1 September 2023

Diversified Energy Company PLC

("Diversified," "DEC" or the "Group")

Interim Results for the Six Months Ended 30 June 2023

Diversified Energy Company PLC (LSE: DEC) is pleased to announce its Interim Results for the six months ended

30 June 2023 and other recent highlights.

Delivering Reliable Results

•     Record avg. net daily production: 852 MMcfepd (142 Mboepd); +4.4% vs 1H22: 816 MMcfepd (136 Mboepd)

◦     June 2023  exit rate of 864 MMcfepd (144 Mboepd)

•     Maintained industry-leading consolidated corporate decline rate of ~10%

•     Increased 1H23 Adjusted EBITDA^(a) of $283 million (+26% vs 1H22: $224 million)

◦     1H23 Adjusted Cost per Unit of $1.66/Mcfe ($9.96/Boe); -10% vs 2H22: $1.84/Mcfe ($11.04/Boe)^(b)

◦     1H23 Adjusted EBITDA Margin^(c) of 52% (1H22: 48%)

•     Net Income of $631 million, which includes $761 million (pre-tax) of non-cash hedge valuation gain

•     Annualized Free Cash Flow Yield of 32%^(d), excluding the impact of working capital

•     Leverage ratio of 2.4x^(e)

•     Liquidity of ~$103 million

Executing Strategic Objectives

•     Generated $62 million (net) in liquidity through the monetization of non-core assets^(f)

•     Completed $262 million acquisition of complementary Central Region upstream assets^(g)

•     Declared 2Q23 interim dividend of $0.04375 per share (2Q22: $0.04250 per share, +3%)

•     Paid $84 million of dividends to shareholders through 2Q23

Creating Value Through Stewardship

•     Increased MSCI sustainability rating to AA

•     Achieved Project Canary Gold rating for low methane emissions on specific Central Region assets

•     Completed >120,000 upstream surveys, with a post-inspection no-leak rate on ~97% of assets

◦     Included initial inspections for ~75% of Central Region

•     Conducted aerial emissions surveys on ~6,300 miles of midstream systems

•     Permanently retired 174 wells in Appalachia, including 87 Diversified wells

◦     66 of 87 external wells retired in conjunction with state orphan well programs

•     Converted pneumatic devices on 50+ well pads in Central Region, exceeding FY2023 goal of 50 well pads

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

"These results reflect the resilience and consistency of our business. The execution of our disciplined strategic plan and the strength of our operational performance translated directly into strong financial results and allowed the Company once again to generate robust cash margins despite lower natural gas prices. Diversified is the right company at the right time to deliver long-term stakeholder returns while also providing the solution to existing, long-life producing wells that have become non-core assets for other operators.

Our seasoned management team and dedicated field personnel remain highly focused on our stewardship model and have a track record of optimizing the technical, commercial, and operational aspects of acquired assets through our Smarter Asset Management.  During the first half of the year, we again demonstrated Diversified's prudent and proven consolidation strategy with the Tanos II acquisition, while our operations team remained busy finding new and innovative ways to enhance margins by combining productivity enhancements and cost reductions from our existing assets. We will continue to evaluate and execute transactions that are in the best interest of shareholders, and we appreciate the continued and long-term support of our collective stakeholder base as we continue to implement our well-defined growth through acquisition strategy.

Consistent with our strategy, we delivered on our initiative to realize value from undeveloped acreage and non-core assets with over $60 million in cash proceeds. We believe that significant opportunities through outright sales, advantageous joint ventures, or other partnership constructs will provide a catalyst to unlock our net asset value upside and drive organic, no-cost production growth.

We are more excited than ever about the future and look forward to continuing to build a company that provides safe, reliable, and responsibly produced energy while delivering meaningful value to stakeholders."

Posting of 2023 Interim Results Report and Presentation

Diversified has published the Company's 2023 Interim Report on its website at https://ir.div.energy/financial-info and has also made available a supplementary 2023 Interim Results Presentation at https://ir.div.energy/presentations.

Conference Call

DEC will host a conference call today at 12:00pm BST (7:00am EST) to discuss these results. The conference call details are as follows:

Footnotes:

For Company-specific items, refer to the Glossary of Terms and/or Alternative Performance Measures found in the Company's 2023 Interim Report

For further information, please contact:

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.