Diversified Energy Share Discussion Threads

[greygeorge] 07/3/2023 14:36

Of course, on the other hand, scrwal could well be right, when he says you should 'Trust the Plan'. Lol.

[greygeorge] 07/3/2023 14:35

huckers - Long story that everyone would question the veracity of anyway. But talking to people who actually work in the industry, are familiar with the geography and history of the Texan region, and know 'stuff', has left me wondering about the confidence I had in this company. You see a lot of raised eyebrows, knowing nods and pitying looks when they start to explain the accounting questions, the production estimates, the closure costs, and timeframe of closures. I had some doubts about those who questioned the business plan, but they called the Tanos II deal, how it would play out, and it looks like they were right. Don't know exactly how long things will take to come to light, but the last thing Rusty wants is to go for a listing in the US and having the accounts thoroughly vetted.

[fred177] 07/3/2023 14:16

nice dividend here with good history, ride the waves and take your return

[stevensupertrader] 07/3/2023 14:07

current market cap is under 1B, so how to reach 2B???? Just all hype therefore dual listing won’t be happening !!!!

[scrwal] 07/3/2023 13:08

11%
Rusty already has a plan as he has stated that there would be a dual listing when the market cap is $2bn.

[11_percent] 07/3/2023 12:39

scrwal,

Ok, cheers.....point taken.

I can see the uncertainty at the moment would stop any US listing.

A lot of this uncertainty would seem to be self inflicted......low share price placing...in an environment where the share price has been sliding for months.

Your second sentence......I am a bit more unconvinced about......these are factors which will always be with us.

In any case....yes....bad time for a US listing.

However....this does stop Rusty getting his act in gear and putting a plan in place for the listing when conditions improve.

[scrwal] 07/3/2023 12:16

11%
Big current drop in the share price primarily and the probability that there is market uncertainty about the share yet again.

The US gas prices rising would have little effect on DEC in the shorter term because of the hedging. The more important figures are the pricing two years down the line.

[11_percent] 07/3/2023 11:34

Ref 337.

"Once again Rusty's hopes for a dual listing are on ice because of the placing."

Hi scrwal,

Can you explain why this is the case please.

Cheers.

[bountyhunter] 07/3/2023 11:16

When the US gas price rises with reserves requiring refilling and Freeport reopening DEC will most likely follow.

[stevensupertrader] 07/3/2023 11:05

DEC is TANKING - no support at current time and can’t see any proper support till nearer next quarter dividend date

[huckers] 07/3/2023 10:43

greaygeorge. I see you have posted prolifically on DEC over time. Your older posts seemed to be broadly supportive of the investment case. If you don’t mind me asking, what has changed for you other than the disappointing current share price?

[greygeorge] 07/3/2023 00:10

waddilove1 - '...I think the share issue was done badly but as it was a good deal time was limited...'

Yeah, why was that, do you think ? Time being limited, I mean. How many companies are you a shareholder in, where you've been told 'Quick, it's too good a deal to pass up, get in while you can, this deal is too good to last' ? Why was this particular deal so rushed ? Not the deal itself, but the chance to get in on it ?

[waddilove1] 07/3/2023 00:00

It seems odd the price keeps falling.

I noticed an article on methane emissions in pensylvania causing concern, completely different company and DEC did have issues but sorted them out

I think the share issue was done badly but as it was a good deal time was limited.

Mind you can buy cheaper today.

Any thoughts
Hoping 100 holds tomorrow not sure where it's headed if it goes below.

I hold shares in DEC

[greygeorge] 06/3/2023 23:40

bothdavis, maybe I'm just offering a realistic view of how things work. If something seems too good to be true, it's often because it is too good to be true.

For example why did Rusty list in a foreign country when his own country's stock market is such an excellent tool of capitalism. Why doesn't anyone who actually understands the oil and gas industry pile into this company, scooping up a 14%+ yield ? Those who are in the know are treating this company like the next Enron rather then the next Exxon ?

This Tanos II deal stinks, the accounting methods of DEC stinks, their numbers are laughed at in Houston, as are the mugs who've piled into this mythical unicorn.

A lot of people here see Rusty as some great philanthropic ex-financier-turned oil and gas genius who's looking out for us little guys, paying big dividends while giving us all the opportunity to snap up issues at great discounted prices - but gotta be quick, 8 hours to sign up or you'll lose out, don't be the sad shmuck who misses out.

Really, how many Texans does anybody here know who are generous and would rather spread the wealth with a foreign investing pool than with his own people ?

[bothdavis] 06/3/2023 22:25

greygeorge....you are negative on DEC....but offer up no reasons as to why? Can you explain your rationale please?

from someone 26% down on purchase price and wishing I hadn't pressed buy!

[greygeorge] 06/3/2023 22:15

'...Perhaps in future DEC will do better to borrow, let the investment prove itself, and only then issue additional capital to repay the debt...'

Perhaps nobody is prepared to lend to DEC. Not anywhere near what DEC values its' acquisitions at, anyway. And, if financiers won't finance an ex-financier, the question has to be - Why won't they ? Looks like DEC doesn't have the option of issuing bonds either - probably because they'd be rated 'junk' - and interest rates would be above the - as cassini sees it - fantastic 14% + dividend DEC has to pay on its' newly issued share capital.

But no worries, eh ? Lol.

[scrwal] 06/3/2023 22:09

1knocker
Maybe they were forced to do the issue because Oaktree didn't want to participate possibly.

[bluemango] 06/3/2023 19:12

An even bigger percentage drop today in very similar business I3 Energy, so don't worry about it; not specific to DEC.

[scrwal] 06/3/2023 18:11

This is what has happened in the past following a snap issue creating uncertainty in the market. Any headwinds the price gets hit but the reverse doesn't happen because of the uncertainty - something that had been removed some time after the previous snap placement. Given the inherent high hedging any uplift in current gas prices is irrelevant. The price may continue to drift lower in the immediate short term but will then reverse things and meander back to the 110s at some point - may be 3-6 months time.
Once again Rusty's hopes for a dual listing are on ice because of the placing.
There has been no indication of any Oaktrees participation which is unusual.

[cassini] 06/3/2023 18:06

1knocker,

Nat gas $2.63, that's -14% today, so not stronger, quite the opposite at the close for London.

I think that's part of the reason behind the drop.

As for where the the bottom is, we've bounced off 95/97p several times in the past and we may have a rendezvous with those levels again.

[bountyhunter] 06/3/2023 18:03

Baffled here too, will probably bounce back tomorrow! Keep an eye on the OTC chart.

[1knocker] 06/3/2023 17:54

I certainly was not expecting DEC to drop below 100 this week; quite the contrary, I was expecting an share price rise, with perhaps a day or two of weakness first immediately following the ex d date on 2 March.

With O&G prices looking if aching a little stronger, and the placement and ex d date now behind us, a 3% fall today is substantial. I imagine the 105p placees must be as disconcerted as I am. At present they are out of the money even after allowing for this quarter's dividend. With shares issues at a discount to fund what looks ike favourable investment, today's fall has me baffled.

Some North American gas stocks are also down today, but not by so great a percentage as DEC, so I don't think one can explain this as a secure movement.

[greygeorge] 06/3/2023 15:50

cassini. Yes, a 14%+ yield. And a tanking share price. And, you're not wondering what's going on ? Lol.

[stevensupertrader] 06/3/2023 15:43

DEC is tanking today and likely to go below £1 soon and joining the penny shares club

[cassini] 06/3/2023 14:18

That's 14.4% yield forward looking at the current offer price and exchange rate! (in a SIPP).