Diversified Energy Share Discussion Threads

[bothdavis] 06/12/2022 10:07

Well its the old...... Trust the board of directors to do their job..so buy, hold reinvest dividends for compounded growth, or....you don't trust the board of diectors, so....sell!

[rik shaw] 06/12/2022 09:15

The pessimist says they had locked in at too low prices. The optimist says great they are doing something about it by taking out new hedges at higher rates.(yes it must cost a fair bit to close out old hedges and open new ones but it must we worth it rather than sitting on their hands)

[aleman] 05/12/2022 14:34

EU and US reserve updates:

[bluemango] 05/12/2022 10:32

I'm going to stick my neck out and say according to the chart (and current movements in energy prices) I would expect DEC to not go lower than this. Have added recently in that belief and to lock in more of this excellent yield.

[lab305] 02/12/2022 18:04

Obviously they have hedged too much at rubbish prices and are now seeking to mitigate at least some of the positions. Good.

[greygeorge] 01/12/2022 20:07

Question for those 'experts' on this forum bemoaning DEC hedging policy for the past year or so...What's your thoughts on this ?

'...Diversified continued to optimise its hedge portfolio, with the current average NYMEX floor prices at a premium of 8% and 4% for 2023 and 2024, respectively, compared to the Company's previously disclosed position as of 29 July 2022. During the quarter and integral to its successful hedged-protected financings, Diversified invested ~$110 million in associated hedge modifications as it settled hedges with certain counterparties to establish new positions with counterparties associated with its securitizations...'

[fred177] 30/11/2022 22:58

what ive read according to equinor in Norway blue hydrogen will be a transitional energy for 20 years before green hydrogen becomes affordable both have ESG merits

[greygeorge] 30/11/2022 20:01

Good to see lab305 posting again, with his festive mulled whine.

[laurence llewelyn binliner] 30/11/2022 11:17

DEC - 2021 sustainability report - developments in technology provide potential risks to our business but also significant opportunities. While technology advances could pressure the business to increase spending on implementing new emission reduction equipment into legacy assets, there are a number of areas where the continued development of technology will provide future opportunities. Although blue hydrogen and CCUS are both at relatively nascent stages of development globally, we continue to maintain a dialogue with potential players in these areas to ensure that as developments occur, we are in a position to exploit our important position as a natural gas resource holder and the owner of gas storage assets. These technologies provide us with longer term options towards our net zero goal.

[swallowsflysouth] 30/11/2022 10:51

Both blue and green hydrogen have potential. Green energy reputed to being cleaner but considerably dearer than blue. Potential technical advances in this area will no doubt dictate which direction DEC take.

[acceptablereply] 30/11/2022 00:59

I think there's plenty of opportunity in hydrogen, but most of the hype seems to be surrounding green hydrogen instead of blue hydrogen. Would be interesting to see DEC venture into more ESG friendly territory.

[loafingchard] 30/11/2022 00:01

Developments like this could change the way DEC is viewed by environmentalists and the more ESG focused investors / financiers.

[swallowsflysouth] 29/11/2022 22:59

Taken from Dec website, see page 10 where Dec says - While at a nascent stage, we are actively monitoring the development of the market for hydrogen. As a significant resource holder of natural gas, we are keenly aware of the potential opportunity associated with the development of blue hydrogen

hxxps://d1io3yog0oux5.cloudfront.net/_6b081bc6b3a5149c287ece6aa107c137/dgoc/db/556/4559/file/DEC_CLIMATE_RISK_AND_RESILIENCE_REPORT.pdf

[swallowsflysouth] 29/11/2022 22:13

There has been a global acceleration in hydrogen projects, driven partly by the need for energy security precipitated by Russia's invasion of Ukraine.

DEC is certainly well placed to take advantage of the situation.

[laurence llewelyn binliner] 29/11/2022 16:00

Great find, and in Houston too, what chances we are already 1 step ahead here..? The subsequent field trial was completed in the Permian basin with a partnering company, where the team successfully measured hydrogen concentrations three orders of magnitude above baseline..

[bluemango] 29/11/2022 15:54

Thanks Woodhawk and Manta63. Yes, great article with interesting implications for DEC.

Also to shawzie for first noticing this back in October!

[shawzie] 29/11/2022 15:52

Manta63 - May I refer you to my October post 3545.

[woodhawk] 29/11/2022 15:47

Manta's link works fine:

[bluemango] 29/11/2022 15:42

Couldn't get manta's link to work but found it on Google search - try this link:



Edit: nope, just reverts to Recharge News homepage. So may be best to try Google search.

[woodhawk] 29/11/2022 15:36

Great find, manta63. We could be sitting on a real Gold mine here!!

[asp5] 29/11/2022 06:50

DEC is currently one of the largest well owners in the US. At the moment there is no value associated with these wells once gas is no longer produced from them. In fact DEC records a plugging liability.

If this were to change and value could be associated with these wells then clearly this will materially impact the share price positively. This is on top of the ~50% discount to NAV.

In addition to the link from Manta, net power are building a commerical 300MW net zero nat gas power station in Texas based on the allam cycle. Co2 production is signifcantly reduced and any that is created is sequestrated underground (another good use of DECs non productive wells). The cost is comparable / could be less than current gas fired power stations.

I think DEC have hinted that they will be looking to explore these avenues in the future in their various reports. While it is early days, there is so much innovation going on that it is very difficult to confidently predict the future.

[manta63] 29/11/2022 00:01

hxxps://www.rechargenews.com/energy-transition/our-microbes-can-produce-clean-gold-hydrogen-from-depleted-oil-gas-wells-for-1-kg-or-less/2-1-1322589
Could this be good for Diversified Energy