Diversified Energy Share Discussion Threads

[1knocker] 09/2/2023 08:41

astreix, the usual procedure (at HL anyway) is to take the full price of the shares applied for, and recredit any balance when the number actually allotted is known. You may be lucky, as applications below a certain level are sometimes allotted in full. One occasion when the small guy gets a break! On the other hand if it is heavily oversubscribed there may be a flat number allotted to each applicant applying for that or a greater number. Pure pro rata scale back is relatively rare in my experience. The really interesting question though is how many PIs applied at all. If so few on this board heard about it in time, how many who don't follow a chat board will have done so?

[redtom1] 09/2/2023 08:37

I applied for £10,000 worth and it looks like it was 100% allocated. I was lucky and replied very quickly via HL.

[bluemango] 09/2/2023 08:36

#4043 Not only that, but also buybacks reduce the divi overhead for the company on those cancelled shares.

Nice to see the market perhaps starting to recognise this Acquisition was quite a good, opportunistic deal.

[kaos3] 09/2/2023 08:32

11 percent

just maybe they think

return on shares bought at these prices

is even better

than the return on the latest deal
---------------------------
but might be wrong as then they sold shares cheaper than bought lol

I am confused about my own logic

[owenski] 09/2/2023 08:30

Depending on exchange rates, current share price buys in a yield just shy of 13%,a penny here or there on the share price doesn't really make a difference.

[owenski] 09/2/2023 08:26

Able to buy at scale in current market at less than a couple of pennies more than the offer, not a big deal if one is in this for long term income anyway.

I often ignore the pressure of these 'lets include the PI's with a token supplementary offer' anyway, as one often gets pittance allocations and the stress of getting it done in short time frames and ending up with odd numbers of shares. One can normally buy in the open market after the raise has gone through at near enough par to the offer anyway and know what you're actually getting.

[gary1966] 09/2/2023 08:24

IG didn’t send anything to me and I didn’t see the announcement until way too late unfortunately. Well done all those that managed to pick some up.

[astreix] 09/2/2023 08:23

Applied for 10k via II and this morning the full amount got taken from my account. Does this mean no scaling back for retail or would that be decided later and some funds returned to a/c?

[11_percent] 09/2/2023 08:23

Why were we dishing out money on the Share Buyback......and then doing a placing to get that money back.

[laurence llewelyn binliner] 09/2/2023 08:22

#Bluemango, the new issue is slated for admission 28th after a GM 27.02.2023, usually I would expect the share price to hit the placing price, but here, given the robust dividend on offer to book, the share could well get bought and only half way there..?

[shanklin] 09/2/2023 08:19

Both HL and iii sent out emails sufficiently early to enable holders to subscribe for shares, as I did. What else are they meant to do... ...phone everybody personally?

[dunderheed] 09/2/2023 08:18

It's a great deal IMHO.
These kind of primary bid things go on all the time - surprised at the "surprise" here??!
EDIT, sorry S93, lol at your comment! Hope everything good with you?

[bluemango] 09/2/2023 07:42

Given the extremely tight window when retail investors had time to act, I'm not surprised if they weren't all taken up. I'm reading of many who were only aware after the event.

Market reaction will be interesting. Will it drift down to Placing price or will the synergies, accretion to Free Cash Flow etc be recognised by the market?

[t-trader] 09/2/2023 07:39

I’ve applied for 10K worth just before the close at 18:30 yesterday, be interesting to see if i get the allocated amount.

Either way, still expect the share price to possibly hit the placing price as this happens most times when there is a placing.

[spangle93] 09/2/2023 07:35

Haven't heard about any retail scaling back yet, but the RNS notes "128,444,000 new Ordinary Shares in total (126,737,763 Placing Shares, 1,706,237 Retail Offer Shares)", whereas the maximum retail was $3MM, so suggests they weren't all taken up

[spangle93] 09/2/2023 07:33

Cenkos view of Acquisition



The portfolio includes 150 net operated
wells, 17Mboepd of production (76% natural gas) and PDP reserves of 25mmboe
(152Bcfe). The assets offer the same long-life, gas weighted production potential and
low terminal decline as the Company’s broader portfolio and are ideally located
within Diversified’s core Central Region focus area, providing an opportunity for
strong synergy potential.

...

The acquisition provides a significant upside
opportunity for Diversified through the undeveloped acreage included within the
assets but not included within the purchase price. The acquisition includes 50
undeveloped locations with an estimated incremental PV10 of US$280m. Adjusting
the acquisition metrics to include this undeveloped reserve value results in a
purchase price discount of c58%. This significant upside also provides Diversified
with the opportunity to realise this value through monetisation or opportunistic
development with a financial partner. This strategy saw Diversified successfully monetise a similar undeveloped Haynesville acreage position, acquired from Tanos Energy Holdings III LLC in August 2021, significantly reducing the net purchase price.

[ntv] 09/2/2023 07:28

I would have thought a £1 buying op will come along over the next week or so based on VWAP

[laurence llewelyn binliner] 09/2/2023 07:04

A 5% discount to VWAP and 105p for the raise, I would expect the share price to hit the new issue price and we should be able to buy at that price on the open market today...

[bluemango] 08/2/2023 23:37

20% increase in free cash flow is rather good ...

[cameo4] 08/2/2023 22:44

DEC bought assets from Tanos energy in 2021 along with Oaktree capital and then sold the undeveloped assets on.
I can't remember the figures or reserves but it was a shrewd move as I remember.

[greygeorge] 08/2/2023 22:16

Thanks redtom1. It's re-assuring to know someone managed to apply in time, at least.

[redtom1] 08/2/2023 22:11

I applied for £10,000 worth. I will let you know what I get, if any, and at what price.

[greygeorge] 08/2/2023 21:54

spangle93, I've seen wholesale book builds done and dusted before any RNS is even published, never seen one for a retail offering though, not one that closes within a couple of hours of being announced. It will be interesting to see if anyone here got the opportunity to apply, did apply, and what their final allocation will be when it's announced.

Obviosuly, for me, I missed the announcement, so applied for zero, and will receive zero.

Edit to add - Also, they knew how many shares they were issuing, and know how many shares are currently issued, so why not make the offer a 1 - 100, or whatever the ratio would be, for everyone to have the opportunity to participate ?

[spangle93] 08/2/2023 21:35

GG - if the retail offer is oversubscribed, there will be a scaling back, which I assume will be pro-rata though other forms of scaling have been used by other companies.

It's stated in the RNS. There's a maximum of $3MM available for retail investors

[greygeorge] 08/2/2023 21:20

appollocreed1, not only 'unfair' but possibly illegal ? As it's a retail bookbuild, the normal procedure, if it was over-subscribed by the notified close time, additional shares should have been offered, or the shares offered should have been reduced on a pro-rata basis. something is rotten here.