Diversified Energy Share Discussion Threads

[laurence llewelyn binliner] 28/11/2022 16:23

The company took advantage of the weak GBP for the buyback and got 10/15% for free, now they are ramping up the dividend to reward shareholders.., fine by me as it offsets some of the recent FX move for us.. :o)

[lab305] 28/11/2022 15:01

What on earth happened to the buyback scheme ? Lasted about two minutes for a fraction of the allotted capital. There had better be a big rabbit coming out of the hat soon.

[woodhawk] 24/11/2022 14:43

Did my divi reinvesting today - a little ahead of the December payout. Had a few more besides for extra measure.

[rik shaw] 24/11/2022 14:17

Dividend notice states 'Diversified will announce the sterling value of the dividend payable per share approximately two weeks prior to the payment date'

[1knocker] 24/11/2022 13:07

Today's fall seems heavier than going ex the dividend warrants. Those wishing to dodge the tax will have sold before today, so that pressure on the price will already be past. It does seem to be a characteristic move for DEC though. Something for prospective purchasers to make a mental note of.

Does anyone know the date on which the dollar to sterling conversion is made for dividend purposes? There has been quite a change in exchange rates since the last dividend was paid.

[owenski] 24/11/2022 09:26

I missed this from earlier this month, CEO talking about the business model -

[aleman] 24/11/2022 09:16

Germany, Netherlands and Denmark are among member states that have remained sceptical about the safety of intervening in markets, arguing that lower prices would result in increased gas use and cause traders to send gas elsewhere.

ICE, which operates Europe’s benchmark gas exchange, pushed back against any price cap saying that it would “result in significant margin increases which could destabilise the market”.

My gut feeling is still that differerently capped pricing regimes in connected markets will see supplies diverted and possible undersupply in the lower price capped markets. Communist Russia fixed bread prices at 2 Kopeks but there was never any on the shelves to buy. Same happens here to bottled water when it floods. Everybody moaned if shops increased bottled water prices but also moaned there was none on the shelves where they did not increase prices. Capping prices is asking to have supply diverted elsewhere if prices spike. The same happens for concert tickets. Goodness knows why this country has fixed prices for concerts and then people complain they can't get them. They could have online auctions at prices set by the market. Messing with market pricing leads to undersupply for those most in need.

[charliec51] 24/11/2022 08:59

From Dowgate today...

Diversified Energy (DEC.L)
Initiation of Coverage



Diversified Energy (Diversified) is focused primarily on US natural gas production. Its strategy is to acquire and operate producing energy assets, which has seen it grow rapidly and create significant shareholder value. Since its 2017 IPO, the group has grown reserves 15x, increased production over 280x, raised the dividend 11 times and grown its market value 16x to £1.1bn. Diversified is currently the 2nd largest independent energy company by production, the 4th largest by market value and the 3rd highest by dividend yield (11.3%) in the FTSE250. It is currently working on a US listing. Diversified has made strong progress on its ESG initiatives, joining the UN Environment Programme’s Oil & Gas Methane Partnership 2.0, and was recently awarded the Gold Standard Pathway. It is targeting a 30% reduction in methane emissions by 2026 and 50% by 2030 and has committed to reach net zero by 2040. Following Russia’s invasion of Ukraine, US gas prices are trading at a 14yr high but at a quarter of levels experienced in the UK and Europe. We expect Diversified will benefit from higher prices as US LNG exports continue to drive up US gas prices. We forecast revenues and Adjusted EBITDA to grow by 2021-23E CAGRs of 23% and 24%, respectively, as the group benefits from higher energy prices. We model further DPS increases of +5% to 17.3c in 2022 and +3% to 17.8c for 2023, which provides a yield of 11.3% this year rising to 11.7% next. We initiate coverage with a Buy and an NAV-derived target price of 210p, which provides upside of 65%.

[simplemilltownboy] 24/11/2022 08:35

Thanks Langland, explains the sudden drop. Nice broker note out this morning having a TP of 210. Unfortunately I can't post it, but it does say that the US listing will probably be accompanied with a major acquisition, I suppose this is part of the reason they are holding back on the buy backs, BWDIK. Good luck all

[langland] 24/11/2022 08:03

Ex div today. Pay day 28 December.

[rbewes] 23/11/2022 19:25

Slow and deliberate, sounds like me.

[smart1e] 18/11/2022 16:44

this news may turn out to be significant for the company.

FREEPORT LNG PROVIDES UPDATE ON INITIAL RESTART OF ITS LIQUEFACTION FACILITY

Houston, TX, November 18, 2022 - Freeport LNG Development, L.P. (Freeport LNG) today provided an update on the ongoing reconstruction and resumption of operations at its natural gas liquefaction and LNG export facility. As of November 14th, the reconstruction work necessary to commence initial operations, including utilization of all three liquefaction trains, two LNG storage tanks and one dock, was approximately 90% complete, with all reconstruction work anticipated to be completed by the end of November. Proposed remedial work activities for a safe restart of initial operations have been submitted to the relevant regulatory agencies for review and approval. Subject to Freeport LNG meeting its regulatory requirements, it is targeting initial production at the facility in mid-December.

Each of Freeport LNG's three liquefaction trains will be restarted and ramped up safely, in a slow and deliberate manner, with each train starting separately before restarting a subsequent train. It is expected that approximately 2 BCF per day of production will be achieved in January 2023. Full production utilizing both docks remains anticipated to commence in March 2023.

"Our teams have worked diligently over the last several months alongside regulators to ensure the safe restart of our facility. I am immensely grateful for their efforts," said Michael Smith, Founder, Chairman and CEO. "We are committed to moving forward with an uncompromising safety focus and enhanced operational processes that will enable us to chart a safe, sustainable path forward to serve our customers and the broader LNG market as a whole."

ABOUT FREEPORT LNG

Freeport LNG is an LNG export company headquartered in Houston, Texas. The company's three train, 15 MTPA liquefaction facility is the seventh largest in the world and second largest in the U.S. Freeport LNG's liquefaction facility is the largest all-electric drive motor plant of its kind in the world, making it the most environmentally sustainable site of its kind. The facility's electric drive motors reduce carbon emissions by over 90% relative to gas turbine-driven liquefaction facilities. Freeport plans to expand by adding a fourth liquefaction train, which has received all regulatory approvals for construction. Freeport was formed in 2002 to develop, own and operate an LNG terminal on Quintana Island, near Freeport, Texas. The terminal started LNG import operations in June 2008 and began LNG export operations in 2019. Further information can be found on Freeport's website at www.freeportlng.com.

[johnhemming] 18/11/2022 10:00

In terms of the buybacks stopping there are two issues:
GBP price of stock
GBPUSD exchange rate.

Given that GBPUSD is now 1.192 I would not be surprised if there are fewer buybacks, but it all depends in the end on the actual price in Dollars.

[lab305] 17/11/2022 18:28

11/11/2022
84222D60528 Sold 10000 DIVD ENER (Del) 1.30 Settlement date 15/11/22
13,059.50

11/11/2022
84222D60492 Sold 15000 DIVD ENER (Del) 1.31 Settlement date 15/11/22
19,639.50

11/11/2022
84222D60470 Sold 10000 DIVD ENER (Del) 1.30 Settlement date 15/11/22
13,077.00

11/11/2022
84222D60406 Sold 10000 DIVD ENER (Del) 1.30 Settlement date 15/11/22
13,023.51

11/11/2022
84222D60209 Sold 10000 DIVD ENER (Del) 1.30 Settlement date 15/11/22
13,039.50

11/11/2022
84222D60203 Sold 20000 DIVD ENER (Del) 1.30 Settlement date 15/11/22
26,009.50

11/11/2022
84222D60192 Sold 10000 DIVD ENER (Del) 1.30 Settlement date 15/11/22
13,013.20
If you could be bothered to check and take your blinkers off you might learn something !

[woodhawk] 17/11/2022 17:45

LOL of COURSE you did!!

Sorry, I have no time for fantasy traders! Filtered.

[woodhawk] 17/11/2022 17:12

Fan club? You really do have a rather childish attitude to this share, don't you.

No idea what has 'happened' to the share price this last few days, but will probably have my buying boots on tomorrow as looks like a bargain price to me.

[lab305] 17/11/2022 16:48

Well the fan club has gone quiet. What's happening to the share price and the buyback scheme ?

[bluemango] 15/11/2022 12:13

To condense this argument, it seems that people are just puzzled that you choose to complain about, and each year relinquish a few shares, to give up a very generous yield, to invest elsewhere at presumably higher risk. The hedging makes this generous yield relatively safe. It may not be what you first signed up for, the policy may have changed in emphasis since you first invested, but you can't blame people for wanting to stick with an excellent yield at a level of safety & reliability that is hard to match.

All you're really arguing about is tolerance to risk, and we're all different there.

[woodhawk] 15/11/2022 12:12

lab305,

"Nowhere did I see that they intended to employ such high levels stretching years into the future."

But now you know, so the solution is in your own hands... or continue banging your head against the wall like an idiot. Just give the rest of us a break!

[lab305] 15/11/2022 11:40

riskvsreward. Yes I bought a car but then the garage fitted a speed restrictor to it after its first service . I never expected it to fly but on the open highways of the last year it could be racing . The dividends are high and regular which is excellent and the company well run. The only criticism I have is not of hedging but the level of it. Nowhere did I see that they intended to employ such high levels stretching years into the future.
I sell enough each year to use my CGT allowance and so I will be invested heavily for many years to come. Sorry .It seems ironic that after putting such a high personal stake into this company I am the villain for expressing a point of view.

[woodhawk] 15/11/2022 10:14

Since 2015 the share price has more than doubled and the yield - at current prices - is circa 10% and all Lab305 can do is whinge!

[riskvsreward] 15/11/2022 10:08

Exactly, it is like you bought a car but kept complaining it wouldn’t fly like a plane, which is not what the car manufacturer promised in the first place.

[redtom1] 15/11/2022 10:04

Lab305,

This is the same old argument.
The company you invested in is obviously not the same company of the last 4/5 years.
Their business model is very clear and it is because of this business model (ie high hedging strategy creating steady earnings which pays out consistently high dividends) that most of us invest here. Total return is excellent, even more so in such volatile times.

Stable and consistent - how often can you say that about a share.

You want this to be a different type of O&G company but it won't change its strategy.
Seriously if you really don't like the way they run this dividend cash cow, then look elsewhere.