Diversified Energy Share Discussion Threads

[bountyhunter] 05/7/2021 07:48

I know, likewise.

[kaos3] 05/7/2021 07:43

bounty - it is not important in the grand picture - just want to learn

[bountyhunter] 05/7/2021 07:36

Kaos yes confusing as if below market how can they be worth $24? However hedging is not rocket science so I'm sure that DEC/Oaktree will have factored the hedging into the price paid.

[kaos3] 05/7/2021 07:32

I like the evident trust of the Oaktree. DEC gets the majority and the driving position. Oaktree participation gives me great confidence improvement - that they will oversee the hedging procedures and put in additional in house knowledge into the hedging process in the long term

[gary1966] 05/7/2021 07:28

Assume Oaktree will pay half of the Blackbeard acquisition in due course as well. Plenty of room for more acquisitions from current resources but they are now looking to increase the RCF which suggests to me it won’t be long before we are hearing of another deal.

What I would like some info on is the likelihood of hitting an unlevered IRR of 10% so that our share increases to 60% as that is where the real money will be made.

GLA

[lord gnome] 05/7/2021 07:28

No smoke without fire then. Someone at Cenkos will have had a good kicking for the slip. Looks to be a great deal. Buying good reserves and cash flow at such low multiples is excellent business. Forced sellers? Well done Rusty - again.

[senn1] 05/7/2021 07:25

Open price chaps any ideas

[kaos3] 05/7/2021 07:24

is it nominal value of the hedges bought at 24 mil? (neither gas quantity nor price per unit given - why)

and still having some value for DEC like:

must sell part of the future production at 24 mil,

could have sold at (lets say) 31 mil

but still making profit of 8 mil

as the production costs are 16 mil

That is how I get it ???

[senn1] 05/7/2021 07:21

Happy days all the same what price open 1.30??

[lab305] 05/7/2021 07:19

Well done johnhemming for spotting this on Friday .

[bountyhunter] 05/7/2021 07:18

That's what I wondered, especially how they can be worth $24m unless hedged recently at high rates?

[kaos3] 05/7/2021 07:14

what exactly does that mean? TIA

"Diversified assumes certain below-market natural gas hedge contracts through 2023, valued at $24 million as of 25 June 2021 (the "Assumed Hedges")(collectively with the cash consideration, the "Purchase Price") "

[senn1] 05/7/2021 07:10

No dilution should open well up

[scepticalinvestor] 05/7/2021 07:07

Decent addition

[johnhemming] 05/7/2021 07:07

Completion of Blackbeard Acquisition

Diversified Energy Company PLC (LSE: DEC) is pleased to announce that it has completed the purchase of certain upstream assets and related infrastructure within its Central Regional Focus Area ("Central RFA") from Blackbeard Operating LLC ("Blackbeard") (the "Acquisition") as previously announced on 20 May 2021.

[johnhemming] 05/7/2021 07:04

Well its up now as a conditional one


Its not on investegate yet.

"The Company signed a conditional purchase and sale agreement with Tanos on 2 July 2021 to acquire 390 net operated wells producing 14 MBoepd (82 MMcfepd; 96% natural gas) located within the Cotton Valley/Haynesville producing area of northwest Louisiana and east Texas. Diversified and Oaktree expect to close the transaction in mid-August 2021 following customary diligence, reviews and approvals."

[senn1] 03/7/2021 10:57

I would say there is a deal being done but not completed as yet and someone jumped the gun.

In reponce to the article, all they had to say was it's false end of, no more wording needed.

[johnhemming] 03/7/2021 09:33

It is, of course, possible that for some reason a deal may not be done. Hence I think their response is basically right. They are talking about deals. We have some idea as to what this deal might be, but at this stage it has not been done.

[senn1] 03/7/2021 08:34

They would have been better off saying there in talks after the leaked note. Rather than try and cover it up with mumbo jumbo which nobody swallows anyway. It's clear as day something will be happening very soon. And the terms look good if true.

[johnhemming] 02/7/2021 18:09

Well Cenkos say it is a proposed transaction. Obviously the fat lady has not sung this particular note.

[senn1] 02/7/2021 18:02

The RNS says somethings afoot

Otherwise just say it's fake news

No point in releasing the rest if nothing was being done behind the scenes.No certainty and all comments

[johnhemming] 02/7/2021 17:50

I would not suggest it was kite flying at all. I would suggest someone (and not an employee of DEC) made a mistake.

[cassini] 02/7/2021 17:49

This wasn't a bit of kite-flying, was it..?

[johnhemming] 02/7/2021 16:30

We refer to today’s announcement released by Diversified in which the Company highlights the erroneous publication of research in relation to a proposed transaction. This research was published due to an administrative error, for which Cenkos apologises. We will update the market in due course following any further announcements from the Company.