Diversified Energy Co

In assessing our performance, the Directors use key performance indicators (“KPIs”) to track our success against our stated strategy. The Directors

assess our KPIs on an annual basis and modify them as needed, taking into account current business developments. The following KPIs focus on

corporate and environmental responsibility, consistent cash flow generation underpinned by prudent cost management, low leverage and adequate

liquidity to protect the sustainability of the business.

Refer to APMs within this Annual Report & Form 20-F for information on how these metrics are calculated and reconciled to IFRS measures.

1 Net Debt-to-Adjusted EBITDA

During 2024 our leverage ratio increased to 3.0x primarily due tofinancing the majority of our acquisitions with debt. We actively manage our balance

sheet and seek to maintain a long-term leverage ratio of approxima tely 2.5x.

2 Adjusted EBITDA Margin

Total revenue, inclusive of settled hedges and adjusted EBITDA decreased 10% and 14%, respectively, in 2024, while adjusted EBITDA margin

remained relatively consistent at 50%. Thedecrease in total revenue, inclusive of settled hedges was primarily due to adecrease in the average realized

sales price, lower production, adecline in hedge settlement gains, and normal declines. The decrease in adjusted EBITDA was driven by adecrease in

commodity pricing andlower production.

3 Adjusted Operating Cost per Mcfe

Adjusted operating cost per Mcfe for 2024 was$1.78, an increase of 1% compared with 2023. This increase was primarily due tohigher employees,

administrative costs and professional services due to investments made in staff and systems and costs related to litigation expense.

4 Net Cash Provided by Operating Activities

Net cash provided by operating activities for 2024 was$346 million, a decrease of 16% compared with 2023. This decrease was due to the decrease in

total revenue resulting from decreases in pricing and production. However, this was partially offset by changes in working capital, which generated$50

million less in cash outflows compared to 2023.

5 Emissions Intensity

Realized a 13% year-over-year reduction in Scope 1 methane emissions intensity, achieved through investments in leak detection technologies,

replacing natural gas-driven pneumatics with instrument air or solar solutions, and enhanced aerial emissions surveillance in our Central Region.

6 Meet or Exceed State Asset Retirement Goals

(a)DEC wells inclusive of 13,21 and 14 Central Region wells retired during 2024,2023 and 2022, respectively.

A total of 215 DEC-owned wells, including 13 in the Central Region, were retired across our operating footprint, surpassing our goal to retire 200 wells

and exceeding our collective state commitments in Appalachia. Additionally, Next LVL Energy plugged a total of 287 wells in Appalachia, including 202

DEC-owned wells and 85 third party-owned wells consisting of 51 state and federal orphan wells and 34 for third party operators.

7 Safety Performance

Our 2024 TRIR was 0.89, a 30% improvement from 2023, driven by a foreman-led safety approach, enhanced good catch/near miss reporting, and a

new safety program for short-service field employees. Additionally, our 2024 LTIR was 0.38, reflecting a 63% improvement from 2023, attributable to

the same initiatives.

Moreover, our 2024 MVA rate was 0.34, a 38% improvement from 2023. This improvement was primarily due to specific actions taken to enhance

performance and accountability, including the implementation of vehicle telemetric monitoring.