Diversified Energy Share Discussion Threads

[asp5] 19/8/2022 07:23

US gas prices bottomed in late June at ~$5.40 per mmcf and have rallied back to ~$9.10. Even with the recent rally, US gas prices remain multiples below international prices.

With US gas inventoty levels below average, Freeport LNG facility due to resume exporting in October and US gas supply growth limited as shale producers focus on returns for their investors, I do not see gas prices coming down any time soon.

In fact there is a good chance US gas prices could go significantly higher and normalize to international prices over coming months which would be another significant boost to DEC (on top of the US listing).

DEC is well positioned for sustained share price growth not only short term but also the longer term.

[woodhawk] 19/8/2022 01:47

What good is cash when it's being eroded at 10%+ a year?

[dovey21] 19/8/2022 01:33

Because it was near its highs and the global economy looks set for turbulence and/or crash. I'm all cash at present and intend to be so for sometime.

[owenski] 18/8/2022 21:52

The question is why did you sell?

In three years you haven't made much capital gain but you've had a super income yield.

If the object was to hold an income stock of this quality of payout and nothing in that investment case story has altered then why sell.

[1knocker] 18/8/2022 21:25

Don't fret Dove, and don't chase. In this market, if you miss one bus (or hop off at the wrong stop) you can be sure that another will be along fairly soon. Wait for the market to come to you.

[woodhawk] 18/8/2022 21:22

We've all done it! Works both ways - sometimes you luckily sell up just before a big retrace. Swings and roundabouts.

[renewed1] 18/8/2022 21:09

Oh dear....Dovey!!!!

[dovey21] 18/8/2022 20:33

Kicking myself for selling last week. Held for 3 years.

[asp5] 18/8/2022 18:45

Over 9M shares traded today - typical daily range is 1M to 2M. In the last 3 or 4 weeks we have seen daily volumes of 12M, 7M, 6.5M etc. way higher than normal.

Given DEC are preparing the ground for a listing then they will have been pitching to funds/investors ahead of any listing. In an earlier post I mentioned that supply/demand dynamics would help support the share price. I believe this is what is playing out.

I also think the timing of the rise is related to the ex-div date of Sept 1st. If a fund/investor is going to take a position then doing so just before a divi is paid maximises returns.

The good thing is returns would still be 6+% even if share price reached NAV of $2.82 - which would put DEC into the top bracket of divi paying shares in the US.

[1knocker] 18/8/2022 15:59

There are plenty of people drooling over companies like i3 on account of its dividend though it is only a fraction of the DEC dividend, and nothing like so secure.

I have said many times on this board that DEC's double digit div might actually deter purchasers. Certainly when I started buying several years ago I was sceptical, and wondered if it was in the 'too good to be true' category, and a value trap.

The accounts are pretty impenetrable as the accounting conventions lead to some rather bizarre figures. It have had a stack of dividends, and my confidence has risen to the point that this is now my largest single holding.

It may be, paradoxically, that if the share price rises to the point where the dividend looks more 'normal', that will fuel further buying interest and a further share price rise. Even if that proves to be wishful thinking, I am more than happy with a price 42% over my average purchase price, and a stonking dividend rolling in 4 times a year.

Fingers crossed of course, but I think we can congratulate ourselves for investing in DEC, and riding out the scare stories which seem to come around once or twice a year, or using them to top up cheaply.

[cassini] 18/8/2022 15:57

The energy sector is on the move today.

BP up 2.6% as well, only a little less than DEC.

[aleman] 18/8/2022 15:50

Sept 2022


free stock charts from uk.advfn.com


Sept 2024


free stock charts from uk.advfn.com


Sept 2026


free stock charts from uk.advfn.com


Sept 2028


free stock charts from uk.advfn.com

[smidge21] 18/8/2022 14:59

Quite; you don't get forward secure yields of 10.5%; yield is either (much) less secure that I think or (way) too high

[my retirement fund] 18/8/2022 14:05

It does feel a bit like a re-rating is underway

[johnhemming] 18/8/2022 13:57

People who sold because of a non-cash loss are likely to buy on a non cash profit. Its good value anyway.

[cassini] 18/8/2022 13:25

We're well above the trend channel from the start of the year.

I wonder if this is a rerating?

[viscount1] 18/8/2022 13:20

I bought a small holding in DEC as a long term fossil fuel underinvestment play a few months ago.

Nice price run-up recently but I am not sure why.

[shanklin] 17/8/2022 12:34

Thank you Mattybuoy re post 3369

[my retirement fund] 17/8/2022 00:11

A good set of directors buying, they know a bargain when they see it

[1knocker] 16/8/2022 23:43

Happy days. My average is just under 100p. I wish all my holdings were showing a 36% profit and paying a dividend of 11% on that current price.

[podgyted] 16/8/2022 19:45

Another high volume day.

Suffered a bit in the UT at the end of the day.

Nat gas up over 6% in the US tonight (Sept contract) - looking forward all contracts are over $5.5 into 2024 and up at least 3%.

Looking good for tomorrow.

[mattybuoy] 16/8/2022 19:37

In simple terms you can divide Henry Hub by 10 to get the dollar price per Therm. Various places also quote the Dutch TTF gas price in $/MCF e.g. $65 yesterday.

Even at $9 Henry Hub the arb is still huge.

[clive7878] 15/8/2022 20:58

With a potential 11% yield the share price could well be on a further run.