Diversified Energy Share Discussion Threads

[croasdalelfc] 27/9/2023 07:04

Stripper wells : the life blood of US oil production. Literally a million of them producing less than 10 bopd each.Here is one 55 years old : decline less than 1.4% . 3 bopd makes $50k a year net for the owner. Oily man Mike produces a very good blog btw .hTTps://www.oilystuff.com/single-post/one-man-s-junk-is-another-man-s-treasureThe strap line for this could be DEC motto :One man's junk is another man's treasure

[kaos3] 26/9/2023 13:23

OT - Frizz - thank you

PS ... they can do infill drilling to prolong and increase the reserves ... increase grid + increase depth + sell the infrastructure usage later on. not in the price imho

[cassini] 26/9/2023 12:37

Price given was 81p whereas all other trades were 79.95p.

*Unless it was some worked trade over some prior period and that 81p was an average price. I suppose it's possible they were sells if that scenario can happen..?

I don't know that an 81.000000p price dead nuts would be possible in a worked trade though, but I am not an expert.

[alotto] 26/9/2023 12:30

How do you know they are buys?

[cassini] 26/9/2023 12:28

Re: 5526

For those not wanting to bother looking them up, those trades are 2,000,000 each and obvious buys.

[fordtin] 26/9/2023 12:04

A couple of interesting trades printed at 12:01:12 & 12:02:24

[lomand01] 26/9/2023 09:14

Alotto. Credit facility not needed to run the business. I see it as a vote of confidence from their lenders and better than any analyst report as they have their skin in the game. It's the second time that there has been unanimous approval which means they have run their slide rules over the books. I don't know what DEC can do to change investor sentiment. The focus on divs is seen not as a virtue but as a liability. It'a unique company in its sector and understandably investors are wary.

[fordtin] 26/9/2023 07:59

Any acquisition at the moment would need to be an absolutely amazing bargain if it's going to be more accretive than buying back shares at a ~24% discount to the last placing.
Especially as the last placing was at a massive discount to the previous buy backs!

[alotto] 26/9/2023 07:55

I hope the plan is to acquire more assets rather than allocating capital for dividends.

[lord gnome] 26/9/2023 07:18

I think that the history of this company indicates that it is always looking to make acquisitions and the increase in the borrowing base gives them additional flexibility if a target appears.

[alotto] 26/9/2023 07:07

RCS – Diversified Energy – Diversified Announces Increase in Borrowing Base.
Why the need to increase the borrowing base? Is DEC planning another acquisition or is there any liability to be met or what?

[croasdalelfc] 26/9/2023 07:05

Reserve exploitation always depends on price achievable - revenue minus opex .It could be 100 years if the price is right - conversely it could be 10 years

[alotto] 26/9/2023 04:36

Lab305 would you say that DEC has sufficient reserves to produce for the next 50 years as claimed?
Regarding debt, would Kris Douglas (I believe that's the name of the investor relations representative) be able to answer your question?

[lab305] 25/9/2023 23:26

Of course I am referring to the share price . The placing was disgraceful for a start. The lack of engagement with shareholders. The broken , if not promises, undertakings. They couldn't even get a simple RNS right this morning. Dithering , lack of commitment on two buyback programs. The results are certainly not the same as they have always been. The 10% decline rate is in stark contrast to that of virtually zero in the initial years. Debt increased. Why ??. The share price is where it is because of the actions or lack of them taken.
Lastly having been told countless times how great the very high hedging level was surely now when gas prices have been very low for some time this is our chance to shine. Not so . Other gas producers in the US are performing far better than this. Yes I stand by my assessment but perhaps deplorable would be a better description.

[lab305] 25/9/2023 23:00

Dec had gas wells still producing after 60 years. They cited examples of them in Appalachia around 5/6 years ago . These were conventional wells of course not their newer purchased shale. They have a much faster decline rate.

[1knocker] 25/9/2023 22:52

Lab 'the performance is disgraceful'.

Over the past year DEC has continued to produce results pretty much exactly as it has always done, applying exactly the same business model, and has continued to churn out the same dividend. Which part of that is 'disgraceful'?

Or are you just bleating about the SP?

Unless there is something 'disgraceful' in the operation of the company's business which has been rightly reflected in a falling SP, I do not see how the share price reflects badly upon the management of the company.

[alotto] 25/9/2023 22:00

There was lot of noise one year ago regarding the producing life left of the gas wells, DEC estimating 50 years of producing life remaining against the industry average of 20-30 years. Notice wells are about 20 years old which takes the oil wells to a stunning retiring age of 70 years.
How did DEC could estimate such longevity for the wells and what's the technology to keep them producing and profitably producing?

[lab305] 25/9/2023 21:37

Just to remind you that if this drops another 8p from where it was today it will be 50% down from where it was 13months ago. Yes we have had about 15p but that pales against the losses. The performance is disgraceful and none of the prophesies made have yet materialized. Still we have 3 months left but an enjoyable ride this is not.

[stevensupertrader] 25/9/2023 20:22

At the current share price , the annual yield is almost 17% . Am eye watering dividend .

[1knocker] 25/9/2023 20:21

I don't like share buy backs, and would prefer to see excess cash used to pay down debt or returned to shareholders by way of special dividends. It is hard to argue with the arithmetic though when the shares taken out save the company dividends at 17%pa !!

It looks as though all the stars are aligning for those intending to reinvest the dividend in further shares - favourable exchange rate and low share price

[stevensupertrader] 25/9/2023 20:14

Is a bad choice of the 3 options you given Ie BB stock.
In fact it gave me the opportunity to buy today at 79.8 😂

[lomand01] 25/9/2023 20:02

Stephensuoertrader. The provision to BB stock is not a commitment. Also it's not intended as a means to manipulate the share price. In fact it can't be used in that manner. Companies generally have a choice with their excess free cash. They either pay out as divs, reinvest in the business or share buybacks. Often it's a combination of the three based upon the risk reward of each. There is no hard fast rule.