Diversified Energy Dividends - DEC

Diversified Energy Dividends - DEC

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Stock Name Stock Symbol Market Stock Type
Diversified Energy Company Plc DEC London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
-1.20 -1.14% 104.40 13:07:06
Open Price Low Price High Price Close Price Previous Close
102.00 102.00 106.20 105.60
more quote information »
Industry Sector

Diversified Energy DEC Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

bipos: Acquisitions are a vital part of DEC's strategy for protecting and growing its cashflow. There can be no guarantee that the group will be able to continue to source acquisitions at attractive valuations. Question if DEC made no more acquisitions could we not not carry on with present cashflow with the small decline of gas output each year for the next 50 years. Cashflow Boosted as loans outstanding get payed down, but dictated by the price of Gas. But with the dividend to match the cashflow (IF ANY). This risk paragraph in First Berline report sound like if DEC did'nt make any acquisitions the company might not survive. I am invested & I like DEC'S strategy & dividend income, but concern of the comment of risk by First Berline.
cassini: alotto, DEC has a somewhat unusual business model which someone once described as half finance company, half energy company. It hedges its sales well forward. Rumour has it it trades its hedges as and when necessary as well. The company in its presentations explains that it does this because it wants to make sure any loan it takes out will be paid off and not be a captive to events. This apparently leads to a balance sheet that doesn't look very encouraging on the face of it as (as I understand it) if you hedge the gas price going forward it looks like a paper loss if gas rises. I'll be honest, I don't really understand their accounts but they have some stated aims which about how much they'll take out in loans, how much they try to pay as a dividend (minimum) and various other metrics which on the face of it seem sound. I'm in good company though, even analysts find it hard to figure out DEC's accounts. As Gary1966 said, the best metric for DEC seems to be cashflow. The latest DEC presentation is linked to in the header, go and have a look if you like. PS: DEC is not an explorer or driller. They buy existing legacy gas wells at end of life, apply their techniques to screw as much out of the wells as possible then cap and cover them eventually. As such, it is a more predictable business than these small oil explorer companies.
asp5: My take on the current share price weakness is as follows: DEC is really an income stock play so is driven by dividend per share (dps) Given 16c per share divi and a 10% yield premium this equates to a $1.60 target price Taking the exchange rate into account this is approx. 1.14 GBP target In my view the yield premium that covers the inherent ESG sector risk for DEC is something that will fluctuate over time. We have also had a share dilution but not yet seen/received the benefit of an increased dividend from the deals closed. Once the accretive nature of the acquisitions is reflected in the divi then I expect the price to move back north accordingly. In addition until an increased divi is demonstrated there will always be a execution risk concern that the share dilution could impact previously strong dps growth. While not happy - I am comfortable with the current market movements.
plutonian: In the Telegraph today (edit 27 January 2021)... Five British stocks you can rely on for dividends this year ... Diversified Gas & Oil This £810m oil minnow operates wells in the Appalachian Basin in the US and has grown rapidly over the past few years, which has led to sizeable improvements in its profit margin and cash flow. Unlike more speculative options, Diversified Gas & Oil is not focused on the discovery of new projects but the management of mature, existing wells that large operators have discarded. “With production hedged two years out, cash flow is secure and this amply covers the 10pc dividend yield,” said Mr Morrison. The dividend was raised in 2020, marking eight consecutive increases since the company listed. ... hTTps://www.telegraph.co.uk/investing/shares/five-british-stocks-can-rely-dividends-year/
cassini: lab305, I get it, dividends don't make up for capital erosion. Nothing we can do about it though is there except bail out and take our loss if we think we're being stiffed. I happen to believe the present situation is temporary and we all just have to suffer it for a while. There is no profit without risk. This is why getting a good price entry point is essential. I've traded these twice and my average price this time around is £1.12 so I'm underwater too, but not by so much as you obviously. Despite DEC warning of 2021 acquisitions in January (and the market clearly punishing the price back then) I didn't fully visualise the way DEC would do it and got caught out. I'm still ahead on DEC overall though as if you look at the chart you will see a quarterly pattern of rises and falls, which I have traded before. You may (no advice intended) have a chance to redeem your position soon, all things being equal, if we get the usual rise around the next dividend. Nothing is guaranteed though. The choice would then be yours whether to sell out on any acceptable pre-divi rise and hope for the usual fall over the following 4-6 weeks when you may be able to buy back in at a much better price entry point, or take the divi and suffer the disproportionate price sag that usually follows it. I'm going to try this approach again if the price reaches a level where I think the risk/reward is acceptable to me. We'll see in the next four weeks.
freddiehoward: I've just come across this company and I'm considering making an investment for income. I'm trying to make sense of the dividend policy and what the latest deals may mean for the dividend in the next couple of years. Although I can see the deals should be dividend enhancing, I'm afraid I'm finding it difficult to understand the financing and therefore to come to forecast for profit and likely dividend on which to base a decision. Can anyone point me at a reasonably worked starting forecast to start from with some sort of forecast for profit and next year's dividend. Thanks to anyone who will help.
thetrotsky: Actually, I think I many now have answered my own question and am going to have to eat some humble pie. Although DEC is a UK registered company, it's treated as a US corporation by the IRS (hxxps://ir.div.energy/dividend-information). I've also now discovered that dividends received by UK pension schemes (but not ISAs) are exempted from US withholding tax under the UK-US double tax treaty (hxxps://the-international-investor.com/investment-faq/reclaim-withholding-tax-foreign-dividends-isa-sipp). QED a 15% US tax deduction within my wife's ISA is, in fact, correct (most upsettingly!). As far as I can determine you cannot reclaim the 15% US withholding tax. So the moral of this story is, if you must hold dividend paying US stocks (or stocks classed as US stocks by the IRS) then you're better off acquiring them in your pension scheme. Thankfully there isn't (if relevant) any US capital gains tax to pay!
cassini: Looks like that LSE poster I mentioned simply deducted the 14% headline Blackbeard well decline rate off the 15%/16% increase in boe per day from the acquisition. As melody9999 says though, the DEC smarter wells strategy is there to squeeze more out of old wells. It's what they do. That Seeking Alpha report is more nuanced. I still think this is a buying opportunity. Presently a 10.5% dividend yield from a very well-hedged/last man standing sort of energy company. If the forecast increase of 9% in the dividend comes about it'll be paying 11.4% yield at today's price. Of course the price should go up so the yield won't look that high to new buyers.
cassini: Brucie5, That's the thing about high dividend shares, they tend to be low-to-no growth. DEC is a bit of an oddball compared to most high dividend stocks in my view - instead of being large, old players in a saturated market, they're fairly new and are actually growing by acquisition, but they're in a sort of lowish-risk 'dead-end' business where they milk the last gas out of old wells. That and the hedging strategy I think means there won't be much share price growth, but I think some, enough to outpace inflation. Price growth comes with higher risks and DEC seems to try and hedge out as much risk as possible. It's true that companies that have dividends exceeding 10% are at a much higher risk of failure normally, but I believe (hope) that DEC's unusual business model means that doesn't apply here. Don't they have a policy of not paying out more than 40% of income? I believe that 'Stockopedia screen' suggesting risk of bankruptcy isn't based on an analysis of DEC itself, it's just a general observation on companies which reach double-digit dividend returns based on when a share price crashes due to poor company performance yet the dividend used to calculate yield is the historical dividend - which usually gets cut or eliminated when divi time comes around again. Since I'm buying DEC for baseload income like you, low growth is fine by me. I need some level of reasonably predictable income from my SIPP. In a world where the 1% return on premium bonds is considered good for a cash account, getting 10% looks very attractive. I'm just about to buy some more. Since I sold at 123p before the dividend (yes, I missed the top) and bought back in at 115p afterwards, I'm not too fazed by the latest price drop.
pro_s2009: !YOUTUBEVIDEO:1fIpF_wcCTc: Web site : https://www.div.energy/ Latest Presentation : https://d1io3yog0oux5.cloudfront.net/_884d212a3380824de1feafaeefee41b7/dgoc/db/557/4296/pdf/DGO_2020_Interim_Results_Presentation.pdf Interim Results Webinar : https://www.youtube.com/watch?v=od4xArKptro July 2021 First Berlin Research Note : http://www.more-ir.de/d/22690.pdf Diversified Energy Company (DEC) is focused on acquiring and enhancing our gas and oil producing assets in the Appalachian Basin, which cover part of the largest hydrocarbon producing region in the United States. Dividend Dates : Q4 2020 dividend of 4.00 US cents per share Ex-dividend Date: 27 May 2021 Record Date: 28 May 2021 Payment Date: 24 June 2021 Q1 2021 dividend of 4.00 US cents per share Ex-dividend Date: 2 September 2021 Record Date: 3 September 2021 Payment Date: 24 September 2021 Director Trades : 24/05/21 BUY David Turner____124,500 @ 113.51__£141,319.95 21/05/21 BUY Martin Thomas____15,000 @ 111/60___£16,740.00 13/11/20 BUY Melanie Little__ 20,000 @ 113.97____£22,794.00 09/11/20 BUY Bradley Gray_____15,000 @ 109.8____£16,470.00 06/10/20 BUY David Johnson____25,000 @ 104.99____£26,247.00 21/08/20 BUY Melanie Little__ 20,000 @ 109.85____£21,970.00 03/06/20 BUY Bradley Gray____ 20,000 @ 106.40p____£21,280.00 23/04/20 BUY David Turner____ 18,097 @ 89.30p____£16,161.00 23/04/20 BUY David Turner____ 158,900 @ 88.30p____£140,311.00 If DEC held in a SIPP: Stamp Duty: Depends on which broker you use to buy them - see below Withholding Tax:None Outside of SIPP: Stamp Duty: Depends on which broker you use to buy them Withholding Tax: 30% without a W8-BEN and 15% if one completed. W8-BEN has to be completed every 2-3 years IG - no SD II - no SD Hargreaves Lansdown - charge SD X-O.co.uk - charge SD AJBell - charge SD
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