Diversified Energy Share Discussion Threads

[asp5] 17/6/2022 18:39

Trade volume today was ~5,5M that's way higher than normal. A single UT trade for 3,5M shares looks like the cause for this.

Today is triple witching in the US - wonder if this is the underlying cause?

[simplemilltownboy] 17/6/2022 17:45

IMF downgraded world economic growth, this seemed to have all commodities. I expect there's a correction in play at the moment so wouldn't be surprised to see below 110 being revisited soon. GLA

[scrwal] 17/6/2022 17:28

lomand - the company needs acquisitions to offset the production decline. A buy back is remote at any time since it isn't factored into the ARO plan , any surplus cash will be added to the ARO/dividends cash account.

[sf5] 17/6/2022 17:14

Useful site for major/minor commodities

[lomand] 17/6/2022 17:03

Will soon reach a point when a stock buy back makes more sense than an acquisition..

[lomand] 17/6/2022 17:01

Will soon reach a point when a stock buy back makes more sense than an acquisition..

[lomand] 17/6/2022 17:01

Will soon reach a point when a stock buy back makes more sense than an acquisition..

[cassini] 17/6/2022 16:41

Yield ~12.3%

[lomand] 17/6/2022 16:36

You are right...silly me. DEC started to sell off at same time as oil dropped. Considering that the next 2_3 years profits are pretty well locked in with the divs this is looking pretty cheap here...

[cassini] 17/6/2022 16:35

Commodity miners too, e.g. RIO down sharply.

Is the market anticipating demand destruction?

US markets closed Monday so there's an incentive to sell off and get T.F. out of Dodge for the long weekend.

[sf5] 17/6/2022 16:34

Yep - eg SPOG -7% today and -21% over the week.
There's been talk of a US windfall tax but I don't know if it's any closer, eg

[scrwal] 17/6/2022 16:29

Oil dropped 7% so looks like everything under O & G being hit even if they are primarily gas producers at the moment.

[lomand] 17/6/2022 16:05

The other gas pipeline stocked like KMI are also weak today -3-4%

[redtom1] 17/6/2022 15:58

I was going to ask the same question.
I can't find any DEC specific news but it is a little concerning to have a quick 4% drop. Normally something behind it!

[simplemilltownboy] 17/6/2022 15:56

All O and G taking a hit over the last hour,

[lomand] 17/6/2022 15:51

Any know the reason for the sudden drop today'?

[redtom1] 17/6/2022 12:24

The tax rate is reduced to zero in a SIPP based on the double tax treaty between UK and US.
Normally one needs to complete the W-BEN form so that the treaty can be applied, otherwise standard WHT would apply.
But different providers apply the rules in slightly different ways.

[holts] 17/6/2022 10:11

Thanks all .

[flyer61] 17/6/2022 09:44

Joey52 is correct. It is UK listed.

[joey52] 17/6/2022 09:20

I have DEC within my AJ Bell SIPP. When I asked about filling in W-BEN form they said because its held in a pension fund it wasn't required as no tax is taken from pension contributions. If I held it in an ISA I would have had to complete one.

[garycook] 17/6/2022 08:50

Yes,Still need a W-8BEN form completing.It should come up when you bring up the DEC page.It does with HL,but not sure AJ Bell.eg * To buy US shares you must first complete and return a US government ‘W-8BEN’ form.

[holts] 17/6/2022 08:47

Can anyone assist please , If held in a Sipp with AJ BEll does a W-8BEN form need completing or is automatically paid gross in a SIPP ?

[asp5] 16/6/2022 14:34

Despite the dilution from various equity raises since 2017 IPO - DEC share price has moved from 0,65p to ~1,18p now an 81% uptick over 5 years or ~16% pa.

The fundamentals for at least a similar share price increase are clear - in fact analysts currently have share price targets that validate this.

Add in the current 11% div then DEC provides a realistic and conservative ~27+% pa return opportunity over the coming years with low downside risk. Hedging is a core part of delivering this with DEC having made this clear from before their IPO till today (see my previous post).

Given the economic env we are entering (high inflation, increased interest rates, dollar strength etc.), the value of these hedges becomes even more important as it is the mechanism that allows DEC to secure financing & grow.

In short if you like these returns then you have to accept the hedging it is not an optional extra. Otherwise the only options left are to convince the board to change strategy (good luck with that) or go invest elsewhere.

[greygeorge] 16/6/2022 14:33

scrwal - Fair enough. A number of things you've posted previously appear to show you have a very limited, sometimes erroneous, understanding of the US oil and gas industry.