Core Insights - Diversified Energy Company PLC has successfully closed the acquisition of Maverick Natural Resources, which is expected to significantly enhance revenue and free cash flow, effectively doubling these metrics [5][19] - The company has returned over $59 million to shareholders through dividends and share repurchases year-to-date, demonstrating a commitment to capital allocation [7][19] - The company is on track to achieve its full-year guidance for 2025, with expectations of significant operational synergies and improved cost structures following the Maverick acquisition [19][21] Operational and Financial Results - The company recorded an average production of 864 MMcfepd (144 Mboepd) for Q1 2025, with a March exit rate production of 1,149 MMcfepd (192 Mboepd) [9][10] - Total revenue for Q1 2025 was $295 million, with an operating cash flow of $132 million and an adjusted EBITDA of $138 million, resulting in a 47% adjusted EBITDA margin [5][11][41] - The company achieved a free cash flow of $62 million for Q1 2025, reflecting strong operational performance despite a net loss of $337 million due to non-cash adjustments [5][39] Cost Management and Efficiency - The company has implemented cost-saving initiatives and high-graded staffing to capture efficiencies, aiming to exceed the annualized synergy target of over $50 million [8][19] - Adjusted operating costs per unit increased to $2.00/Mcfe ($12.01/Boe), reflecting the integration of Maverick's operations, but are expected to improve as synergies are realized [11][13] - The company has strategically layered additional hedges at premium contract prices, enhancing its financial position against market volatility [16] Environmental and Regulatory Initiatives - Diversified Energy is actively modernizing well retirement procedures in collaboration with West Virginia regulatory agencies, focusing on environmentally sound and cost-effective methods [17][18] - The company has retired 76 wells as of March 31, 2025, and is on track to meet its goal of retiring 200 wells annually, contributing to stakeholder value and environmental responsibility [18] 2025 Guidance and Outlook - The company has reiterated its full-year 2025 guidance, projecting total production between 1,050 to 1,100 Mmcfe/d, with a capital expenditure range of $165 to $185 million [21][19] - Expected adjusted EBITDA for 2025 is projected to be between $825 million to $875 million, with anticipated adjusted free cash flow of approximately $420 million [21]