Diversified Energy Company

Greetings. Welcome to Diversified Energy's first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Douglas Criss, Senior Vice President, Investor Relations and Corporate Communications. Thank you. You may begin.

Good morning, and thank you all for joining us today. And welcome to our first quarter 2025 results conference call. With me today are Diversified's founder and CEO, Rusty Hudson, and President and CFO, Brad Gray. Before we get started, I will remind everyone that the remarks on this call reflect the financial and operational outlook as of today May 12, 2025. These outlooks entail assumptions and expectations that involve risks and uncertainties. A discussion of these risks can be found in our regulatory filings. During this call, we also referenced certain non-GAAP and non-IFRS financial measures. Our disclosures regarding those items are found in our earnings materials, on our website, and in our regulatory filings. Additionally, as noted in the first quarter 2025 results announcement issued this morning, all financial and operational metrics and our underlying results represent only two weeks of contribution from our recently closed Maverick Natural Resources acquisition. I will now turn the call over to Rusty.

Thank you, Doug, and thank you all for joining the call today. Before I start my prepared remarks, I want to highlight and emphasize that we have significantly transformed and strengthened our company since the start of the year. I appreciate the tremendous efforts of our employees to deliver outstanding results and live by our culture of getting stuff done to help us be 1-0 every day. This team has positioned Diversified for an exciting future. I am confident that our presentation will reinforce my excitement. Additionally, While we recognize the current uncertainty, increased volatility, and sharp market sell-offs related to tariffs and other factors, we also believe it is essential to address why these items do not affect diversified's fundamental business. Here are a couple of important, unique, and differentiated factors of the diversified business model. We are predominantly a natural gas-focused company with the commodity seeming to have a positive macro outlook and tailwind. We are the only publicly traded PDP champion with a focus on the management of mature producing assets. We are a high cash margin business with a large protective hedge book, paying a fixed rate dividend and maintaining an active share repurchase program. We have built vertical integration and economies of scale to help insulate against inflation. We have built near adjacent businesses in coal mine methane and well retirement. We are financially sound with approximately $450 million in liquidity. Our model is to use low-cost capital to acquire and take advantage of an often overlooked segment of the oil and gas sector that is historically highly cash generative. Bottom line, the magnitude of any tariffs direct or indirect impact on our bottom line financial health is extremely limited. While it's sometimes a challenging environment to operate in, we know that if it's hard, there's opportunity. For those of you following along with our first quarter 2025 results slide deck, which we posted to our IR website this morning, I will cover a few slides and then turn the call over to Brad to discuss a few highlights from our financial results. After Brad, I will provide some additional thoughts on our guidance for our powerful path forward in 2025 before opening the call for your questions. Starting on slide three, we continue to focus the core of our capital allocation strategy around our four key pillars that are really deliverables to judge us by. Systematic debt reduction, returning capital to shareholders through dividend distributions and through share repurchases, and growing the company through accretive and strategic acquisitions. Last year, we checked that box and we continue to build that credibility in 2025. You can see here our progress year to date in 2025. Debt principal reduction totaled approximately $51 million during the first quarter of 2025. Additionally, we returned approximately $59 million to shareholders in the form of dividends and strategic share repurchases. Importantly, we believe our shares remain a compelling investment at current levels, and we will continue to take advantage of the current cycle and market dislocation to opportunistically repurchase shares. And we have accomplished all this while continuing to focus on our growth initiatives with approximately $2 billion in announced acquisitions, inclusive of the recently closed transformational Maverick acquisition. We maintain flexibility in our capital allocation strategy to ensure we deploy capital to the highest value opportunities. Taken together, we believe our capital allocation strategy balances investment in the business, and growth initiatives while enabling a tangible shareholder return framework, all of which creates long-term value to our stakeholders. And we will remain focused on these key strategic pillars. With that, I'll turn it over to Brad to discuss our financials in additional detail.