenues and free cash flow Strengthened balance sheet and increased liquidity Credit facility borrowing base of $900 million with $451 million of current undrawn capacity and unrestricted cash; current leverage ratio of ~2.7x Retired $51 million of debt principal through amortizing debt payments during Q1 2025 Returned over $59 million year-to-date to shareholders through dividends and share repurchases(a) Declared 1Q25 dividend of $0.29 per share Repurchased ~1.5 million shares year-to-date in 2025, representing ~$19 million of share buybacks(a) Advantageously added natural gas hedge volumes in 2026 through 2029 during recent strength in forward curve On track to exceed $40 million in targeted land sales during the first half of 2025 Realized additional Coal Mine Methane (CMM) alternative energy credits with acquired assets from Summit Natural Resources Next LvL Energy collaborated with the State of West Virginia regulatory agencies to modernize well retirement procedures using a method that is environmentally sound, safe, and cost-effective Maverick Integration Full field level integration anticipated by the end of the second quarter with technology, and administrative integration anticipated by the end of the third quarter 2025 On track to exceed the annualized synergy target of over $50 million High-graded staffing and reduced redundancies to capture efficiencies and cost savings Contract savings providing impacts in compression and chemicals Delivering Reliable Results March 2025 exit rate of 1,149 MMcfepd (192 Mboepd)(b) Recorded average 1Q25 production of 864 MMcfepd (144 Mboepd) Total Revenue, inclusive of settled hedges, of $295 million Operating Cash Flow of $132 million, and Net loss of $337 million, inclusive of non-cash unsettled derivative adjustments Achieved 1Q25 Adjusted EBITDA(c) of $138 million and Free Cash Flow(d) of $62 million Realized 47% 1Q25 Adjusted EBITDA Margin(c) 1Q25 Total Revenue, Inclusive of Settled Hedges per Unit(e) of $3.78/Mcfe ($22.68/Boe) 1Q25 Adjusted Operating Cost per Unit(f) of $2.00/Mcfe ($12.01/Boe) Published the 5th annual Sustainability Report, 'Winning Through Collaboration' Rusty Hutson, Jr., CEO of Diversified, commented: 'Diversified is off to a great start in 2025, demonstrating the resilience of our business model in an otherwise volatile business environment while advancing our long-term strategy with the transformational acquisition of Maverick Natural Resources. Despite the broader macroeconomic and geopolitical challenges, we delivered solid operational results and continued growth in free cash flow. We remain committed to effectively allocating capital. Thus far this year, Diversified has returned over $59 million to our shareholders through dividends and share repurchases, while we continue to deleverage naturally from principal paydowns of our debt. We believe our shares remain a compelling investment at current levels, and we will continue to take advantage of the current cycle and market dislocation to opportunistically repurchase shares. At the same time, we have strategically invested in growing our business with our Maverick acquisition. We are highly focused on integration across all operations and functions of the organization, using the disciplined and methodical playbook we have historically executed to drive synergies and cost-saving initiatives that should provide margin expansion over time. We fully expect to exceed our annualized synergy target of $50 million. Despite the current uncertain environment, the Diversified team, with our ONE DEC culture, continues to perform at a high level. Diversified has a proven track record of managing through challenging markets. I am confident that with our highly strategic initiatives, we will capitalize on opportunities and emerge from the current market as an even stronger company, ensuring continued growth and success.' Operations and Finance Update Production The Company recorded exit rate production in March 2025 of 1,149 MMcfepd (192 Mboepd)(b) and delivered 1Q25 average net daily production of 864 MMcfepd (144 Mboepd). Net daily production for the quarter continued to benefit from Diversified's peer-leading, shallow decline profile. The production for the quarter reflects the contribution of only two weeks of Maverick Natural Resources, which closed March 14th, 2025. Margin and Total Cash Expenses per Unit Diversified delivered 1Q25 per unit revenues of $3.78/Mcfe ($22.68/Boe) and Adjusted EBITDA Margin(a) of 47% (55% unhedged). Notably, these per unit metrics reflect an increase in both revenues and expenses from the incorporation of greater liquids-related production of Maverick Natural Resources. The Company's per unit expenses are anticipated to improve as the Company implements its playbook to achieve long-term, sustainable synergies and cost savings. For example, General and Administrative expenses remained relatively consistent with prior period levels, despite the higher per unit costs of Maverick, supporting our progress on cost savings and synergy capture. 1Q25 1Q24 $/Mcfe $/Boe $/Mcfe $/Boe % Average Realized Price(1) $ 3.78 $ 22.68 $ 3.25 $ 19.50 16 % 1Q25 1Q24 Adjusted Operating Cost per Unit(f) $/Mcfe $/Boe $/Mcfe $/Boe % Lease Operating Expense(2) $ 0.92 $ 5.49 $ 0.65 $ 3.91 40 % Midstream Expense $ 0.23 $ 1.40 $ 0.27 $ 1.61 (13 )% Gathering and Transportation $ 0.34 $ 2.06 $ 0.31 $ 1.85 11 % Production Taxes $ 0.21 $ 1.27 $ 0.12 $ 0.74 72 % Total Operating Expense(2) $ 1.70 $ 10.22 $ 1.35 $ 8.11 26 % Employees, Administrative Costs and Professional Fees(g) $ 0.30 $ 1.79 $ 0.33 $ 1.98 (10 )% Adjusted Operating Cost per Unit(f)(2) $ 2.00 $ 12.01 $ 1.68 $ 10.09 19 % Adjusted EBITDA Margin(a) 47 % 49 % (1) 1Q25 excludes $0.04/Mcfe ($0.24/Boe) and 1Q24 excludes $0.05/Mcfe ($0.36/Boe) of other revenues generated by Next LVL Energy.(2) 1Q25 excludes $0.03/Mcfe ($0.22/Boe) and 1Q24 excludes $0.07/Mcfe ($0.39/Boe) of expenses attributable to Next LVL may not sum due to rounding. Opportunistic Layering of Additional Hedges at Premium Contract Prices Diversified has strategically taken advantage of the recent strength of the natural gas price curve to add to the Company's 2026-2029 hedge portfolio and layering additional NYMEX volumes at an average floor price of ~$3.68/MMBtu, which is reflected in the financial derivatives positions as of April 30, 2025. Environmental Update Asset Retirement Progress and Next LVL Energy Update Next LvL Energy partnered with the State of West Virginia regulatory agencies to implement advanced testing protocols and improved technology to help modernize and upgrade well retirement procedures. Through the combined efforts of real-world situation testing and oversight, the State of West Virginia has enacted new asset retirement regulations, with the resulting framework achieving an environmentally sound, safe, and cost-effective methodology. Through the end of the first quarter, the Company has retired a combined 76 wells consisting of operated assets, state well retirements, and contracted retirement activity for third-party operators. Diversified is well-positioned to meet or exceed its retirement goal of 200 wells per year, with 57 operated wells retired as of March 31, 2025. The Company continues to drive stakeholder value via the realization of contractual partnerships to retire assets that eliminate orphaned or abandoned wells in our region and provide revenue to offset the cash costs associated with the retirement of Diversified's wells. Combined Company 2025 Outlook The Company is reiterating its previously announced Full Year 2025 guidance. Following the recently completed acquisition of Maverick, Diversified expects to realize significant operational synergies associated with a larger, consolidated position in Oklahoma and the ability to improve the overall cost structure of the Maverick assets while continuing to prioritize returns and Free Cash Flow generation. The following outlook incorporates a nine-month contribution from the recently acquired Maverick assets. 2025 Guidance Total Production (Mmcfe/d) 1,050 to 1,100 % Liquids ~25% % Natural Gas ~75% Total Capital Expenditures (millions) $165 to $185 Adj. EBITDA(1) (millions) $825 to $875 Adj. Free Cash Flow(1) (millions) ~$420 Leverage Target 2.0x to 2.5x Combined Company Synergies (millions) >$50 (1) Includes the value of anticipated cash proceeds for 2025 land sales. Conference Call Details The Company will host a conference call today, Monday, May 12, 2025, at 1:00 PM GMT (8:00 AM EDT) to discuss the 1Q25 Trading Statement and will make an audio replay of the event available shortly thereafter. US (toll-free) +1 877 836 0271 UK (toll-free) +44 (0)800 756 3429 Web Audio Replay Information Footnotes: (a) Includes the total value of dividends paid and declared, and share repurchases (including Employee Benefit Trust) year-to-date, through May 12, 2025. (b) Exit rate includes full month of March 2025 production from Maverick. (c) Adjusted EBITDA represents earnings before interest, taxes, depletion, and amortization, and includes adjustments for items that are not comparable period-over-period; Adjusted EBITDA Margin represents Adjusted EBITDA as a percent of Total Revenue, Inclusive of Settled Hedges; For purposes of comparability, Adjusted EBITDA Margin excludes Other Revenue of $3 million in 1Q25 and $3 million in 1Q24, and Lease Operating Expense of $3 million in 1Q25 and $4 million in 1Q24 associated with Diversified's wholly owned plugging subsidiary, Next LVL Energy; For more information, please refer to the Non-IFRS reconciliations as set out below. (d) Free Cash Flow represents net cash provided by operating activities less expenditures on natural gas and oil properties and equipment and cash paid for interest; For more information, please refer to the Non-IFRS reconciliations as set out below. (e) Includes the impact of derivatives settled in cash; For purposes of comparability, excludes certain amounts related to Diversified's wholly owned plugging subsidiary, Next LVL Energy. (f) Adjusted Operating Cost represent total lease operating costs plus recurring administrative costs. Total lease operating costs include base lease operating expense, owned gathering and compression (midstream) expense, third-party gathering and transportation expense, and production taxes. Recurring administrative expenses (Adjusted G&A) is a Non-IFRS financial measure defined as total administrative expenses excluding non-recurring acquisition & integration costs and non-cash equity compensation; For purposes of comparability, excludes certain amounts related to Diversified's wholly owned plugging subsidiary, Next LVL Energy. (g) As used herein, employees, administrative costs and professional services represent total administrative expenses excluding cost associated with acquisitions, other adjusting costs and non-cash expenses. We use employees, administrative costs and professional services because this measure excludes items that affect the comparability of results or that are not indicative of trends in the ongoing business. For Company-specific items, refer also to the Glossary of Terms and/or Alternative Performance Measures found in the Company's Annual Report and Form 20-F for the year ended December 31, 2024 filed with the United States Securities and Exchange Commission and available on the Company's website. For further information, please contact: Diversified Energy Company PLC +1 973 856 2757 Doug Kris dkris@ Senior Vice President, Investor Relations & Corporate Communications FTI Consulting dec@ U.S. & UK Financial Public Relations About Diversified Energy Company PLC Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our unique differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value. Forward-Looking Statements This announcement contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations, business and outlook of the Company and its wholly owned subsidiaries (the 'Group'). All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. These forward-looking statements, which contain the words 'anticipate', 'believe', 'intend', 'estimate', 'expect', 'may', 'will', 'seek', 'continue', 'aim', 'target', 'projected', 'plan', 'goal', 'achieve', 'guidance' and words of similar meaning, reflect the Company's beliefs and expectations and are based on numerous assumptions regarding the Company's present and future business strategies and the environment the Company and the Group will operate in and are subject to risks and uncertainties that may cause actual results to differ materially. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Company or the Group to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's or the Group's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of regulators and other factors such as the Company's or the Group's ability to continue to obtain financing to meet its liquidity needs, the Company's ability to successfully integrate acquisitions, including the acquired Maverick assets, changes in the political, social and regulatory framework, including inflation and changes resulting from actual or anticipated tariffs and trade policies, in which the Company or the Group operate or in economic or technological trends or conditions. The list above is not exhaustive and there are other factors that may cause the Company's or the Group's actual results to differ materially from the forward-looking statements contained in this announcement, Including the risk factors described in the 'Risk Factors' section in the Company's Annual Report and Form 20-F for the year ended December 31, 2024, filed with the United States Securities and Exchange Commission. Forward-looking statements speak only as of their date and neither the Company nor the Group nor any of its respective directors, officers, employees, agents, affiliates or advisers expressly disclaim any obligation to supplement, amend, update or revise any of the forward-looking statements made herein, except where it would be required to do so under applicable law. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements in this announcement, may not occur. As a result, you are cautioned not to place undue reliance on such forward-looking statements. Past performance of the Company cannot be relied on as a guide to future performance. No statement in this announcement is intended as a profit forecast or a profit estimate and no statement in this announcement should be interpreted to mean that the financial performance of the Company for the current or future financial years would necessarily match or exceed the historical published for the Company. Use of Non-IFRS Measures Certain key operating metrics that are not defined under IFRS (alternative performance measures) are included in this announcement. These non-IFRS measures are used by us to monitor the underlying business performance of the Company from period to period and to facilitate comparison with our peers. Since not all companies calculate these or other non-IFRS metrics in the same way, the manner in which we have chosen to calculate the non-IFRS metrics presented herein may not be compatible with similarly defined terms used by other companies. The non-IFRS metrics should not be considered in isolation of, or viewed as substitutes for, the financial information prepared in accordance with IFRS. Certain of the key operating metrics are based on information derived from our regularly maintained records and accounting and operating systems. Adjusted EBITDA As used herein, EBITDA represents earnings before interest, taxes, depletion, depreciation and amortization. Adjusted EBITDA includes adjusting for items that are not comparable period-over-period, namely, finance costs, accretion of asset retirement obligation, other (income) expense, loss on joint and working interest owners receivable, gain on bargain purchases, (gain) loss on fair value adjustments of unsettled financial instruments, (gain) loss on natural gas and oil property and equipment, costs associated with acquisitions, other adjusting costs, loss on early retirement of debt, non-cash equity compensation, (gain) loss on foreign currency hedge, net (gain) loss on interest rate swaps and items of a similar nature. Adjusted EBITDA should not be considered in isolation or as a substitute for operating profit or loss, net income or loss, or cash flows provided by operating, investing, and financing activities. However, we believe such a measure is useful to an investor in evaluating our financial performance because it (1) is widely used by investors in the natural gas and oil industry as an indicator of underlying business performance; (2) helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement; (3) is used in the calculation of a key metric in one of the financial covenants under our revolving credit facility; and (4) is used by us as a performance measure in determining executive compensation. When evaluating this measure, we believe investors also commonly find it useful to evaluate this metric as a percentage of our total revenue, inclusive of settled hedges, producing what we refer to as our adjusted EBITDA margin. The following table presents a reconciliation of the IFRS Financial measure of Net Income (Loss) to Adjusted EBITDA for each of the periods listed: Three Months Ended Amounts in 000's March 31, 2025 March 31, 2024 December 31, 2024 Net income (loss) $ (337,391 ) $ (15,145 ) $ (102,033 ) Finance costs 42,820 27,416 37,453 Accretion of asset retirement obligation 10,353 7,183 8,323 Other (income) expense (644 ) (5 ) (295 ) Income tax (benefit) expense 66,790 5,633 (125,052 ) Depreciation, depletion and amortisation 70,807 57,015 73,960 (Gain) loss on fair value adjustments of unsettled financial instruments 235,070 13,552 202,124 (Gain) loss on natural gas and oil property and equipment(1) 236 4 14,330 (Gain) loss on sale of equity interest — — 7,375 Unrealized (gain) loss on investment — — 6,446 Costs associated with acquisitions 2,885 1,519 4,532 Other adjusting costs(2) 5,963 3,693 7,644 Loss on early retirement of debt 39,485 — 2,469 Non-cash equity compensation 1,825 1,268 2,258 (Gain) loss on interest rate swap (35 ) (50 ) (41 ) Total Adjustments $ 475,555 $ 117,228 $ 241,526 Adjusted EBITDA(c) $ 138,164 $ 102,083 $ 139,493 TTM Adjusted EBITDA $ 508,390 $ 497,510 $ 472,309 Pro Forma TTM Adjusted EBITDA(3) $ 952,216 $ 497,510 $ 548,570 (1) Excludes $2 million, $2 million and $8 million in cash proceeds received for leasehold sales during the three months ended March 31, 2025, March 31, 2024 and December 31, 2024, respectively.(2) Other adjusting costs for the three months ended December 31, 2024 were primarily associated with legal fees for certain litigation.(3) Pro forma TTM adjusted EBITDA includes adjustments for respective periods to pro forma results for the full twelve-month impact of intra-period acquisitions (March 31, 2025: Oaktree, Crescent Pass, East Texas II, Summit and Maverick; December 31, 2024: Oaktree, Crescent Pass Energy and East Texas II). Net Debt and Net Debt-to-Adjusted EBITDA As used herein, net debt represents total debt as recognized on the balance sheet less cash and restricted cash. Total debt includes our borrowings under our revolving credit facility and our borrowings under or issuances of, as applicable, our subsidiaries' securitization facilities, excluding original issuance discounts and deferred finance costs. We believe net debt is a useful indicator of our leverage and capital structure. As used herein, net debt-to-adjusted EBITDA, or 'leverage' or 'leverage ratio,' is measured as net debt divided by adjusted trailing twelve-month EBITDA. We believe that this metric is a key measure of our financial liquidity and flexibility and is used in the calculation of a key metric in one of the financial covenants under our revolving credit facility. The following table presents a reconciliation of the IFRS Financial measure of Total Non-Current Borrowings to the Non-IFRS measure of Net Debt and a calculation of Net Debt-to-Adjusted EBITDA and Net Debt-to-Pro Forma Adjusted EBITDA for each of the periods listed: As of Amounts in 000's March 31, 2025 March 31, 2024 December 31, 2024 Total non-current borrowings, net $ 2,544,937 $ 1,066,643 $ 1,483,779 Current portion of long-term debt 156,253 184,463 209,463 LESS: Cash (32,641 ) (3,456 ) (5,990 ) LESS: Restricted cash (106,011 ) (32,828 ) (46,269 ) Net Debt $ 2,562,538 $ 1,214,822 $ 1,640,983 Pro forma TTM adjusted EBITDA(1) $ 952,216 $ 497,510 $ 548,570 Net debt-to-pro forma TTM adjusted EBITDA 2.7x 2.4x 3.0x (1) Pro forma TTM adjusted EBITDA includes adjustments for respective periods to pro forma results for the full twelve-month impact of intra-period acquisitions (March 31, 2025: Oaktree, Crescent Pass, East Texas II, Summit and Maverick; December 31, 2024: Oaktree, Crescent Pass Energy and East Texas II). Free Cash Flow As used herein, free cash flow represents net cash provided by operating activities less expenditures on natural gas and oil properties and equipment and cash paid for interest. We believe that free cash flow is a useful indicator of our ability to generate cash that is available for activities other than capital expenditures. The Directors believe that free cash flow provides investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and investments, and pay dividends. The following table presents a reconciliation of the IFRS Financial measure of Net Cash from Operating Activities to the Non-IFRS measure of Free Cash Flow for each of the periods listed: Amounts in 000'sExcept per share amounts Three Months Ended Three Months Ended Twelve Months Ended March 31, 2025 March 31, 2024 March 31, 2025 Net cash provided by operating activities $ 131,539 $ 106,258 $ 370,944 LESS: Expenditures on natural gas and oil properties and equipment (28,031 ) (9,293 ) (70,838 ) LESS: Cash paid for interest (41,574 ) (23,759 ) (140,956 ) Free Cash Flow(d) $ 61,934 $ 73,206 $ 159,150 Total Revenue, Inclusive of Settled Hedges and Adjusted EBITDA Margin As used herein, total revenue, inclusive of settled hedges, includes the impact of derivatives settled in cash. We believe that total revenue, inclusive of settled hedges, is a useful measure because it enables investors to discern our realized revenue after adjusting for the settlement of derivative contracts. The following table presents a reconciliation of the IFRS Financial measure of Total Revenue to the Non-IFRS measure of Total Revenue, Inclusive of Settled Hedges and a calculation of Adjusted EBITDA Margin for each of the periods listed: Amounts in 000's Three Months Ended Three Months Ended Year Ended March 31, 2025 March 31, 2024 December 31, 2024 Total revenue 346,903 193,624 794,841 Net gain (loss) on commodity derivative instruments(1) (52,271 ) 22,066 151,289 Total revenue, inclusive of settled hedges(c) 294,632 215,690 946,130 Adjusted EBITDA(c) 138,164 102,083 472,309 Adjusted EBITDA Margin(c) 47 % 47 % 50 % Adjusted EBITDA Margin, exclusive of Next LVL Energy(2) 47 % 49 % 51 % (1) Net gain (loss) on commodity derivative settlements represents cash (paid) or received on commodity derivative contracts. This excludes settlements on foreign currency and interest rate derivatives as well as the gain (loss) on fair value adjustments for unsettled financial instruments for each of the periods presented.(2) For purposes of comparability, Adjusted EBITDA Margin excludes Other Revenue of $3 million in 1Q25 and $3 million in 1Q24, and Lease Operating Expense of $3 million in 1Q25 and $4 million in 1Q24 associated with Diversified's wholly owned plugging subsidiary, Next LVL in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
27-01-2025
- Business
- Bloomberg
Diversified Energy to Buy Maverick to Expand US Oil Asset Base
Diversified Energy Company Plc agreed to acquire Texas-based energy producer Maverick Natural Resources to expand its scale as US President Donald Trump makes higher oil production a key priority. Alabama-based Diversified signed a definitive agreement to acquire Maverick, which is in the portfolio of energy and infrastructure investor EIG, for about $1.28 billion, including the assumption of debt, with payment in a mixture of cash and shares, according to a statement on Monday. The deal is expected to close during the first half of 2025 and includes a $50 million break fee payable in certain circumstances.
