Diversified Energy Share Discussion Threads

[lab305] 28/9/2023 22:07

NATURAL GAS
2.945 +0.046 +1.59%
Gas price approaching 3. Share price not responding. A complete lack of any feel good factor day after day , month after month. I was expecting a blockbuster year with lots of news and deals but nothing .As gas prices now increase value acquisitions will be harder to find. If they are paying 17% as quoted here why are they not hoovering up cheap stock and saving millions?

[stevensupertrader] 28/9/2023 12:06

Yield is over 17% and rising at the expense of share price

[stevensupertrader] 28/9/2023 11:56

Amateur Board decides on Buyback, what a waste of Company valuable funds , reduce debts would be a better option as then next year the account figures would look more pleasing . Definitely going under 80p even oil and gas prices are up due to US winter supply shortage . Dividend yield is shooting up and share price is moving in opposite direction. - DEC is definitely unloved and unwanted , already investors confidence is at all time Low ,

[skinny] 28/9/2023 08:50

Normally after midday (most dividends).

[bluemango] 28/9/2023 08:44

Yes, usually - apart from some overseas ones which can be a couple of days later.

I'm pretty sure DEC is paid on time, so that will be sometime tomorrow, 29th.

[t 34] 28/9/2023 08:36

Does HL credit account with divi on payment day?

[lab305] 28/9/2023 06:08

So predictable. Just 2 days of Buybacks = Share pullback from 78p. Reinvestment of dividends should provide some support from tomorrow for a few days.

[mondex] 27/9/2023 14:20

From S&P Global:

Big US gas drillers have 50% of H2 2023 production hedged at $3.35/Mcf
Large US shale drillers have hedged 50% of their anticipated natural gas production for the second half of 2023 at an average price of $3.35/Mcf, well above the NYMEX curve, according to an S&P Global Commodity Insights report.

The nine drillers comprising Commodity Insights' peer group of large North American gas-focused exploration and production companies are also buying more price protection in 2024, the researchers said, in anticipation of a further rise in gas prices. All nine are based in the US.

Hedges contributed $924 million to the peer group members' cash flow in the second quarter because the benchmark NYMEX Henry Hub gas futures prices were closer to $2/Mcf than the $3/Mcf-plus strike price of hedges most producers bought, the Commodity Insights upstream analysts said.

The banks that sold the contracts — most frequently, swaps — have to make up the difference between the strike price and the lower NYMEX price.

Prices are expected to move higher in 2024, and gas drillers are still locking in price protection, analysts Travis Williams and Thomas Wilson said in their report on oil and gas hedging through the second quarter of 2023.

"With the 2024 strip averaging $3.58/Mcf by the end of the second quarter, there was an uptick in hedging activity to 24% of forecast production," the analysts said. For 2024, the gas group has 30% of production hedged at $3.56/Mcf, the Sept. 21 report said.

The NYMEX contract had a Sept. 25 preliminary settlement price of $2.639/MMBtu for the October contract, which is set to roll off the board. The succeeding November contract had a preliminary settlement of $2.906/MMBtu on Sept. 25.

"We believe that these elevated prices could continue to entice operators to lock in hedges for 2024, as their hedges have proven beneficial to the group, similar to the second quarter, when realized derivatives bolstered cash flow," the analysts said.

Seven of the nine large North American gas-focused E&Ps added 2024 natural gas hedges by the end of the second quarter, the note said, with five of the nine adding to their 2025 hedge portfolios. Still, gas producers are hedging less than they have in the past, according to Commodity Insights data.

"The large North American gas-focused E&P peer group remained markedly underhedged at 50% versus the five-year median of 69%," Commodity Insights said.

Among the larger group of oil and gas independents, a higher percentage of gas production was hedged compared to crude oil, the researchers said, with fewer gas hedges for 2023 and 2024 than the historical trend.

"Companies continued to hold off on adding meaningful new hedge positions for 2023," the upstream analysts said.

Marcellus Shale driller CNX Resources Corp. has more of its second-half production hedged than any other company in its peer group, with 80% hedged at an average price of $3.04/Mcf. With the lowest percentage of the group, West Virginia operator Antero Resources Corp. had the least amount of production hedged for 2023, 4% at $2.42/Mcf.

[croasdalelfc] 27/9/2023 06:14

Btw the estimated number of non producing abandoned and sometimes plugged US wells is 3 million ( yes 3 million!) and producing is a further 1 million Out of those producing - more than 50% produce less than 50boepd and 1/3rd less than 25 boepd

[croasdalelfc] 27/9/2023 06:04

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 12:23

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 11:37

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 11:30

How do you know they are buys?

[cassini] 26/9/2023 11:28

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 11:04

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

[lomand01] 26/9/2023 08:14

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 06:59

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 06:55

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

[lord gnome] 26/9/2023 06:18

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 06:07

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 06:05

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 03:36

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?