Diversified Energy Share Discussion Threads

[redtom1] 23/6/2022 09:59

Anyone got a logical and sensible explanation for the share price drop over the last month?
It was rolling along nicely in the low 120s yet now around 108-109.
Given the energy crisis and threat of Russia closing off Europe gas supply this winter, one might have thought that DEC would be a hot stock!

[pro_s2009] 23/6/2022 03:11

In the interests of the original idea of Plus1 coins, I will be awarding 5 coins to all decent informative posts that get multiple ticks up and are useful to readers of the thread.

So if you find you start getting coins.......your welcome.

[k4r] 22/6/2022 12:38

They have held just under or just over 5% for some time now according to the regular RNSs. Makes you suspect that they are running the auto trades, and I would agree with 11_percent.

[rogerramjett] 22/6/2022 12:33

Why would they do that? They hols just under 5% now but still significant.

[lomand] 21/6/2022 21:55

Err. The discussion was on the volatility of the energy stocks and the correlation (or lack of) with the underlying price of oil/gas with BERI given as another example. This thread has some useful comments and contributors. Please don't ruin it with sarcasm.

[greygeorge] 21/6/2022 21:26

Yes, thank you lomond, it's already been pointed out to me. I must be incredibly stupid, I mean, I thought this DEC board was a board for discussing DEC, and obviously I was mistaken. This 'DEC' board should maybe be re-titled 'DEC - and any random share you care to mention - ' board. Or maybe, JUST maybe it could be called the 'DEC' board, and used for the purpose of discussing DEC only ? I dunno, just putting out there for contemplation.

[lomand] 21/6/2022 13:47

He was talking about the shares of BERI not DEC...

[greygeorge] 21/6/2022 12:35

Thank you redtom1. Silly me, thinking this was a board for discussing DEC.

[redtom1] 21/6/2022 12:10

Greygeorge,

Trying reading 1knocker's post again and you might change your question!!

[greygeorge] 21/6/2022 12:05

1knocker, please share your secret with us - Where have you sold at 140p in the last year ? Where have you sold at 140p EVER ? I mean, I've only been trading this share since last October, buying from 102p upwards, selling from 118p upwards. I know I missed some tops by quite a way, but the best selling price I ever got was 120p and can't find ANY trade that shows a sell anywhere near 140p. So, what's your secret ? Is there some kind of 'Alternative Reality Exchange' you use ? Thanks in advance for sharing your secret with us.

[carcosa] 20/6/2022 16:50

No risk.
They tried it in the 1980's and it was a failure/mistake.
This time around there is no way they would get it through Congress.

[farrugia] 20/6/2022 14:48

what about the risk of a windfall tax in the USA? something like that would impact DEC?

[aleman] 20/6/2022 10:41

Mid and longer end all coming off a little now.

July 2026


free stock charts from uk.advfn.com

[lomand] 19/6/2022 21:17

1knocker. I agree. Of all the commodity/energy options NAT gas looks positive but with less volatility. Looks like we are at peak production in the USA so v little chance of significant new supply coming to market to depress prices. hxxps://youtu.be/p0oPgiTplfs

[1knocker] 19/6/2022 13:23

lomand, DEC seems to be our little secret. One would have thought it would be just what everyone, not least anyone managing an income UT or IT, would give his eye teeth for in this market.

I have long surmised that the share price might be higher if the dividend was lower, that people pass it over as falling in the 'too good to be true' category.Its track record and the market analyst commentaries over the years should have allayed those concerns by now though, at least amongst professional investors.

Ah well. Its an ill wind. If others want to leave it all to us, that's OK by me. Just enjoy our little secret and keep topping up.

[asp5] 18/6/2022 12:26

I believe the price drop is purely technical and not fundamental.

The drop was caused by a UT trade for 3,5M shares where buyers & sellers are matched at the end of day auction period. So just like Apollo above there will be many old orders out there which could kick-in and allow this sell to be filled. Given the size of this trade this will be have been triggered by a large investor or fund.

There was no new information out on Friday - the LNG fire is old news etc., price drops in oil & gas do not impact DEC in 22 (or 23 really) - any fund/serious investor invested in DEC would know this.

As I mentioned in my previous post, Friday was triple witching in the US - if a fund/investor was short of liquidity , had margin to cover etc. and given the state of the markets where most things are down then they may have sold down their DEC position. As DEC over the last 6M was up ~20+% it would be strong candidate to sell in case liquidity was needed to be raised.

I see no news out there that changes the fundamentals re DEC. If this level is maintained I know where my DEC divi is going on June 30th.

[lomand] 18/6/2022 08:09

12% div yield. Lowest cost production hedged for next few years, Debt fixed and amortised, 20% FCF yield, $400MM liquidity & growing. Any demand destruction only likely to reduce industry E&P. Dividends at centre of business model. FCF generated at multiples of that required to replace depletion....or you could buy shares in a high yielding 8-9% house builder facing massive increased building and financing costs and collapsing customer demand in a recession.

[rogerramjett] 18/6/2022 07:56

Wow. What a shafting of a relatively stable stock. Wish I could take advantage but gonna have to sit this drop out. Makes the yield very attractive. Oil and gas prices taking a breather and the closing of options has accentuated drops across the board but my gut feel is the proces for both will remain consistently higher going forward. Higher highs and Higher lows.

[999donkey] 17/6/2022 23:54

A very late 130k sell off late on in the session

[1knocker] 17/6/2022 20:50

Well done Apollo.

In this volatile market it is well worth having a few extreme buy and sells limit orders in place on the off chance they will trigger. They do so more often than one expects.

Even with a share like Blackrock Energy and Resources IT, which is pretty plain vanilla, I have been out and back in three times in the last six months at sell prices in the 140s and buy prices in the 120s. I built the holding over many years at prices between 88 and 51, as an income holding. It never crossed my mind I would make more money on it this year as a trading stock than from the quarterly dividend !

[scrwal] 17/6/2022 19:08

The drop was a result of oil price falling at the wrong time in the trading day. The US markets have moved upwards after the drop ( even though oil is down the 7.7%) including the oil companies which are still showing a daily loss - about half what the UK suffered. Hopefully on Monday we will see an uptick of 2/3p early doors.

[apollocreed1] 17/6/2022 18:41

An old order I had to buy at 112p kicked in as market closed... So totally unwittingly I've added 2700 shares at that price and I'm quite pleased with that.