Diversified Energy Share Discussion Threads

[lomand01] 28/7/2023 13:55

The other option is a merger with a listed entity. Not my first choice but may be a possibility under the circumstances. Rusty is more than capable of thinking outside the box....The problem/advantage of DEC is that is unique amongst traditional O&G companies with no real peers. Hence even the analysts struggle to be able to value it.

[cassini] 28/7/2023 13:38

I'm suspicious that the reason the buybacks aren't going ahead is that they have identified a new acquisition/target of opportunity and the buyback cash is being saved for that.

We can only hope that if so, this will be a cash/revolving credit facility purchase this time.

AFAIK the capitalisation of DEC is not large enough yet for a US listing ($2bn was mentioned) so we just get to hang on for a rough ride for a while yet...

As long as the dividend looks safe I will continue to hold, although I'm slightly underwater at this price I'm still up on the deal if counting divis as well.

As a small investor there are only two realistic alternatives - stay in or sell up. Given that at least part of the price drop is sector-driven I can't lay all of this on DEC. My other two energy stocks are IOG and GKP and man, DEC looks like a beacon of stability in comparison.

[lab305] 28/7/2023 12:05

Does anyone think that there is a problem with credibility here ? I have been invested for six years and just to remind people the share price hit 132p around March 2018. Rusty and the company quickly acquired a reputation for delivering as promised and "doing what it said on the tin ." Then Covid came along and despite several assurances that there were bargains to be had no deals were done for a whole year.
Subsequent to that things improved as deals were done and gas rose. We never enjoyed the meteoric rise of other gas producers but then we were safely hedged protecting us from the downside......or so we thought.
Last year after the share price dropped from 144p to 128p a buyback scheme was launched. It lasted only 28 days and then abruptly stopped having used only a fraction of the allotted cash. However it was effective whilst active holding the share price to within half a p during the period. As the share price then fell again we soon had the placing at 105p , significantly below the share price at the time. This was the second placing the company had undertaken despite assurances that they would not be a repeat after the first disastrous one. The result was predictable and it was followed by a significant fall to 82p.
Then another buyback scheme was launched . This was just a sop to disgruntled shareholders and has only been used on 2 days in over a month now, spending a fraction of the allotted cash.
You could argue that the threat of the buyback underpins the share price and so is actually working as the price has risen but begins to look like the boy who cried wolf.
I believe the company should act and seriously do everything it can to restore the share price to a reasonable level of around 115-125p. The swathe of deals promised in Rusty's March statement have yet to materialize as has the US listing...."the main initiatives of 2023, obviously the US listing is of most important. It will get done, It will get done."
We have 5 months of the year left and if the "enjoyable ride " for shareholders is to happen the almost 12 month downtrend has to be decisively broken.

[lab305] 27/7/2023 18:34

2.516 -0.149 -5.59% Gas down sharply today so no headway made.

[aleman] 26/7/2023 22:22

Yes, there is - usually. Yet six days without falling back to retest the 50-day ... could also be seen as positive. Time will tell. I'm not buying or selling on it. It's just an observation and beats more comments on tax!

[gary1966] 26/7/2023 21:17

Aleman,

Quite often there is a backtest to see if there is a reaction and thirst for a rally. Coincidentally a back test of the 50 day would be around the gap in the chart I mentioned.

GLA

[aleman] 26/7/2023 17:30

20-day crossing the 50-day often coincides with a go at the 100-day. It's nearly there and looks likely at the moment. I don't trade this stuff but I keep an eye on it. It sometimes influences me if I'm wavering over fundamentals.

[oneillshaun] 26/7/2023 11:53

It was me... A little closer to 100p would be good but no plans to sell for the foreseeable future

[1knocker] 26/7/2023 11:28

I think the poster who said that after a couple of dividends he was pretty much breaking even here hit the nail on the head. A couple more and he will be decently ahead, even at the current share price

If you need to sell, the current share price is a problem. If you want to buy, it is a boon. If you have built your position and now holding and watching the income flow in, it does not matter one way or the other.

[tom111] 25/7/2023 07:58

Seems they have little interest in buy backs otherwise they would have bought at cheaper prices and we are not far from £1.00 .No it looks like more likely imo that another acquisition is on the cards

[lab305] 24/7/2023 20:24

Absolutely oneillshaun a horrendous 11 months but if you mention it you are normally met with complacency and reminders of how high the dividend is. The dividend % is so high because the share price is deplorably low. The share buybacks would have helped but the company seems to have no real intent .

[oneillshaun] 24/7/2023 19:27

Almost breakeven lol now the 3 dividends in since I bought the share price decline has been horrendous

[lab305] 24/7/2023 13:52

NATURAL GAS
2.754 +0.041 +1.51%

GBP-USD X-RATE
1.2829
–0.0025–0.19%

[croasdalelfc] 23/7/2023 17:22

hTTps://seekingalpha.com/article/4617934-diversified-energy-a-15-percent-dividend-yield-thanks-to-its-strong-hedge-book

[gary1966] 22/7/2023 09:32

GARYCOOK,

Yes I do like gaps as they almost always get filled, especially if they are below current prices with short term technicals for the share and the indices in overbought territory.

[garycook] 22/7/2023 00:51

Gary1966, You like your gaps don,t you.See you have been selling other shares for the same reason !

[gary1966] 21/7/2023 17:16

Sold my shares in the closing auction. Only rationale is that short term indicators are well in overbought territory and there is a gap on the chart at 88.90p and DEC does like to fill the gaps.

GLA whichever way you decide to play it.

[gary1966] 20/7/2023 07:54

IG-no stamp duty and 15% WHT in ISA

[marksp2011] 20/7/2023 05:23

LlbYou can reopen your 2022/3 self assessment onlineIf you need to go back before that I would file a claim for refund

[cassini] 20/7/2023 00:00

LLB,

Although it is UK listed, from what I heard it is considered a US domiciled companty for tax purposes as that's where it pays all its taxes.

The UK listing does make it liable to UK Stamp duty though.

[laurence llewelyn binliner] 19/7/2023 20:32

#marksp2011, appreciate the follow up, the R189 is a printout schedule of non UK dividends received, Barclays have deducted 30% WHT so I am hoping to recover the missing 15% I should have got through a self assessment, perhaps reclaiming all of it is a bit optimistic.. :o)

It may also be a technicality, but DEC being UK listed not US might have some bearing on the arrangement, but these are Q's I am waiting feedback on..

[marksp2011] 19/7/2023 20:23

LLBYou are confusing thingsISA are tax free for UK taxes. They are not tax free for US taxes. The W8 Ben gets you a reduced rate of 15% on US witholding tax that is not a UK taxSipps are authorised pension schemes and have a witholding tax rate of zero

[laurence llewelyn binliner] 19/7/2023 19:54

#marksp2011, this is exactly what I have asked my accountant to confirm for me, as I will be using it, but not just the missing 15% WHT, I am hoping to recover the 30% as dividends inside an ISA should be tax free..

#Howard Moreton - self assessment section 5 - foreign, if you:
• were entitled to any foreign income
• have, or could have, received (directly or indirectly) income, or a capital payment or benefit from a person
abroad as a result of any transfer of assets
• want to claim relief for foreign tax paid

Section 7 - tax taken off foreign dividends (the sterling equivalent), I plan to use the R189 form deduction figure.. :o)