Sam Wahab

Sam Wahab asked if the gas-weighted Sheridan acquisition signals a strategic shift compared to the liquids-heavy Maverick acquisition, inquiring about the company's intent for future acquisitions, Carlyle partnership preferences, and the current landscape for gas versus oil deals given recent price upticks.

Answer

Rusty Hutson, Co-Founder, CEO, and Director, clarified that Diversified Energy's focus is on the value and return an acquisition can provide, rather than the specific commodity (liquids or gas). He explained that Sheridan was attractive due to its geographical fit and opportunities to improve margins. He also noted that the Carlyle partnership does not have a commodity preference but typically targets larger deals, which is why Sheridan was financed independently.

Sam Wahab asked if the gas-weighted Sheridan acquisition signals a strategic shift towards gas, especially considering data center demands and LNG opportunities, and how this aligns with the Carlyle partnership.

Answer

Rusty Hutson, Co-Founder, CEO, and Director, clarified that the company's focus is on acquisition value and return on investment, not specifically on liquids or gas. The Sheridan deal was attractive due to its geographical fit, cost-driving opportunities, and margin increase potential. He noted that the Carlyle partnership also prioritizes return on investment over commodity type, though they typically prefer larger deals, which is why Sheridan was self-funded.