Diversified Energy Share Discussion Threads

[hashertu] 13/4/2022 10:10

I had a read of that Ohio Valley article.
Unless there is more that I couldn't access, it seems very limited in detail and strong on sweeping statements.
For example, the $250 million received from the state.
This is a tax credit that only has value if it is used to offset profit. It only kicks in if the price of gas drops below $1.67. DEC has been hedging at $3+, so I don't see that they have benefitted.
It goes on.
Without seeing the article background calculations it is of little use (IMO).

[farrugia] 13/4/2022 10:05

i challenge you to show us a screenshot of your long position!

[flayla] 13/4/2022 10:04

I'm fine with you thinking that farrugia. Actually didn't sell last time because of some of the insights on this thread (which is readable without having an account fyi)

[farrugia] 13/4/2022 09:54

you're short flayla - i can see right thru you lol

if you were really a holder you would have panicked and sold long before this. The headlines were absolutely aghast a few months ago!

The USA needs energy and lots of it if it wants to export to Europe! Enough said!

[seanworld] 13/4/2022 09:47

Flayla 3 posts only (ever) under this user name. So grateful for a large shareholders sharing this old news.

Does brighten up an overcast morning though.

[gary1966] 13/4/2022 09:43

flayla,

But they aren't going out of business anytime soon and leading the industry in terms of retiring wells and monitoring. As I said this is a rehash and it is boring as all this has been dealt with. I cannot speak for other operators though and this article may have been more pertinent if directed at them rather than this witch hunt for DEC, which is what the authors are making it look like by trotting out the same things endlessly.

[flayla] 13/4/2022 09:41

nope, not a shorter. I own a sizeable chuck. Didn't sell during the bloomberg report, but im seriously considering, hope i can get some feedback on the new report, not sure what to make of it

[flyer61] 13/4/2022 09:38

Yep.....nothing new in Flayla's post.

[seanworld] 13/4/2022 09:36

flayla
Member since: 13 Apr 2022

[farrugia] 13/4/2022 09:33

flayla are you a shorter?

[flayla] 13/4/2022 09:27

From the report, doesn't look too good:
“Diversified Energy, the nation’s largest owner of oil and gas wells, does not have enough funds to plug its entire inventory of assets, research from the Ohio River Valley Institute shows. If Diversified or other companies that own low-producing wells in the region were to go out of business, states could be on the hook for billions in plugging costs since operators are not required to set aside sufficient funding for well decommissioning upfront.

States require the company to plug and abandon wells that no longer produce oil or gas. But Diversified has extended its decommissioning obligations and skirted plugging costs by employing uncommon accounting practices, the report finds.

“Diversified claims it can plug wells at a cost less than half the industry average. They claim their dying wells will continue producing at an economic rate for decades.” said report author and ORVI Research Fellow Kathy Hipple. “These unusual assumptions—as well as accounting practices that function to punt cleanup costs down the line—are not used by any other company in the industry.”

ORVI’s analysis also indicates that Diversified has used a variety of tactics to under-represent total emissions of methane, a potent greenhouse gas.

“Our investigation shows a pattern of startling drops in company-reported emissions after Diversified buys leaking wells from other owners. In Pennsylvania, wells purchased by Diversified log about 90% fewer emissions than the same wells under previous ownership. The company has flouted the regulatory system by publishing aberrant reports, exploiting legal loopholes, and skirting testing responsibilities,221;

[aleman] 13/4/2022 09:17

Futures look like they might be starting to calm a little? This is the cheapest month - April 2025 - in a series that covers over 12 years. Remember that Rusty said they make lots of cash with gas over $3. Most winter contracts are pushing $5 or slightly more.


free stock charts from uk.advfn.com

[gary1966] 13/4/2022 09:11

Clickable link to the above.



This just looks like a rehash of what came out previously. They obviously feel obligated to trot it out repeatedly on a regular basis but it is boring reading the same stuff time and time again.

[flayla] 13/4/2022 09:05

New report from think tank ORVI calling Diversified Energy "A Business Model Built to Fail Appalachia"

hxxps://ohiorivervalleyinstitute.org/diversified-energy-a-business-model-built-to-fail-appalachia/

[flyer61] 13/4/2022 09:04

Yes good question. This mornings announcement maybe preempting another Bloomberg hatchet job. I am going to look through this (if it comes) the US is going all out to supply Europe with gas so I believe DEC will weather any journalist mischief making...

[farrugia] 13/4/2022 09:01

i think some of our investors are very tight scrooges who only care about the money. We need to continue these emission controlling measures to keep the business sustainable! Anyway I added on the dip.

[simplemilltownboy] 13/4/2022 08:56

No idea, just the usual up a bit, down a bit. Looking forward to the acquisition, hopefully it will be a big unhedged one, so they can lock in some higher prices. GLA

[farrugia] 13/4/2022 08:30

why is this down? am i missing something? this news sounds like good news not bad?

[aleman] 12/4/2022 17:40

I'm not posting them today. They're all up a bit again.

[aleman] 11/4/2022 20:46

May 2022, 2024 and 2026 contracts and then Dec 2022 as a bonus since it's the first to break $7:


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free stock charts from uk.advfn.com


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[smidge21] 11/4/2022 08:16

They forward sell to stabilise revenue which looks idiotic when prices surge and inspired when prices slump; their main risk is a production shortfall that leaves them unable to deliver the product promised. It should be remembered that the slope of the forward curve can vary considerably and wont always be positive.

[flyer61] 11/4/2022 08:04

Interesting thread. Have a small holding here but am thinking of 8ncreasing. As time marchs on surely they will be able to sell forward and lock in at higher prices? Or is it not that simple….

[gary1966] 09/4/2022 19:40

Slight caveat is that Rusty and co still see gas prices staying in their long term range of $2.50-3.50 and are on record as saying that. They need to change this mentality if we are to benefit from the prices quoted above longer term otherwise we will be fully hedged before prices have a chance to get there.

[sunbed44] 09/4/2022 15:25

Good post mate. I think we all know forecasting in this industry is very difficult with so much volatility and global macro changes. So any forecast should come with a huge +/- contingency factor.