Diversified Energy Share Discussion Threads

[lomand01] 21/6/2023 11:10

Bigger chance of Rusty taking this private and why shouldn't he? Consistently delivers and yet unloved by investors

[gary1966] 21/6/2023 11:10

Janhar,

Might I direct you to AA4. Better yield outside of a SIPP and trading at substantial discount to NAV.

Apologies for slightly off topic.

[aleman] 21/6/2023 10:48

EU reserves are up to 75%. At this point, they usually start to taper. Portugal, Spain and Sweden are now effectively full at 95%+ so will struggle to squeeze more in. Reserves have continued to fill despite an outtage cutting Norwegian exports by 1/4 for 3 weeks. I'm not sure what this will do to US prices but it has to be a headwind, does it not?

[janhar] 21/6/2023 10:10

I'm here for the income - where else can you get that kind of yield? Any upside is a massive bonus.

[lab305] 21/6/2023 10:07

Why don't they just get taken over buy a hostile predator ? Value must be looking compelling at this level. Just six more years and they will be debt free and that's while they are paying out 15.5% per year in dividends . Surely there must be companies sniffing around.

[1knocker] 21/6/2023 09:57

renewed1 you seem to be getting your wish re the price - in spades!
Roll on divi day.

[scrwal] 20/6/2023 12:24

40% of US electricity comes from gas and with the high temperatures demand has increased partly because of air conditioning usage so going forward summer demand looks like being higher on a yearly basis. Does this mean higher prices , possibly but what if exports are diverted towards US consumption then the rise might not be as high for US pricing but the rest of the world would be facing a supply shortage.

[lab305] 20/6/2023 10:14

Good find bluemango. With export capacity in the US ramping up prices must must eventually start to align with the rest of the world.

[bluemango] 20/6/2023 09:01

Copied from I3E thread this morning:

tonynorstrom1 20 Jun '23 - 08:52 - 31404 of 31404



An interesting read.

The bull case for Oil:

“After many false starts, Hubbert’s Peak is finally here.”

“The only growing non-OPEC basin is the Permian in West Texas”

“The Wall Street Journal recently wrote a pivotal article (using data from NoviLabs) stating that Permian per-well productivity fell in 2022 for the first time in the field’s shale development history.”

“We are almost 100% dependent on the Permian basin for any supply growth, and the basin shows signs of depletion. Permian production could peak entirely sometime in the next twelve months. Disappointing supply, strong demand, falling inventories, and bearish psychology could result in attractive returns over the next 12 months for those willing to ignore the consensus.”

The bull case for Gas:

“The Gas Crisis is Coming to America,”

“we believe North American natural gas convergence with international prices could happen much faster than anyone expects”

“Considering Freeport, with its 2.0 bcf/d of capacity, was shut for nearly ten months, we estimate the US lost 600 bcf of total exports during the period. In other words, all the inventory builds resulted from the unexpected outage. With Freeport entirely back online, the question is where inventories, and by extension prices, go from here. Our modeling suggests the answer is lower and much higher, respectively.”

“If our thesis is correct, the upside potential is dramatic: Henry Hub could rise more than five-fold. At the same time, we believe the downside is limited. At current prices, few compaanies can generate attractive rates of return and many are laying down rigs. Henry Hub is only 30% above its all-time lows; any near-term weather-related weakness would likely result in much less drilling and lower supply. We cannot recall a commodity market with a five-fold potential upside and only a 30% potential downside. While enterprising traders might prefer to wait until late 2024 to make their investments, we believe the risk is that prices rally sooner.”

[renewed1] 17/6/2023 08:03

Keep the price down till I get my Divi!!!!

[1knocker] 16/6/2023 18:29

If and when the price recovers, no one is going to be able to say he did not have an opportunity to get in when DEC was cheap!

[gary1966] 16/6/2023 02:44

There is a gap on the chart at 86.95p that if history repeats itself, will be filled. Closer we get to it the bigger the pull towards it.

[scrwal] 16/6/2023 00:25

spawny100

Hopefully the price will move up as gas move up but the % increase will be significantly lower than the less hedged companies - our high hedging should protect when prices fall but restricts when they rise rapidly.
The current price weakness is due to the snap placing and then getting a right kicking because of the macro events.
US gas is up because there is going to be high demand to power all the air conditioning equipment given the current temperatures.

[spawny100] 15/6/2023 22:36

So given that DEC price is so low when gas price is so low and they're hedged to 2025 can we expect their price to go even lower once gas prices start rising again and other less hedged companies start to reap the rewards? Only being slightly facetious. Nothing surprises me any more in the stock market casino.

[bountyhunter] 15/6/2023 21:45

US natural gas is up strongly this evening..

.......................

[aleman] 15/6/2023 19:35

Tempting to link it to the $'s fall today - but it's interesting how the shares actually seem to move before the currency so, er ... maybe not?


free stock charts from uk.advfn.com


free stock charts from uk.advfn.com

[lab305] 15/6/2023 19:22

Natural Gas 2.561 +0.219 +9.35%
Could someone explain the absolutely dire performance of this share since last summer. Excuse after excuse like oh it's following the gas price . Well what rubbish . It certainly didn't today. Isn't this the time when DEC with it's heavy hedging policy and low gas prices should shine???

[justiceforthemany] 15/6/2023 16:42

What's the adjusted EPS here? Complicated due to all the write offs.

[fred177] 15/6/2023 15:52

Presentations in New York potential listing ?

[drk1] 15/6/2023 15:02

Recommended in today's Shares Magazine -

"A significant sell-off in the shares of US natural gas producer Diversified Energy Company (DEC) reflects weaker North American gas prices. However, the company’s model of acquiring mature fields with low rates of production decline and using its cash flow to sustain generous dividends is a tried and tested one. The company has hedged gas prices out to 2025 which should provide greater visibility on
revenue and cash generation. The company also received a boost after a syndicate of 14 banks reviewed the North American oil and gas firm’s borrowing base and maintained it at $375 million, giving the company liquidity to pursue further deals to increase its production. On this basis we think a 15.4% dividend yield is an anomalous opportunity rather than being too good to be true. Buy the shares."

[aleman] 15/6/2023 09:56

EU gas is sharply up again on that Norwegian outtage. Is this helping drag US gas up? They both turned up around June 1st. The EU is still buying strongly for reserves (currently 73%+) but that should fade soon as some countries are about full.

[11_percent] 15/6/2023 08:24

US listing.....bring it on.....at last.

[simplemilltownboy] 15/6/2023 07:51

RNS from this morning would suggest a US listing may not be that far away. Tick tock

[carcosa] 14/6/2023 11:01

US natural gas futures rose above $2.3/MMBtu, extending a 3.8% gain in the previous week boosted by higher demand and lower supply. An anticipated heatwave from June 21-28 is likely to boost demand for gas to produce power for air conditioning. Additionally, the domestic output is falling from May's record level of 102.5 bcfd. On the other hand, gas flowing to U.S. LNG export plants dropped to a five-month low due to maintenance at several facilities, including Cheniere Energy Inc's LNG.A Sabine Pass in Louisiana.

hxxps://tradingeconomics.com/commodity/natural-gas