Diversified Energy Share Discussion Threads

[fred177] 20/5/2022 14:29

im leaving Barclays they are a nightmare

[skinny] 20/5/2022 14:29

A decent broker will remind you when / if the form is about to expire and offer you the chance to renew it.

[woodhawk] 20/5/2022 14:17

ISA or regular sharedealing account nothing to do with it. Only WITHHOLDING tax free within SIPP. Is your W-8BEN still in force? Take it up with Barclays? I'm with IG Index - W-8BEN done all online.

[fred177] 20/5/2022 14:14

ive completed a W 8BEN with Barclays in a trading account they've still witheld 30%, does it only work for an ISA account?

[woodhawk] 20/5/2022 14:03

NO! 30% withholding tax, unless you complete W-8BEN and then it would be 15%. After that, normal ISA rules apply (no further tax).

[time 2 retire] 20/5/2022 13:57

Woodhawk thanks, it's all in an isa so zero tax there then also.
Cheers

[woodhawk] 20/5/2022 13:54

time 2 retire,

Because it's a non-UK company. You will pay 30% withholding tax on your dividends, unless a) within SIPP (no tax at all) or b) you have completed a W-8BEN form (from your broker/platform) which will reduce the withholding tax to 15% of dividend.

[time 2 retire] 20/5/2022 13:35

I joined you all yesterday in Dec and was wondering if anyone can tell me why I didn't pay the usual .5% stamp duty fee? I have googled it but can't find any info. Tia

[asp5] 20/5/2022 10:11

A very interesting read - just highlights the huge potential upside for DEC and others producers if US gas prices converge to European levels.

The current share price strength when markets are currently highly volatile is comforting to see. We are also expecting acquisition announcements over the coming weeks/months that should help to support share price appreciation.

DEC share price is up ~12% YTD plus a div yield of ~11% (depending on purchase price) translates to a 22% return at present with plenty more upside potential plus a secure dividend that protects downside risks.

The good thing is that DEC can keep following this growth model for many years to come.

[meanreverter] 19/5/2022 21:51

A very good read, with a focus on US natural-gas production:

hxxps://4043042.fs1.hubspotusercontent-na1.net/hubfs/4043042/Content%20Offers/2022.Q1%20Commentary/2022.Q1%20GR%20Market%20Commentary.pdf

[10acious] 19/5/2022 19:27

That was an uncrossing trade after the close!

[seanworld] 19/5/2022 16:59

Held well today amongst a sea of red.
A trade of 304k @ 121 at close.


S&P 500 officially in bear market 3837.25, if this breaks below we
are going much lower.


Still of the opinion the FED will continue to inflate, so waiting for a bounce at this level.

[meanreverter] 19/5/2022 15:22

1knocker — “How soon, and what the replacement will be, I do not care to guess.”

From the perspective of a non-US central bank — in particular the PBoC with its $3.1trn forex reserve — the answer is gold. You don't have to love gold to come to that conclusion; all that's needed is to cross the other options off the list. At the top of the cross-off list is the US dollar. Anyone holding a dollar account, even deeming it to be risk-free, is facing a high-single-digit percentage loss of its purchasing power each year. It won't be many years before even the most inert non-US central banker gets to recognize that. For equally compelling reasons, central banks will minimize their forex holdings of euros, yen, pounds, etc.

Of course, gold is inconvenient for transactions on a lesser scale, and fiat currency has a long future, however much its creators continue to defraud its users (who include other central banks!). But the main central-bank storage mechanism will be gold, awaiting swift and timely conversion in small amounts to fiat currency for immediate payment.

A consequence of this transition to gold holdings by central banks, and probably by other big financial institutions, will be an increase in the velocity of circulation of fiat currency. In turn, this will lead to yet more price inflation and prompt further defensive activity by forex-holding central banks. There is massive positive feedback in this loop, likely enhanced by additional currency issuance to prevent an economic slump. Just when and how it will blow up is hard to predict. What will not degrade in these shambles is the gold calmly sitting in the vaults of the central banks.

[1knocker] 19/5/2022 10:33

meanreverter,I agree with that. It seems to me though that the very essence of reserves is that they are available to you when you wish to draw upon them, of a custodian tat it does not pocket what it looks after for you, and of a means of exchange that it is a currency you can use to make purchases and settle your debts. The sanctions, which seemed such a bright and painless way of making war without bullets flying (provided you could not give a toss for those who will starve in the third world) break every one of those principles (obligations), and constitute a fundamental change which will force the whole world to think again about the dollar.

How soon, and what the replacement will be I do not care to guess. Probably there will be a messy period as the tectonic plates begin to slip, and counties are forced to decide whether to jump ship into the Chinese camp, or try to keep a foot in more than one camp, but once an empire, territorial or economic. begins to break up, the disintegration tends to accelerate exponentially.

As the bankrupt replied when asked how his downfall had come about "Imperceptibly at first, and then very quickly'.

[meanreverter] 19/5/2022 10:08

1knocker — Everything you say is true. However, the dollar is still the international currency, and the dollar index holds steady: close to where it was 50 years ago, and to its average since then. The reason is that the alternative currencies are also bad — each in its own way, although sharing many of the same features of debauchery and deceit. The US doesn't need to be an honest guardian of its currency. Given the dollar's head start in size and incumbency, its hegemony will continue as long as its potential rivals are only somewhat less dodgy.

[asp5] 19/5/2022 05:14

The DEC business model and hedges taken out mean that its revenue & hence dividend is not only secure (for many years hence) but that it will also be able to grow the dividend steadily over time - I am expecting a rise to 18c (annualized) later this year once the €350M of liquidity has been deployed on acquisitions.

I do not see any other share in the FTSE 100 or 250 that has an equivalent mix of yield, safety, growth and forward visibility wrt dividends. I also expect credit markets to tighten further which will put DEC in an even stronger position re acquisitions.

I would class DEC as a deep value stock that is well positioned to benefit and ride the current market turbulence. Inflation is currently playing / will continue to play havoc with the expectations baked into many share prices.

[1knocker] 19/5/2022 01:38

This share is my sheet anchor. The company is managed prudently, in a feast or famine sector, and is producing a commodity which the world needs. It is also the only stock I hold with a dividend yield in excess of the rate of inflation.

I am increasingly concerned that the brain dead Biden (or whoever controls him) is going to run the world economy on to the rocks.

The dollar is the world reserve currency. That gives the USA great power, and many privileges. The USA creates dollars at no cost, which other countries buy. It is a true money tree. IN return, those other countries expect that the purchasing power of their reserves held in dollars will broadly be preserved, and that their property rights in those reserves will be respected.

The USA budget excesses threaten the value of the dollar. The wild inflation in the USA was not caused by the Ukrainian war, but by US profligacy. The sanctions rely upon the denial of the right to to use the world reserve currency as a means of exchange, save for transactions approved by Washington,The USA has also expropriated foreign reserves held by Russia, and earlier by Afghanistan and Iran.The west (including, regrettably,the UK) has also expropriated the assets of private citizens (the so called 'oligarchs'). These actions are wholly unlawful. In two 20th century world wars this was not done. Such assets were frozen, but never expropriated - stock;en, to put it bluntly.

Now, no country can afford to trade exclusively in dollars in any international market, nor keep ts reserves in the USA or in any country where the USA can exercise its muscle to cause the government of that country to assist it in its banditry. Even the closeat allies of the USA have cause to be fearful. A voluntary alliance is one thing, reduction to to satellite status subject to US direction by reason of its control of ones reserves and means of trade is quite another.

This must hasten the end of the dollar as the world reserve currency, and with it the need to buy dollars and the the en of the USA money tree. The dollar will fall precipitayely in value (and with it the reserves held in dollars) as the status of the dollar as the currency of world red collapses.

There will be great disruption and wealth destruction. when it will happen, no one can say, but the speed of collapse of empires tends to be exponential.

The sheer folly of the USA in undermining the foundations of its own power and prosperity, and disrupting the whole edifice upon which world trade currently depends, merely to speed the end of a local war between a declining power and acorrupt title country of no world importance beggars belief.

Does the USA have any idea of the consequences of what it is doing? Do any of its allies? Franc, possibly. China certainly. All Beijing's Christmases have come at once, and Xi knows it.

The death toll around the third world from starvation as a result of the disruption of grain sales, the shortage of fertilisers, and fuel price rises will be catastrophic, but uncounted. Certainly many many times all the Russian and Ukrainian casualties. The western governments know this. Does any of them mention it? Do any of them care?

We can only tr to look after ourselves. DEC is a very good starting point.

[aleman] 18/5/2022 15:51

This chart about sums up recent price activity - up a bit - with one qualification. Shorter dates up to nearly 3 years are following the same pattern while not quite hitting new highs, while longer dates are just edging slightly into new high territory.

June 25 contract


free stock charts from uk.advfn.com

[meanreverter] 18/5/2022 08:40

Thanks, Scrwal. I get it now.

[scrwal] 17/5/2022 21:15

The DEC website explains about the tax - it doesn't matter what currency is used 15% tax is deducted outside a SIPP if you have a valid W8-BEN 30% if you don't.

[meanreverter] 17/5/2022 19:28

I hold DEC via an ISA with IG. The problem is that IG takes the dividends in dollars and then pays them after conversion into sterling. Under US tax law, dividends paid in dollars from earnings generated principally in the US (which is the case with DEC) are subject to a 15% US withholding tax.

UK-based shareholders may ask the company to be paid dividends in sterling (which IG does not do at present). Is it the case that, under the UK—US non-double-taxation treaty, dividends in sterling to UK residents paid by a British company are not subject to the 15% US withholding tax?

[redtom1] 17/5/2022 15:37

BIRMINGHAM, Ala., May 16, 2022 /PRNewswire/ -- Diversified Energy Company PLC (LSE: DEC) ("Diversified" or "the Company") acquired privately held Nick's Well Plugging LLC ("NWP"), further expanding its internal well-retirement capacity. NWP is a well-established plugging service provider headquartered in Warren, Ohio with a combined 50+ years of oil and gas experience, including plugging oil and gas wells across Appalachia.

Following a 30-year career with Haliburton, Orville "Nick" Nicholas partnered with his son, Jason Nicholas, and daughter, Tammy Angus, to found NWP in May 2010. As part of the acquisition, Jason and Tammy joined Diversified's existing well retirement subsidiary, Next LVL Energy. Nick will serve as a plugging consultant during a transition period.

NWP, Diversified's second acquisition of a well retirement operation this year, enhances Diversified's ability to maintain and reduce already low well retirement costs by eliminating 3rd-party margins, increasing control over the process and utilizing excess capacity to generate additional revenues.

[rogerramjett] 17/5/2022 15:30

Yep. Thanks Woodhawk. I managed to dog that out. I have mine in an ISA so I'm applying the dividiend yield with that 15% witholding tax included

[woodhawk] 17/5/2022 12:25

No withholding tax if in SIPP, or 15% tax otherwise with W-8BEN.