Diversified Energy Co

There have been no material changes to the Company’s “Risk Factors” previously disclosed in Part I, Item 1A of our Annual Report

on Form 10-K for the year ended December 31, 2025, except as provided below.

We have limited historical experience as an operator of development programs.

We have initiated an operated development program which will require us to devote additional financial, technical and operational

resources to drilling and completion activities. Development activities generally require us to commit capital substantially in advance

of realizing production and cash flows, which may increase the variability of returns compared to our historical acquisition strategy.

Although we have drilled wells in various basins in the past and we have highly skilled personnel with significant drilling and

completion experience through prior acquisitions, including our Chief Operating Officer, who previously oversaw the drilling program

at Maverick Natural Resources, our historical business model has primarily focused on the acquisition, optimization and operation of

existing producing assets.

Success in development programs depends upon effective well planning, capital allocation, execution of drilling and completion

operations, reservoir evaluation, leasing, permitting, and project management. Executing these operations will require us to engage

and rely upon drilling contractors, completion crews and other oilfield services providers, whose availability, performance and pricing

are outside our control. Our development activities may not achieve expected results, and our returns could be adversely affected if

development costs increase, reserve estimates are revised downward, or wells fail to perform as anticipated. In addition, we cannot

provide assurance that unproved property acquired by us will be profitably developed, that wells drilled in connection with our

development activities will be productive, or that we will recover all or any portion of our investment in such unproved property or

wells.

Our development activities are subject to risks and uncertainties that are not present, or are present to a lesser degree, in our

existing producing asset base.

Historically, a substantial portion of our business has consisted of acquiring and operating existing producing assets. As we increase

our investment in drilling and development activities, we are exposed to additional risks, including:

•dry holes, or wells that are productive but do not produce sufficient volumes to recover drilling and completion and operating

costs, or to achieve targeted returns;

•drilling or completion delays, or the curtailment or cancellation of planned activity;

•cost overruns and increases in drilling and completion costs;

•shortages of or delays in obtaining qualified personnel or equipment, including rigs, pressure pumping crews, tubulars, sand,

water, chemicals and other equipment or critical services;

•unexpected geological conditions;

•drilling hazards and mechanical failures;

•well control incidents, blowouts, fires and environmental events;

•leasing or title problems;

•delays in obtaining permits and regulatory approvals, and environmental, health and safety requirements applicable to drilling

and completion operations;

•adverse weather and surface access constraints;

•inability to secure or dispose of water used in drilling and completion operations; and

•insufficient takeaway, gathering or processing capacity.

Any of these events may result in increases in costs, delays in production, lower-than-expected recoveries, impairment of capital

invested in development projects and reduced returns.

Estimates of reserves, drilling inventory and future development opportunities are inherently uncertain and may prove to be

inaccurate.

The identification of drilling locations and estimates of reserves, estimated ultimate recovery, production profiles and future economic

returns depend upon complex geological, geophysical, engineering and economic analyses. These analyses require assumptions

regarding reservoir characteristics, hydrocarbon recovery, well performance, commodity prices, capital costs and operating expenses.

In evaluating undeveloped acreage, we may rely on seismic data, well logs, core information, production data from offset operators,

geologic models, type curves and other technical information. The interpretation of such information is inherently uncertain.

Actual drilling results may differ materially from our expectations. Wells that we believe are commercially attractive based on seismic

interpretation or geologic analysis may fail to achieve anticipated production rates, recoveries or economic returns. New information

obtained through drilling and production activities may require us to revise reserve estimates, development plans, drilling inventories

and expected future cash flows.

Because drilling and completion occurs over an extended period, the economics of our development activities are subject to changes in

commodity prices between the time we commit capital and the time any resulting production is sold. If we are unable to execute

drilling and completion programs successfully, such failure could materially and adversely affect our business, results of operations,

and financial condition.