28 June 2023

 Diversified Energy Company PLC

("Diversified" or the "Company")

Strategic Divestiture of Non-Operated Assets

Diversified Energy Company PLC (LSE:DEC) ("Diversified" or the "Company") is pleased to announce the sale of certain non-core, non-operated assets within Diversified's Central Region (the "Assets") for gross consideration of ~$40 million (together with the Assets, the "Transaction").

The Assets include approximately 200 net, non-operated wells producing ~3Mboepd (~17 MMcfepd). The gross consideration represents an approximate 4 times next twelve months cash flow multiple and includes ~85,000 associated net acres located in Oklahoma and Texas. The Transaction also demonstrates Diversified's ability to monetize its non-core assets, adds ~$40 million to the Company's liquidity, and is well-aligned with Diversified's strategic focus on operated PDP properties that benefit from the regional scale, vertical integration, and continuous application of Smarter Asset Management that underpin the Company's industry-leading production declines.

Commenting on the Transaction, CEO Rusty Hutson, Jr. said:

"This divestiture of non-operated properties underscores our commitment to optimise the assets we operate while strategically realising value from assets better suited for other operators and owners. Selling these assets with operating costs higher than those we operate positions us to further reduce our Central Region lease operating expenses and improve operating margins. The sale aligns with our initiative to realize value from non-core and undeveloped acreage. We will use the proceeds from this transaction to increase our liquidity that we can deploy towards our operated PDP-focused strategy designed to generate sustainable cash flows."

Stifel served as the exclusive financial advisor to Diversified in connection with the sale.

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About Diversified Energy Company PLC

Diversified Energy Company PLC is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas related to its US onshore upstream and midstream assets.