Summary of Diversified Energy Company (DEC) FY Conference Call Company Overview - **Company Name**: Diversified Energy Company (DEC) - **Ticker**: DEC - **Market Capitalization**: Approximately $1.3 billion [4] - **Enterprise Value**: Approximately $3.6 billion [4] - **Production**: Approximately 1.2 Bcfe per day of natural gas, equivalent to just under 200 MBOEs daily [5] Core Business Model - Focus on optimizing free cash flow through strategic acquisitions [6] - Operates mature producing assets rather than developing new ones [7] - Significant growth in the Central region (Oklahoma, Texas, Louisiana) with 65% of production from this area [8] - Recent acquisition of Maverick Natural Resources for $1.3 billion, enhancing scale in Oklahoma and entry into the Permian Basin [9] Financial Performance - Achieved over 310% increase in adjusted EBITDA over the past five years [17] - Second quarter production was approximately 1,150 MMcfe per day [17] - Free cash flow generation and steady growth in revenue and adjusted EBITDA [17] - Repurchased approximately $43 million of shares, about 4% of shares outstanding [18] Capital Allocation Strategy - Balanced capital allocation strategy focusing on debt reduction, shareholder returns, and accretive acquisitions [18] - Returned over $2 billion to shareholders through dividends, repurchases, and debt repayments over the past seven years [20] - Guidance for free cash flow generation this year is $420 million, with dividends fixed at $1.01 per share [46] Risk Management - High degree of hedging in commodity prices, approximately 80-85% hedged in the near term [12] - Focus on reducing environmental risks, achieving a 99.5% leak-free status [15][16] - Corporate decline rate is just under 10%, with strategies in place to mitigate this through acquisitions and partnerships [36] Strategic Partnerships - Partnership with The Carlyle Group, which has ring-fenced approximately $2 billion for acquisitions [22] - Carlyle provides both debt and equity financing, allowing DEC to grow its asset base without consolidating debt on its balance sheet [57] Industry Trends and Opportunities - Participation in the growing demand for natural gas, particularly in data centers and LNG markets [24][25] - Incremental revenue generation from capturing coal mine methane, yielding higher prices due to environmental credits [41] - Focus on optimizing existing assets through smarter asset management practices [30] Conclusion - Diversified Energy Company positions itself as a leader in acquiring and optimizing mature producing assets, with a strong focus on cash flow generation and shareholder returns. The strategic partnerships and risk management practices further enhance its growth potential in the evolving energy landscape.

Core Insights - Laurentian Research is a veteran in the resource industry with a Ph.D. in geoscience and extensive investment experience [1] - The Natural Resources Hub aims to help members identify undervalued opportunities in the energy and mining sectors with significant growth potential [1] - The platform offers various resources including weekly newsletters, in-depth analyses, trade alerts, model portfolios, and a community for sharing investment ideas [2][3] Company Overview - The Natural Resources Hub is led by Laurentian Research, focusing on energy and mining sectors [1] - The hub emphasizes finding dividend growth opportunities from long-term growth industries [1] Member Benefits - Members receive weekly newsletters and proprietary analyses to aid in investment decisions [2] - Access to trade alerts and model portfolios is provided to enhance investment strategies [2] - Members benefit from private access to Laurentian Research and a community of fellow investors [2]

Group 1 - The company filed a regulatory document regarding its own share purchase on August 14th, 2025 [1] - The document is available only in French [1] - The attachment includes a declaration of the share buyback dated August 18, 2025 [1]

Core Insights - Amar Family Office and JCDecaux SE announced the purchase of 1.7 million shares of JCDecaux SE at €14.75 per share, reflecting a 0.6% discount from the previous closing price and representing 0.8% of the company's capital [1][2] Company Actions - The share buyback is part of a plan authorized by the Annual General Meeting on May 14, 2025, allowing JCDecaux SE to repurchase up to 10% of its capital, with the acquired shares intended for performance share distribution and potential future M&A financing [2][6] Management Statements - David Amar, Managing Director of Holgespar Luxembourg, expressed confidence in JCDecaux SE's business model and growth strategy, indicating a long-term commitment to increasing their stake [3] - Jean-François Decaux, Chairman and Co-CEO of JCDecaux, welcomed the Amar family as a long-term shareholder, highlighting confidence in the company's growth potential and value creation [3] Key Financial Figures - JCDecaux reported 2024 revenue of €3,935.3 million and H1 2025 revenue of €1,868.3 million [7] - The company operates 1,091,811 advertising panels globally and reaches a daily audience of 850 million people across more than 80 countries [7] - JCDecaux is recognized as the number one outdoor advertising company worldwide, with significant presence in various regions including Europe, Asia-Pacific, Latin America, and Africa [7]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Diversified Energy Company PLC (DEC), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Group 1: Brokerage Recommendations - Diversified Energy Company PLC has an average brokerage recommendation (ABR) of 1.40, indicating a consensus between Strong Buy and Buy, with 80% of the recommendations being Strong Buy from five brokerage firms [2][5]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric, as studies show limited success of brokerage recommendations in predicting stock price increases [5][10]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" recommendation, which may mislead investors [6][10]. Group 2: Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not be up-to-date [9][13]. - For Diversified Energy Company PLC, the Zacks Consensus Estimate for the current year remains unchanged at $2.3, leading to a Zacks Rank of 3 (Hold), suggesting caution despite the favorable ABR [14][15].

Board of Directors Update - Sandra Stash will resign from the Board of Directors effective August 12, 2025, after serving since 2019, leaving in good standing [2][3] - David Turner is expected to replace Ms. Stash as the Senior Independent Director, while Kathryn Klaber will chair the Sustainability Committee, and Martin Thomas will join the Audit & Risk Committee [2][3] Commitment to Board Diversity - The Nomination Committee is dedicated to maintaining a high-quality, diverse board that supports the company's long-term goals [3] - David Johnson, Non-Executive Chairman, expressed gratitude for Ms. Stash's contributions and acknowledged her industry expertise [3] Company Overview - Diversified Energy Company PLC focuses on natural gas and liquids production, transport, marketing, and well retirement [4] - The company employs a differentiated strategy by acquiring long-life assets and investing in them to enhance environmental and operational performance [4] - Recognized for sustainability leadership, the company aims to responsibly produce energy and generate shareholder value [4]

Core Points - Decade Resources Ltd. has successfully closed a flow-through private placement, raising a total of $120,000 [1][2] - The private placement involved the issuance of 4,000,000 flow-through units at a price of 3 cents per unit, each unit consisting of one flow-through common share and one transferable non-flow-through common share purchase warrant [2] - The proceeds from this placement will be allocated to Canadian exploration expenses and critical mineral mining expenditures on the Company's properties in British Columbia [3] Financial Details - The total gross proceeds from the private placement amount to $120,000 [2] - Each warrant issued is exercisable for the purchase of one additional common share at a price of $0.05 per share for a period of 36 months [2] - All securities issued are subject to a statutory hold period of four months, expiring on December 13, 2025 [3]

Financial Data and Key Metrics Changes - The company reported total revenue of approximately $510 million for the quarter, with adjusted EBITDA of $280 million, reflecting a significant year-over-year increase in EBITDA and cash flow, nearly doubling from the previous year [5][19] - Adjusted EBITDA for 2025 reached $418 million, with a second-quarter adjusted EBITDA margin of 63% [19] - Free cash flow for the quarter was $88 million, impacted by approximately $25 million in non-recurring transaction-related costs, while net debt stood at approximately $2.6 billion, showing a 10% improvement in overall leverage [20][21] Business Line Data and Key Metrics Changes - Daily production exit rate for June was approximately 1.14 Bcf per day, with quarterly production averaging over 1.15 Bcf per day, with 65% of produced volumes generated in the expanded Central region [19] - The company has increased its total proved reserves by 65% since year-end 2024, indicating strong asset base resilience [10] Market Data and Key Metrics Changes - The company noted improvements in in-basin natural gas differentials, which are expected to benefit from rising natural gas demand driven by data center developments in the Appalachian region [15][16] - The company is positioned to benefit from the growing demand for natural gas, particularly for power generation and off-grid sources, as indicated by significant investments in the region [61][62] Company Strategy and Development Direction - The company focuses on a disciplined capital allocation strategy centered around debt reduction, returning capital to shareholders, and growing its portfolio through strategic acquisitions [8][10] - The partnership with Carlyle is aimed at supporting accretive acquisitions, with a potential to fund up to $2 billion worth of acquisitions without raising new equity capital [12][13] - The company aims to optimize cash flow from low decline energy assets while enhancing growth through strategic acquisitions [5][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong operational and financial results despite increased market volatility due to external factors [7] - The company anticipates continued growth opportunities in the coming years, particularly in the context of maturing assets and M&A activity [12][13] - Management highlighted the undervaluation of shares and the potential for a re-rate based on strong fundamentals and consistent performance [31][32] Other Important Information - The company has returned approximately $2 billion in shareholder returns and debt repayments since its IPO in 2017, demonstrating a strong commitment to creating shareholder value [10][30] - The company has a healthy liquidity position of approximately $420 million, providing flexibility to navigate volatile markets [21] Q&A Session Summary Question: How does the Oklahoma JV fit into the core portfolio? - Management indicated that the Oklahoma JV is a steady program with potential for expansion into other basins, emphasizing the strong returns and ongoing development opportunities [40][42] Question: How are discussions going with Carlyle regarding dual procurement? - Management confirmed ongoing evaluations of opportunities with Carlyle, emphasizing the importance of disciplined acquisition strategies and the favorable environment for acquisitions due to lower commodity prices [44][45] Question: Can you provide information on land sales expectations? - Management noted higher realizations on undeveloped acreage sales and expressed confidence in additional sales opportunities, particularly in the Permian region [50][54] Question: What is the status of well retirements and third-party business? - Management reported a consistent pace of well plugging activities, with approximately 400 wells expected to be plugged this year, while third-party revenue remains steady [55][57] Question: How does the company view the AI data center opportunity? - Management expressed enthusiasm about the growing demand for natural gas driven by data center developments, highlighting potential pricing benefits and smaller-scale power generation opportunities [61][62] Question: What is the updated synergy capture expectation? - Management raised the synergy capture expectation to approximately $60 million, up from initial estimates of $50 million, citing successful integration efforts and operational efficiencies [64][66] Question: What are the footprint expansion opportunities post-Maverick acquisition? - Management highlighted ongoing portfolio optimization efforts across multiple basins, with confidence in identifying further opportunities for cost synergies and production enhancements [71][75]

Financial Performance & Strategy - Diversified Energy's total stakeholder returns since its 2017 IPO include approximately $2 billion in shareholder returns and debt principal payments[9] - The company completed approximately $2 billion in acquisitions recently[10] - The company made debt principal payments of $130 million[10] - The company's share repurchases are valued at approximately $43 million[10] - Dividend distributions are approximately $62 million[10] - The company's second quarter 2025 adjusted EBITDA was a record $280 million[23] - The company generated $88 million of adjusted free cash flow in the second quarter of 2025[23] Operational Highlights & Future Outlook - Total proved reserves as of July 1, 2025, were 5.98 Bcfe, a 65% increase compared to year-end 2024[11] - The company's second quarter 2025 average production was 1,149 MMcfe/d[24] - The company anticipates approximately $60 million in annualized synergies[61] - The company's 2025 guidance for adjusted EBITDA is between $825 million and $875 million[61]

Core Insights - Diversified Energy Company PLC reported strong interim results for the first half of 2025, achieving performance in line with expectations and highlighting strategic and financial achievements [2][9]. Financial Performance - The company generated total revenue of $804 million for the first half of 2025, reflecting a 79% year-over-year increase from $449 million in the first half of 2024 [5]. - Adjusted EBITDA for the first half of 2025 was $418 million, a 92% increase compared to $218 million in the same period last year [6]. - Free Cash Flow (Adjusted Free Cash Flow) reached $152 million for the first half of 2025, up 49% from $102 million in the first half of 2024 [6]. Production Metrics - Average production for the second quarter of 2025 was 1,149 MMcfepd (192 Mboepd), a 33% increase from 864 MMcfepd in the first quarter of 2025 [5]. - The production volume mix for the second quarter was approximately 73% natural gas, 13% natural gas liquids, and 14% oil [15]. Shareholder Returns - The company returned over $105 million to shareholders year-to-date through dividends and share repurchases [10]. - A dividend of $0.29 per share was declared for the second quarter of 2025 [10]. Strategic Initiatives - The company is on track to achieve its full-year 2025 guidance, with total production expected to be between 1,050 to 1,100 MMcfepd [22]. - A strategic partnership with The Carlyle Group aims to invest up to $2 billion in existing U.S. proved developed producing oil and gas assets, enhancing capital flexibility and supporting long-term growth [11][12]. Operational Efficiency - The integration of Maverick Natural Resources is progressing well, with an increased annualized synergy target of $60 million, up from the previous target of $50 million [10]. - The portfolio optimization program has realized approximately $70 million in cash flow from non-core asset and leasehold divestitures [12]. Market Outlook - The company remains focused on unlocking value through asset optimization and is well-positioned to benefit from trends such as electrification, AI power demand, and U.S. LNG export growth [13][14].