Significant Revenue Growth Delivers Higher than Expected Full-Year Net-Income and Adjusted EBITDA that Beat Guidance

23% Annualized Improvement in Leverage Ratio, While Also Returning Over $185 Million to Shareholders Through Dividends and Strategic Share Repurchases

2026 Guidance Reflects Confidence in the Business's Stability and Cash Generation Through Commodity Cycles

Celebrating Our 25th Anniversary Year with the Completion of our Milestone of Primary Listing on the NYSE, US Incorporation, and Filing of Full Year GAAP Financials

BIRMINGHAM, Ala., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Diversified Energy Company ("Diversified", "DEC", or the "Company") (NYSE: DEC, LSE: DEC) is pleased to announce its financial and operational results for the fourth quarter and full-year ended December 31, 2025, reporting performance that exceed expectations and key strategic and financial achievements.

Delivering Reliable Results and Strategic Growth

Fourth Quarter 2025 Results

   -- Production exit rate(a):  1,254 MMcfepd (209 Mboepd) 
 
   -- Average production: 1,198 MMcfepd (200 Mboepd) 
 
   -- Total Revenue: $667 million 
 
   -- Net Income: $196 million 
 
   -- Adjusted EBITDA(b): $254 million 
 
   -- Operating Cash Flow: $182 million 
 
   -- Adjusted Free Cash Flow(c): $152 million after $7 million of transaction 
      costs 

Full Year 2025 Results

   -- Average production: 1,086 MMcfepd (181 Mboepd) 
 
   -- Total Revenue: $1,829 million 
 
   -- Net Income: $342 million 
 
   -- Adjusted EBITDA(b): $956 million 
 
   -- Operating Cash Flow: $465 million 
 
   -- Adjusted Free Cash Flow(c): $440 million after $55 million of transaction 
      costs 
 
   -- Capital Expenditures: $185 million 
 
                      Financial and Operational Metrics 
 
                                             YoY                        YoY 
                           4Q25    4Q24    % Change   FY25    FY24    % Change 
Production(Mmcfe/d)        1,198     843        42%   1,086     791        37% 
Production volume mix 
  Natural gas                72%     85%                75%     84% 
  NGLs                       14%     12%                13%     12% 
  Oil                        14%      3%                12%      4% 
Total Revenue(millions)     $667     $59     1,031%  $1,829    $757       142% 
Net Income (millions)       $196  $(106)       285%    $342  $(103)       432% 
Adj. EBITDA(b) (millions)   $254    $139        83%    $956    $470       103% 
Adj. Free Cash Flow(c) 
 (millions)                 $152     $53       187%    $440    $210       110% 
 
 

Financial Strength and Shareholder Returns

   -- Current Liquidity(d): $577 million of credit facility availability and 
      unrestricted cash 
 
   -- ABS principal reduction: Retired $277 million in principal amount 
      outstanding under certain ABS facilities during 2025 
 
   -- Leverage ratio(e): 2.3x as of YE2025; 23% improvement from YE2024 
 
          -- Consolidated debt consists of 73% in non-recourse ABS securities 
 
   -- Shareholder returns: Over $185 million returned via dividends and 
      repurchases(f) 
 
          -- Shareholder return yield(f) of 18% 
 
          -- 7.3 million shares repurchased (10% of outstanding shares), 
             totaling $100 million(f) 
 
          -- New Board authorized share repurchase program for up to 7,800,000 
             shares (10% of shares outstanding) 
 
   -- 4Q25 dividend: $0.29 per share declared 

Strategic Execution and Transformational Growth

$2B of Transformational Acquisitions - Maverick Natural Resources & Canvas Energy: Enhances Diversified's stature as a leading consolidator of established cash-generating energy assets

   -- Positions Diversified as a differentiated business, offering $1.2 
      billion of Pro-Forma Adjusted EBITDA(g), over 1.2 Bcfepd of low decline 
      production, multi-basin commodity diversification, and a strong hedging 
      program that promotes consistent free cash flows 
 
   -- Acquisitions helped deliver over 100% growth in Adjusted EBITDA and 
      Adjusted Free Cash Flow 
 
   -- Integration playbook from 30+ acquisitions and counting allowed for 
      upsized synergy capture of over $60 million on Maverick Natural Resources 
      and over $20 million on Canvas Energy 

Carlyle Partnership Continues to Bolster Growth Prospects

   -- Strategic partnership to invest up to $2 billion in existing U.S. proved 
      developed producing $(PDP)$ oil and gas assets strengthens outlook and 
      conviction on ability to close accretive transactions, while preserving 
      capital flexibility and liquidity 
 
   -- Canvas Energy marked the inaugural transaction and funding from the 
      Carlyle strategic partnership 

Non-Op Platform Provides Additional Lever for Value Generation

   -- New Permian Basin joint development program with a private operator in 
      the Northwest Shelf adds additional optionality to Non-Op platform 
 
   -- Permian partnership included upfront proceeds to DEC for land and working 
      interests, and well-by-well election supporting capital 
      flexibility 
 
   -- Oklahoma Joint Development Partnership continues to produce and estimated 
      over 60% IRRs with 114 wells drilled under the JDA in the last 3 years 
 
   -- Adding incremental production that offsets an estimated 50% of natural 
      decline (2026 estimated avg. 10,800 BOEpd) annually across two 
      partnerships 
 
   -- Superior capital intensity of less than 15% ($140 million capital 
      spend(h)) for Non-Op Partnerships 

Unlocking Value Through Portfolio Optimization

   -- Our Portfolio Optimization Program ("POP") realized $160 million from 
      non-core asset and leasehold divestitures 
 
   -- Our POP highlights optionality in DEC's portfolio to monetize our vast 
      acreage position via Non-Op Partnerships or leasehold divestitures 
 
   -- Generated $9 million of cash flow from environmental credits related to 
      Coal Mine Methane (CMM) in 2025 

Mountain State Plugging Fund & Next LVL Energy

   -- Groundbreaking partnership to establish the nation's FIRST financial 
      assurance fund dedicated to retirement of DEC owned wells (21,000) in 
      the state of West Virginia; represents 25% of total gross well count 
 
   -- Added additional capacity in Appalachia through purchase of CSR Services 
      that increases Next LVL to a total of 25 pole rigs 
 
   -- Permanently retired 484 wells, including 386 Diversified wells 
 
   -- Since establishment of Next Level in 2022, Diversified has retired 1,400 
      wells 

Rusty Hutson, Jr., CEO of Diversified, commented:

"I am grateful to our Diversified employees who delivered an incredible 2025 performance and, measured by most metrics, produced the best operational and financial results in our history. We are pleased to report that these results exceeded the upwardly revised guidance range for Adjusted EBITDA and Adjusted Free Cash Flow, demonstrating once again our culture of execution and accountability. Importantly, with the robust cash flow generated from our assets, we reinforced our proven performance with $277 million in systematic debt reduction, $185 million in combined dividends and share repurchases, and approximately $2 billion in accretive acquisitions for the year.

Our 2026 guidance reflects continued disciplined growth, portfolio optimization, and strong free cash flow generation as we look to unlock additional shareholder value from our high-quality assets. I am very excited about the future of Diversified. Both our team and our portfolio of assets are aligned with powerful megatrends: power generation, data centers, and LNG export. Our unique business model, underpinned by our organizational culture of focused execution to GSD (Get Stuff Done), will enable us to capitalize on these trends and drive long-term shareholder value.

For 25 years we have been in the business of stepping up when others step away. As we celebrate this milestone anniversary, our core beliefs and values upon which the company was founded have not wavered. We have pioneered a strategy of acquiring, operating, and optimizing established energy assets that has allowed us to transform one company's divestiture into our consistent cash flow. Today, we are the single largest operator of established producing wells in the United States, a responsibility we take very seriously, and we maintain a track record of delivering innovation, operational excellence, and results every day.

We were the underdogs, but now we are proven, and we are just getting started."

Operations and Finance Update

Fourth Quarter Production

The Company recorded exit rate production as of December 31, 2025 of 1,254 MMcfepd (209 Mboepd)(a) and delivered 4Q25 average daily production of 1,198 MMcfepd (200 Mboepd). The Company's production volume mix was approximately 72% natural gas, 14% natural gas liquids ("NGL's"), and 14% oil, with approximately 65% of production volumes from the Central region and 35% from Appalachia for the fourth quarter. Production for the quarter continued to benefit from Diversified's peer-leading, shallow decline profile.

2025 Production

The Company recorded average daily production of 1,086 MMcfepd (181 Mboepd). The Company's production volume mix was approximately 75% natural gas, 13% natural gas liquids ("NGL's"), and 12% oil.

Fourth Quarter Margin and Total Cash Expenses per Unit

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