INVESTOR PRESENTATION JULY 2019 DISCLAIMER The information - PowerPoint PPT Presentation

INVESTOR PRESENTATION JULY 2019

DISCLAIMER The information contained in this confidential document ("Presentation") has been prepared by Diversified Gas & Oil PLC (the "Company"). This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 ("FSMA") and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. This Presentation is not to be disclosed to any other person or used for any other purpose. This Presentation is for general information only and does not constitute an invitation or inducement to any person to engage in investment activity. While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed or implied by these statements. These forward-looking statements are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, prospects, growth, strategies and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as of the date of this Presentation and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Presentation. In furnishing this presentation, the company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this presentation or to correct any inaccuracies in, or omissions from, this presentation which may become apparent. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. In particular, this Presentation does not constitute an offer or invitation to subscribe for or purchase any securities in any jurisdiction and neither this Presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever. This Presentation is confidential and may not be reproduced or otherwise distributed or disseminated, in whole or part, without the prior written consent of the Company, which may be withheld in its sole and absolute discretion. The distribution of this document in or to persons subject to other jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction. 2

DIVERSIFIED GAS AND OIL AIM: DGOC Overview  Founded 2001 with IPO in February 2017  A top Appalachian gas producer; largest on AIM  Mature, PDP w/ low declines of ~5% per year  Focused on safety and environmental stewardship  Adj. EBITDA (cash) margins 50-60% Company  Dividend target of 40% of free cash flows Profile Strong Outlook  Positioned to sustain growth via a strong balance sheet, low leverage, and ~$335MM of liquidity Location  Robust opportunities to acquire synergistic assets  Midstream assets provide optionality; enhance margins  Organic platform of ~7.8 MM largely HBP acres Key Metrics  Smarter Well Management continues to offset natural declines Net Daily Production (a) > 90 MBoepd  June exit production > 90 Mboepd, net (a) 1P PDP Reserves (b) 566 MMboe  Added HG Energy unconventional assets in late April 1P PDP PV10 (b) ~$2.1 Billion Recent  Credit facility borrowing base upsized to $950MM Production Mix (Gas / NGL / Oil) (c) 89% / 10% / 1% Highlights  Year-to-date dividends paid $36MM, shares Net Debt / Adj EBITDA (d) ~2.0x repurchased $32MM and debt principal paid $52MM 1Q19 Annualised Divd/Shr (e) ~14¢  Strong cash flow maintain low Net Debt / Adj EBITDA Market Capitalisation (f) ~₤788 / ~$987 MM of ~2.0x (d) Enterprise Value (g) ~₤1,277 / ~$1,601 MM Footnotes: (a) represents June 2019 Production, as reported in DGO’s July 2019 Operations Update; (b) per Wright & Co independent reserve audit report evaluated at full NYMEX strip pricing as of 31 Apr 2019 plus management’s internal estimate of HG Energy reserves as of 1 Feb 2019 priced at NYMEX strip as of 22 Feb 2019; presented net of ARO; (c) represents production volume mix for 30 June 2019 YTD, as reported in DGO’s July 2019 Operations Update; (d) represents Net Debt as of 30 June 2019 and June 2019 Adjusted EBITDA annualised and adjusted for price and volume seasonality; (e) annualised figure calculated from the 1Q19 dividend declaration of 3.42 cents per share, as published as reported in 13 June 2019 RNS; (f) market capitalisation based on 18 July 2019 close price of 113.5p at conversion rate GBP:USD of 1.253; (g) enterprise value equal to the sum of market capitalisation presented above, and 3 Net Debt of approximately $613 MM, as reported in DGO’s July 2019 Operations Update

1H19 AND RECENT HIGHLIGHTS CONTINUED OPERATIONAL EXCELLENCE THROUGH COMMODITY VOLATILITY OPERATING HIGHLIGHTS FINANCIAL HIGHLIGHTS  1H19 net production averaged 76 Mboepd (a) , up ~295% compared  1H19 adjusted EBITDA of $131 million (a)(b) to 1H18 (19 MBoepd) and up ~22% compared to 2H18 (62 MBoepd)  June 2019 adjusted EBITDA of $24 million (a)  June exit rate net production exceeded 90.2 MBoepd including 69.7  Cash margins of 54% in 1H19 and June 2019 consistent with 1Q19 net MBoepd from wells owned prior to those acquired in the HG despite a period of lower natural gas and natural gas liquids prices transaction, consistent with 2018 year-end exit rate from the same wells  Paid $52 million in debt principal payments since 1 January 19, with net debt of ~$613 million at 30 June 2019 and net debt-to-adjusted  Smarter Well Management continued to offset natural production EBITDA (a) at 2.0x declines with ~430 previously non-producing wells placed back into production since 1 January 2019  Distributed $68 million since 1 January 2019 including $36 million of  dividends and $32 million of share repurchases The HG assets have been successfully integrated into the portfolio and are producing 20.5 MBoepd, in line with expectations  Strong liquidity of ~$335 million (c)  All seller-financed compression projects associated with the HG  Recurring capex (d) of approximately $12 million acquisition are complete and online  Average 1H19 net realised price was $17.87 per BOE ($2.98 per Mcfe), including $0.54 per BOE ($0.09 per Mcfe) of net hedging gains  Net hedge portfolio valued at $60.6 million ($47.1 million is current) (e)  June 2019 Base LOE and Total LOE were ~14% and ~6% lower vs. 4Q18 ($3.42 per BOE and $5.39 per BOE, respectively)  June 2019 G&A expense ($1.12 per BOE) was ~15% lower vs. 4Q18 Footnotes: (a) including ~2 months of production from the HG Energy II (“HG”) assets, (b) Adjusted EBITDA, presented hedged and unaudited, represents earnings before interest, taxes, depletion, depreciation and amortization and adjustments for non-recurring items such as gain on the sale of assets, acquisition related expenses and integration costs, mark-to-market adjustments related to the Company’s hedge portfolio, non-cash equity compensation charges and items of a similar nature, (c) Liquidity includes cash plus amounts available under the Company’s revolving credit facility, (d) excludes one-time investments associated with the Company’s data modernization project and asset integration, (e) As of 30 June 2019 4

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