Diversified Energy Share Discussion Threads

[podgyted] 08/2/2023 17:53

Will we get to see the price before they close the retail offer?

[laurence llewelyn binliner] 08/2/2023 17:49

Did someone mention how the low NG1 (2.41) price can lead to acquisitions.. ;o)

The Acquisition includes a hedge book over 60% of 2023 production at an average floor price of USD3.80, above the level of the wider DEC portfolio of USD3.65

Price tbc but I have seen a recent book build open/close same day and market updated the following morning..

[bluemango] 08/2/2023 17:46

No mention of price (minimum or otherwise); they specifically say it will be determined at the end of the (rapid!) bookbuilding process.

[spangle93] 08/2/2023 17:36

I'm still trying to work out the likely price...

I know it's "determined by the Company following completion of the Bookbuild" but can anyone see a minimum mentioned anywhere?

[bluemango] 08/2/2023 17:31

Sounds a good, opportunistic move and, given this limited offer to retail investors will surely be at some discount, have applied for what I can afford.

It's also an easy, no-fees way of tapping into some more 13% yield. Pretty much a no-brainer?

[t-trader] 08/2/2023 17:30

Acquisition and fundraising RNS just issued

[1knocker] 08/2/2023 12:41

Apollo, I don't want to tempt fate, but it would not surprise me if you managed to find the bottom, though honesty compels me to add that I thought DEC would not go under 115 - hence my couple of opportunistic buys at 112 and 109.4. It will be interesting to see how the price moves on 2 March when DEC goes ex div.

[apollocreed1] 08/2/2023 01:48

I had an order from a week ago to buy at 109.2p, which went through this afternoon. I think it's a good price and good time to be buying into a 13.5% yield

[1knocker] 07/2/2023 20:16

That sounds like a very smart switch to me. There is also scope fr a profitable switch back in due course. This a volatile market. we have to embrace the volatility.

[bluemango] 07/2/2023 19:22

#3988 "if even the initial premise is right (i.e. BP overbought, DEC oversold)"

Fwiw, DEC's 14 day RSI is at 30 and heading downwards, so arguably yes it's going into oversold territory.

Edit: Quite apart from how it looks visually on the chart ... absolutely hammered and due a rise again. Not bothered personally as I'm here for the income and confident it will eventually be recognised as undervalued.

[laurence llewelyn binliner] 07/2/2023 19:09

#Cassini, interesting you should share your thoughts, I too was wrestling with the same decision all afternoon, failed to make a call, sat on my hands and pushed my luck.. :o)

The DEC share price seem to be trending with the recent fall in NG1 price, and now the recent dollar rally has given it another drumming, both drivers have now levelled off so I added a few here this morning and let BP run..

Tomorrow is another day, we will see what we get given to chose from..!

[cassini] 07/2/2023 18:38

LLB,

Of course, timing a trade like this exactly right is impossible, that's if even the initial premise is right (i.e. BP overbought, DEC oversold)

I had in mind that short-term profit takers might bring BP back down fairly quickly, but your scenario is just as plausible.

BP's divi is still not that great though compared to DEC, even with the 10% uplift BP announced today and I'm trying to up the dividend component of my SIPP.

[laurence llewelyn binliner] 07/2/2023 18:04

#Cassini, interesting trade, I too am considering some of the same, however BP go XD on the 16th and they could rally some more into that yet and weaken here, it would be nice to catch that dividend before adding here to catch the next DEC one as well..

Not a bad problem to have mind.. ;o)

[oneillshaun] 07/2/2023 15:24

I did exactly that sold bp 508.

[cassini] 07/2/2023 14:48

Selling BP to buy some more DEC.

Not that BP isn't doing well but... a 7% rise on the day...

[oneillshaun] 07/2/2023 14:45

i have a pending order at 107 for 93,427 shares fingers crossed it gets filled.

[1knocker] 07/2/2023 14:37

This is getting silly. At the current price the dividend is pushing 12%. When I bought last month at 112 I thought that really would be the bottom. If the market is right we are not going to need domestic gas subsidies next winter. In fact we shall probably be being paid to take the stuff off the suppliers' hands!!

[greygeorge] 07/2/2023 14:26

I actually like this company, as you'd all know if you'd been following my criticism of lab305 and his constant whining this past year and a half. But hey, ask a couple of questions, and everyone thinks I'm betting against this company. I just hope the excellent management is on our side and not in it for themselves at the expense of small investors. (Obviously, lab305 isn't a 'small' investor, having plowed close to £700,000, is it, by now ?)

[greygeorge] 07/2/2023 14:22

Thanks Spangle93, I could only find thew numbers for some of their acquisitions this past couple of years.

[cwa1] 07/2/2023 13:37

I've been out of DEC for a long time but decided to take some at just shy of 109p. Fingers crossed it is just a short term malaise...

[1knocker] 07/2/2023 11:27

Fordtin, that is interesting, and encouraging. Any fund which has 3% or more of its capital allocated to DEC is not expecting it to go bust!

I broke my rules this morning and bought a few more at 109.43, having also topped up last month at 112. At under 110 it was impossible to keep my fingers away from the buy button. My average is still under 102, but I shall sell today's purchase when (fingers crossed) the price rises a bit, for reasons of portfolio discipline. I should also like to get my average down under 101 again. If we get a decent rise and I sell both this year's top ups I should be back under 100 which would be both satisfying and restore full discipline in relation to the holding size. In the meantime I look forward to my biggest ever DEC dividend payment next month.

DEC had better not go much lower though, as that really must be 'my last territorial acquisition in [Europe]', as some fellow said before plunging the world into war 80 odd years ago.

[spangle93] 07/2/2023 10:54

Nice one, fordtin ;-)

[fordtin] 07/2/2023 10:36

1knocker - your comment in post #3974 left me wondering how many income funds actually hold DEC shares.

These are the ones I found to add to post #3975 before I got bored;



abrdn OEIC LF abrdn Income Focus Class C Acc have 4.33% of their ~£143m portfolio in DEC.




Blackrock uk smaller companies fund - 3,850,000 Diversified Energy - value £4.212m - 0.62% of fund




JOHCM UK - UK Equity Income - Diversified Energy 2.89% of £1.7b portfolio



Columbia Overseas Value Fund
DIVERSIFIED ENERGY CO PLC - 24,401,629.00 shares - 1.35% of $2,551M fund





ES R&M UK Equity Income Fund Diversified Energy 1.33% of £41.5m portfolio




IFSL Marlborough Multi-Cap Income - Diversified Energy 3.1% of £641m portfolio




M&G Index Tracker Fund
152,742shrs Diversified Energy £191k - 0.04% of fund

M&G UK Income Distribution Fund
5,997,178shrs Diversified Energy £7.5m - 1.56% of fund

M&G Dividend Fund
12,166,151shrs Diversified Energy £12.677m - 1.30% of fund




Vanguard Total International Stock Index Fund
Diversified Energy Co. plc - 10,900,631 shrs - $15,271,881 value



Chelverton UK Dividend Trust plc
Diversified Energy 3.09% of £53.1m portfolio

[laurence llewelyn binliner] 07/2/2023 08:24

Cheeky little top up at 110p this morning, thanks very much to VOD for paying out yesterday just in time.. :o)

A +10% rise in dividends announced at BP this morning too, O&G maybe dirty words for ESG and the climate activists, but the reality is we are no where near positioned to move away from fossil fuels yet, perhaps in 25 years the outlook will be different, but while China and India are building 10 coal/gas fired power stations for every 1 that the west decommission and oil powers just about everything else it just does not stack up on a global energy needs measure..

[fordtin] 07/2/2023 08:01

1knocker - re "I am surprised though that managers of income funds have not cottoned on though."

abrdn Equity Income Trust plc have 3.9% of their ~£190m portfolio in DEC &
CQS New City High Yield Fund have 3.27% of their ~£272m portfolio in DEC.

I'm not aware of any others, but wouldn't be surprised if there are more.