Diversified Energy Share Discussion Threads

[lord gnome] 25/7/2022 08:25

Partly right Pro, but fossil fuels have also contributed greatly to the damage done.

[pro_s2009] 25/7/2022 08:13

End of the day - climate change is caused by two interlinked factors

Deforestation - we lose 10 billion trees every year.\

Population explosion - too many people - causing trees to be cut down to make space for more humans and their resources needs.


Tree loss is the only reason of climate change - but nobody really wants to talk about it - easier to blame oil and gas and cow farts than face the truth.

Put the tree population back to what it was 100 years ago, it would get much cooler and "back to normal"..........

[shanklin] 25/7/2022 08:08

...and completely unreliable without massive energy storage of some sort which the UK has not even started to do anything about.

Eco super-glue users have no answer for this requirement.

[lord gnome] 23/7/2022 08:15

Yes, I am sure that generating electricity from gas is very efficient- but it ain’t green and it ain’t renewable. You need a reliable source of gas and it has to be affordable. Wind turbine power is developing rapidly and is becoming more competitive. We also have lots of wind and it’s free.

[farrugia] 22/7/2022 09:29

why is this still under 120 - its baffling!!

[aleman] 22/7/2022 08:29

Oh. Thanks for putting me right, TMS.

[themadstork] 21/7/2022 17:55

The jump in US prices was down to lower than expected weekly storage injections.

[aleman] 21/7/2022 16:39

Not sure how this affects things.



The US price seemed to peak when National Grid stopped accepting US LNG at Milford Haven because the UK had too much gas - i.e. was basically trying to import it faster than it could be pumped across to France at a hefty profit and so was overpressuring the UK grid system. When colder weather kicks in and the UK uses more, National Grid will probably restart LNG imports at Milford Haven with the kicker that it might also start filling Rough Storage when permissions are given. The extra demand will probably add a bit to US prices in the same way it took a bit off after May. I say probably because it's a global market and prices in Europe could fall so the US might look to move it somewhere else like Asia if they have a cold snap - who knows?

All the US futures up to the winter have had a small jump in price on this news, though that already seems to be fading away a bit such that it probably won't be noticed on longer term charts.

[scrwal] 21/7/2022 12:27

Biden's new plan apparently includes $385m to help fund air conditioning units in homes and community cooling centres.

[mrnumpty] 20/7/2022 22:22

Podgyted . In order to obtain a daily update on what is happening in the US natural gas market , Google “ Natursl Gas US price “ , then go to the site “ http/tradingeconomics.com.Nat” , and then “ Natural gas -2022 data …. “ .

[mrnumpty] 20/7/2022 20:03

Podgyted . I haven’t checked today , but various websites are stating that it is very hot in the USA , too , meaning increased need for electricity for air conditioning and refrigeration , thus higher spot prices for gas with which to generate electricity .

[podgyted] 20/7/2022 18:13

Somewhat of a spike in US Nat Gas at the moment - any reason ? Other than speculation over Nord 1.

[mrnumpty] 20/7/2022 14:23

Incidentally , I forgot to point out this morning but that one of the reasons for Simon Thompson of the Investors’ Chronicle tipping Parkmead ( of which he is a years-long fan ) is that the Company’s gas output in the Netherlands is unhedged , allowing it to benefit from the recent increase in spot prices for gas . On the other hand , compared to the very generous dividends paid by DEC , the much smaller Parkmead pays no dividends and , provided that wholesale prices for gas remain elevated , which seems highly likely , as DEC’s existing contracts expire , its new contracts will be at higher prices .

[owenski] 20/7/2022 10:46

Fordtin - cheers, my bad

[farrugia] 20/7/2022 09:42

mrnumpty whatever happens the revenue for DEC will be secured - remember these guys are continually hedging at higher prices and they 'lock' long timeframes.

[mrnumpty] 20/7/2022 09:21

Two positive thoughts about the market in which DEC operates , both relating to natural gas in Europe , but the US gas market is evidently linked to the European gas market : 1/. Hargreaves Lansdown , the broker , on its front page offers three environmental investment trusts as " buys " ( Greencoat UK wind ; SPCL Energy Efficiency Income ; Gresham House Energy Storage fund ) . In the initial blurb , HL state " Futures markets are pricing European gas at twice or three times their 2021 levels for at least the next three years " ; 2/. In the latest edition of Investors' Chronicle , Simon Thompson , the magazine's small-cap tipster , offers Parkmead as a " buy " ( at 49.5p - obviously the brokers have bumped up the price as a result of the tip ) . Although Parkmead owns a couple of wind farms in Scotland , its main activity is its gas wells in the Netherlands , and Simon Thompson's rationale is based on Parkmead being both cheap and the rise in gas prices in Europe . My sole concern with DEC at the moment , as a shareholder but not as a human being who naturally wants the Ukraine-Russia war to end , is that Germany , whose economy has become so utterly reliant on Russian gas that there is talk of Berlin ordering the shutting down of those parts of the country's industrial sector which can be temporarily closed ( such as vehicle manufacturing ) , is that Berlin might force a humiliating cessation of hostilities on Kyev . As someone who knows and loves Germany as a country , observation of its political class over many years strongly suggests to me that , if Berlin has the choice between throwing essential parts of its economy under the metaphorical bus or betraying Ukraine , then a sordid behind-the-scenes " peace " will be enforced on Ukraine ( rather like what was inflicted on Germany in November 1918 ! ) . However , even if such a " peace " should be inflicted on Kyev , the question remains whether or not the countries of Western and Central Europe would then recommence purchases of Russian gas , pushing spot prices down .

[fordtin] 20/7/2022 07:48

owenski -

those TR-1's can be a bit confusing. If you look at the column "Total of both in %"
in para 7;
it shows they've actually reduced from 5.21% to 5.18%.

I don't know, but suspect BlackRock's endless stream of TR-1's may be as a result of day to day rebalancing of their tracker funds.

DEC should be in several of their trackers such as ftse250, ftse350 etc.

[owenski] 20/7/2022 07:22

Blackrock buying a few more here.

[aleman] 18/7/2022 20:15

Short futures are rising again but mid to longs not doing much:

Aug 2023


free stock charts from uk.advfn.com


Aug 2026


free stock charts from uk.advfn.com

[gary1966] 17/7/2022 15:26

Apologies you did say it was a research note about NYCF, not NYCF themselves. Still very sloppy though.

[fordtin] 17/7/2022 14:10

Gary – I’m quite sure the fund manager understands. You should direct your criticism at Marten & Co.


”QuotedData is a trading name of Marten & Co”.

You could email them to put them straight.
At the bottom of the research note there are several email addresses;

Edward Marten ([e-mail])
David McFadyen ([e-mail])
Colin Edge ([e-mail])
Nick Potts ([e-mail])

INVESTMENT COMPANY RESEARCH:
Matthew Read ([e-mail])
James Carthew ([e-mail])
Jayna Rana ([e-mail])
Richard Williams ([e-mail])

[gary1966] 17/7/2022 11:40

When all they refer to is oil then I will treat their opinion with the contempt that it deserves. If it is a top 10 holding for them then surely they know DEC is a gas not oil play.

[fordtin] 17/7/2022 11:18

It's a couple of months old, but I haven't seen this posted on the thread before.
It's from a research note about NYCF, a fund which invests mainly in high-
yielding fixed interest securities but also had about £8.4million of DEC shares in it's top ten holdings.


Diversified Energy Company
– highly cash generative with a low cost of production

We last discussed Diversified Energy (www.div.energy – formerly known as Diversified Gas & Oil) in detail in our June 2020 note (see pages 6 and 7 of that
note). To summarise, the company operates natural gas & oil wells that are primarily located in the Appalachian Basin in the United States, where it describes itself as being one of the largest independent conventional producers. It has grown its output in recent years, both through acquisition and by enhancing the efficiency of its existing operations. Its assets typically have predictable production rates, long-lives (40 to 50+ years), and relatively low rates of decline in output. Ian describes it as a very sensible holding that pays around a 10-11% dividend yield.

The company has a low cost of production, which means that it was well positioned
to weather the previously low oil price environment (its geographical focus affords it economies of scale), but it also well positioned to benefit from the current higher oil price environment. The company has previously said that, where the commodity pricing environment is favourable, it can activate a low-risk development program
that ensures a quick return on its investment. Ian observes that Diversified Energy
is very cash-generative and its significant land bank offers it the opportunity to grow organically through infill drilling. As a recognised player, it benefits from good deal flow and its efforts are concentrated in resource rich locations that are well known to the company, meaning that its operations tend to be reasonably low-risk.

In terms of the competitive environment in which it operates, its output is highly
commoditised, but is essential so tends to be reasonably price inelastic, at least in the short-term. In terms of its inputs, it has been able to act as a consolidator and has been acquiring assets from industry players who have been refocussing their businesses on shale production and, with its considerable scale in the region, has a competitive advantage when bidding for plots. It also benefits from economies of scale when purchasing capital equipment due to its size.
Ultimately, oil faces substitution as the world decarbonises but Diversified Energy’s low cost of production means that its assets will remain economic at much lower prices and so can remain producing for longer."

[farrugia] 14/7/2022 15:12

bought a few

its mind boggling really - this stock even with all this gloom around us should be 125-130p min