Diversified Energy Co

We are a party to various routine legal proceedings, disputes and claims arising in the ordinary course of our business, including those

that arise from the interpretation of federal and state laws and regulations affecting the crude oil and natural gas exploration and

development industry, personal injury claims, title disputes, royalty disputes, contract claims, contamination claims relating to crude

oil and natural gas exploration and development and environmental claims, including claims involving assets previously sold to third

parties and no longer part of our current operations. While the ultimate outcome of the pending proceedings, disputes or claims, and

any resulting impact on us, cannot be predicted with certainty, we believe that none of these matters, if ultimately decided adversely,

will have a material adverse effect on our financial condition, results of operations or cash flows.

In April 2023, the Department of Environmental Protection for the Commonwealth of Pennsylvania issued an administrative order to

our subsidiary with respect to certain above ground facilities. We have completed the remedial actions required by the order and the

Commonwealth of Pennsylvania has proposed a civil penalty of approximately$1.9 million, which the Company is reviewing and

engaging with the Department on.

Except as provided above, there have been no material developments with respect to the information previously reported under Part I,

Item 3. “Legal Proceedings” of our Annual Report on Form 10-K for the year ended December 31, 2025.