Diversified Energy Share Discussion Threads

[1knocker] 22/12/2022 14:59

The March dividend has been increased to 4.375c (up 0.125c).

[bluemango] 22/12/2022 11:15

I3E had a terrific RNS this morning, massive increase to dividend. Similar business to DEC, have therefore bought more DEC this morning as it's still a higher yield than I3E at this price and news in general bodes well for further upside here.

Sometimes you hope for a bit of 'similarity positive contagion'

[greygeorge] 17/12/2022 15:41

CASSINI - Thanks for that. I was reading about the DEC agreement with various States regarding its' well retirement program. 75% of the wells are covered under these 'retirement' agreements, and the agreements cover a period of 10-15 years. After reading your reply, I went back and re-read the article. It seems that under the 'retirement' agreement, the DEC 'Smarter Well Management' program will, in that time-frame either bring currently non-producing wells back into production, or cap and retire them.

I'm happy to let DEC do their thing, it's what management, admin and directors are paid for, after all.

[meanreverter] 17/12/2022 08:42

1knocker: In general, I agree with you that dividends are preferable to buybacks. However, in the particular case of DEC, there are further considerations. For UK shareholders, DEC's dividends are subject to a 15% US dividend withholding tax (unless the shares are held in a SIPP), while buybacks do not incur this tax. Moreover, at present, the shares trade at appreciably below NAV; so the company is getting good value on these purchases.

That said, I am still happy with the present level of dividends and would not wish to see them reduced. At the same time, I am pleased that the company has the freedom to spend surplus cash wherever the best value may be found. That could be in assets sold off by distressed or pressured companies or, indeed, in its own shares if opportune.

[cassini] 17/12/2022 01:20

I think these wells decline exponentially, that is, what you can get out of them is proportional to what's left in them,

Therefore I'd expect that 8-9% annual decline to be related to the remaining capacity of the well rebased annually to the new, smaller capacity left.

Otherwise at 8-9% you could suck a well dry in 11-12 years - it would have a linear decline characteristic, not exponential.

However - caveat - I'm only guessing.

I await someone with deeper knowledge who's read the company presentations better ;0)

[greygeorge] 16/12/2022 23:45

Just for the fun of it,does anyone know if, when DEC says it aims to extract 8-9% (I think) of known reserves per year, is that 8-9% of the original known reserves, or 8-9% of remaining reserves at the start of each new reporting year ? For example, if DEC reserves begin FY 2023 at a base of 100, and they extract 9%, then FY 2024 will have base of 91 - So, assuming no new acquisitions, will the production target of 9% be 9% of the original base of 100, or 9% of the remaining new year base of 91 ? It makes a difference in how long the known reserves will last, and whether production, and therefore revenues and profit will decline on a sliding scale. Maybe this is what the market sees that us simple souls are overlooking. Just a thought.

[1knocker] 16/12/2022 18:17

I am overweight here, and DEC is by some distance my largest holding. I should not buy more, but if the price drops much further the temptation will become irresistable..

It does not break my heart if share buy backs do not proceed. I would much prefer that companies forget about trading in their own shares (they seldom get the price and timing right anyway) and just pay special dividends if they find themselves in the happy position of carrying excess cash.

[greygeorge] 16/12/2022 14:02

lab305 - How did your Carillion investment work out for you ?

[lab305] 16/12/2022 11:01

180p , 174p , 206p take your pick. I would be ecstatic if they got back to 135p. Share buyback scheme , what happened to that ? Oh yes , Dollar went down so we cancelled it . Lame excuse as the share price drop has matched it . 117.8 absolute rubbish. Come on all you pundits and tell me how good they/we are doing !

[mondex] 15/12/2022 18:09

From Interactive Investor (& edited)

Peel Hunt’s quarterly review of UK-listed exploration and production stocks expects continued high levels of M&A activity and for shareholder distributions to remain strong.

Brent crude has fallen 25% since November as demand fears grow, but the broker believes prices will be supported by the relaxation of China lockdowns and OPEC production cuts.

Peel Hunt points out its investment cases are compelling at conservative prices, with the broker having a longer-term projection of $65 a barrel. However, it adds that the risks are skewed to the upside as global demand is expected to grow until at least 2030 and supply will be impacted by years of under-investment and the likely loss of Russian output.


Increased volatility makes forecasting harder in UK gas, but a prudent view by Peel Hunt still sees long-term assumptions going from 55p a therm to 70p a therm. UK gas has averaged 200p a therm in the year-to-date, but with the current day-ahead level above 300p........

Diversified Energy Company, which has natural gas and oil wells in multiple regions of the US, recently announced an increased dividend to reflect a strong asset performance, higher commodity prices and consistent cash margins. This is on top of an ongoing share buyback programme.

Peel Hunt has a target price of 180p and pointed out that recent updates have been strong. It added: “With low-cost and low-decline production, limited capex, and a strong hedge portfolio, Diversified’s 11% dividend yield is underpinned by one of the sector’s lowest-risk free cash flow profiles.”

[rik shaw] 14/12/2022 08:03

The Company announces that Shareholders who have elected to receive their dividends in GBP sterling will receive an equivalent payment of 3.45 pence per share, based on the 12 December 2022 exchange rate of GBP 0.81150=US $1.00.

[bothdavis] 13/12/2022 22:55

Freedom of speech!

Its just a comment on how the shares are not reacting as per the rest of the market!?

Don't fret..................

[mr smc] 13/12/2022 17:42

Probably tomorrow or Thursday

[woodhawk] 13/12/2022 14:22

US inflation figures surprise! May have now peaked. Most of my shares surging. About time DEC joined in the fun?

[1knocker] 13/12/2022 13:14

Does anyone know when DEC will announce the sterling rate for the divvy?

[fred177] 10/12/2022 22:30

Aah yes I think I have she makes
A great cup of tea mrs Doyle ah go on you will ah you will ah go on you will you will etc

[greygeorge] 10/12/2022 15:01

'...The London-listed firm with oil and gas production in the United States said it believes the current volatility and general weakness of the stock market combined with the strength of the US dollar versus the pound creates an opportunity to create value for shareholders.

"The board believes that the programme, if and when implemented, will represent an appropriate use of the company's cash resources relative to its net asset value,” it said in a statement.

DEC noted that its buyback programme will seek to reduce its share capital by up to 10%...'

[greygeorge] 10/12/2022 14:56

lab305. I've been catching up on some of your recent posts. Honestly, nothing you say makes any sense ! you talk about DEC flip-flopping' on the share buyback. They clearly stated when announcing the share buyback that the figures they quoted were a MAXIMUM amount, be it based on a MAXIMUM number of shares or a MAXIMUM amount of money spent. further, they would only issue instructions for shares to be repurchased when the board deemed it to be of benefit to the company. You seem to think they made some sort of irrevocable commitment that the board has reneged on. Obviously, you mis-read their intentions, pretty much as you mis-read everything this company says.

[greygeorge] 10/12/2022 14:21

Yeah, see, lab305, I don't think the management is interested in raising it's share price every couple of months so that you can sell, then ensuring the share price drops again within a couple of weeks to enable you to buy back in. Real life doesn't work that. You are not the centre of their - or anyone else's universe, even if you are a multi-millionaire. LOL - again.

[greygeorge] 10/12/2022 14:07

lab305 - LOL.

[greygeorge] 10/12/2022 14:06

Oh, no, say it isn't so, lomand01. You mean johnhemming is another lab305 - Clueless as to the company and industry they're bought into, and how things in general work ???

[petewy] 10/12/2022 13:52

for ASp5. Great recording...the Lenny Bruce of finance. (Peter Lynch)