Diversified Energy Share Discussion Threads

[aleman] 25/10/2022 11:37

There are a few more posts from him. He sounds a bit pessimistic to me on Europe. I think demand destruction (efficiencies) and subsitutions of other energy types mean not all Russian supply will need replacing. EU futures seem fairly relaxed about the situation. He mentions NE USA might have shortages coming so that's one to research.

[mrnumpty] 25/10/2022 08:19

Aleman . Your statement is confirmed in an article in today’s Telegraph ( page 19 ) titled “ Gas prices fall to lowest since June in warm autumn “ . The article only refers to Britain / Europe , so nothing relating to DEC’s market in the USA , and it states “ Most major gas users on the Continent now have storage levels at more than 90% capacity “ .

[bluemango] 24/10/2022 21:02

So it's 'only' 10% yield after 15% WHT at today's closing price and exchange rate, what a shame! 🙂

[popit] 24/10/2022 19:57

mrnumpty / bluemango

Thanks for the answers. I just have an ordinary dealing account and so unfortunately it looks like 15% or 30% Withholding Tax if I buy them.

[aleman] 24/10/2022 16:46

EU gas for 1-hour delivery turns NEGATIVE. I take it reserves are basically full now so they can squeeze no more in and warm weather means demand is low.

[mrnumpty] 24/10/2022 10:52

Pipit . With regard to withholding tax , if you fill in the W8 BEN Form , there is no tax if the DEC shares are held in a SIPP but , even with the W8 BEN Form , there is 15% withholding tax if the same DEC shares are held in an ISA . Without filling in W8 BEN , it’s 30% withholding tax . I was able to do this easily with Hargreaves Lansdown in spite of being a technophobe . Hope this clarifies matters .

[asp5] 24/10/2022 07:45

Latest on the sharebuybacks:

7,22% ( 6.139.608,00) of the 85M shares have been bought at a weighted average price of 128,65p over 13 trading days.

I expect Q3 & year end reporting to be a volatile period for shares. The timing of this buyback combined with dollar strength is highly positive for those looking to hold long term.

[fred177] 24/10/2022 07:39

if you hold in an investment account complete a form W8 BEN it reduces to 15%, only works with some brokers IG is ok

[bluemango] 23/10/2022 23:35

Not if it's held in a SIPP.

All explained in the header.

[popit] 23/10/2022 23:31

Does anyone know if these have US Withholding tax of 30% deducted on the dividend?

[mrnumpty] 18/10/2022 19:58

Lord gnome and meanreverter . Thanks for your comments - yes , I should stick to using a proper computer keyboard , as I am doing now , but I was being being lazy by using the keypad on my mobile . No offence taken , as your comments were civil and meant in the spirt of mutual help . I hope that , apart from mirth caused by the ridiculous predictive texting , the substance of my two posts was of use . Anyway , does anyone have any thoughts about today's 3.7p ( 2.87% ) drop ? Although the way the LSE allocates transactions as buys or sells can be very misleading , it seems to me that the three moderately large trades today after hours were all buys , as they were all above the current buy price of £ 1.25.30 ( 53,548 @ £ 1.27.662 ; 24,778 @ 1.27.396 ; 21,767 @ 1.25.40 ) . No doubt a reason for the drop is that Henry Hub has fallen to $ 5.79 , presumably because we are currently in the gap between the need for air conditioning during the recent very hot summer in the USA , whilst the USA isn't yet sufficiently cold for much need for central heating . Perhaps another explanation might be that , whereas DEC's share price has recently held firm , the FTSE 100 and , more so , the FTSE 250 , have staged a slight rally in the last couple of days , so perhaps people have taken profits from DEC in order to catch the rally . I note that , according to the FT today , " Europe [ is ] at risk of ' much worse ' energy crisis next year , warns Qatar " . It was only a couple of months ago that DEC's share price fell from about £ 1.25 to £ 1.10 , before then leaping to £ 1.40 , so maybe it will soon be time to acquire more ?

[holts] 18/10/2022 17:06

House broker doing a good job of pulling price down for buybacks then .

[lord gnome] 18/10/2022 16:37

mrnumpty - you do realise that you can edit your posts, don’t you? You might not be able to do this on an app, but you can certainly do it on proper computer on the web site. This will allow you to correct errors and typos. Sorry if this is teaching you how to suck eggs.

[mrnumpty] 18/10/2022 09:14

Meanreverter . Indeed !

[meanreverter] 18/10/2022 09:02

Recommendations to all posters on bulletin boards:

(1) Type on a proper keyboard.
(2) Don't use a predictive text app.
(3) Do use a spellchecker.
(4) Proofread your post before submitting it.

[mrnumpty] 18/10/2022 08:15

Embarrassment on reading my text here - I hope it wasn't the " IRA " which wrote the report ! The typos were due to predictive texting on a mobile . I hope my typos amused readers after what has been an awful few weeks of the Truss-Kwarteng nightmare ( correct analysis , but insane delivery ) . Anyway , the essence of the two articles in today's Telegraph remains the same .

[mrnumpty] 18/10/2022 08:01

There is also the following article on page 21 of the Telegraph , titled “ Cut gas use by 10% or risk blackouts , Europe warned “ . “ Europe must slash its gas consumption by more than a tenth to prevent the risk of power rationing and widespread blackouts this winter , the global energy watchdog has warned . The International Energy Agency said the Continent and the U.K. needed to voluntarily reduce gas demand by 13% in order to remain ‘ safe and secure ‘ if Russia cuts off supplies . This will help ensure that gas facilities are at least one third full by March 2023 , when the energy system will be at its most vulnerable . Failure to do this could lead to industrial power rationing and the possibility of widespread blackouts for businesses and homes if a late winter cold snap strikes . The Agency’s prediction is based on a worst-case scenario where Russia turns off the taps and imports of LNG do not continue at their present high levels . In its latest gas market report , the IEA said ‘ Europe’s security of gas supply is facing unprecedented risk as Russia intensifies its use of natural gas supplies as a political weapon . The possibility of a complete cut-off in Russian gas deliveries cannot be dismissed … when the European gas system is at its most vulnerable ‘ . The IRA’s report analysis indicates ‘ maintaining adequate storage levels until the end of the heating season - at 33% of their working storage capacity as a minimum - will be crucial for a secure and safe winter ‘ . The Agency also said cutting gas demand this winter is also important because it will ensure storage facilities are less depleted going into next summer when Europe faces a fresh challenge to refill them without Russian supplies ………;…… “ . Yes , I’m fully aware that severe bottlenecks in transporting LNG from the USA to other continents are the reason for the Henry Hub ( USA ) price for natural gas being much lower than the European price , but the IRA’s report shows that they see this crisis in supply as ongoing , and I suggest therefore that might encourage the gradual removable of the supply bottlenecks , allowing more US gas to be supplied to Europe , thereby eventually raising the Henry Hub price . By the way , anyone who thinks that the Russian war isn’t spreading or who thinks that Putin will be replaced by someone nice isn’t paying attention .

[mrnumpty] 18/10/2022 07:36

On page 19 of today’s Telegraph , in
the Business section , there’s an article titled “ [ U.K. ] energy firms in £ 40 billion bailout will need green credentials “ . This relates to onerous conditions set by Westminster , which demand that , in order to qualify for financial support from the U.K. taxpayer , companies selling energy to customers must meet stringent criteria . In other words , nothing to do with DEC ( I only write the aforementioned in order to explain the main article “ . However , at the end of the article , there is the following : “ BP has bought a US renewables producer for $ 4.1 billion ( £ 3.6 billion ) to bolster its net zero ambitions . BP said the purchase of Archaea Energy would help roughly double its expected earnings from renewable natural gas to around $ 2 billion by 2030 “ .

[mrnumpty] 17/10/2022 21:39

Scrawl . I second that - thanks .

[woodhawk] 17/10/2022 21:25

Many thanks for that, scrwal!

[scrwal] 17/10/2022 21:00

Latest First Berlin report 11 October - target price raised to 180p from 160p

[meanreverter] 17/10/2022 09:55

Lomand01 : You make some good points. Thanks!

[lomand01] 17/10/2022 09:34

Meanreverter. Yes and No. They have always said that drilling some limited "infill" wells was an option for them and I suspect this is now a very lucrative option. From their massive portfolio of existing wells DEC has unique incredible data making drilling very low risk/cost to significantly increase production. Remember they acquired millions of acres when gas was circa $2. Any new drilling then for the seller was totally uneconomic. Not so now!! Excellent news for me which can only add shareholder value. Watch the Emeth Value on YT for more background and context. Normal caveats.

[meanreverter] 17/10/2022 06:13

DEC's usual business is to buy old producing gas wells and run them until retirement. Now it seems that the company is seeking to drill new wells in this instance.