Diversified Energy Share Discussion Threads

[lab305] 04/10/2023 16:39

You can get over 6% without risk so why would anyone invest in shares paying anywhere south of that. This one however pays somewhere near 18% at this level + if it is found that there was nothing nefarious in the departure of the CFO the share price will bounce markedly. On that risk I just bought 54k shares back at a fraction over 66p.

[aleman] 04/10/2023 16:10

AIM100 went through a significant milestone today. The fall since its 2021 high is now 50.3%. Lots of things are being dumped in the flight from risk to safety. Some will turn out to be justified. Some won't. Time will tell.

[drk1] 04/10/2023 16:04

Somewhat ironically the Motley Fool has just published an article under the header "Two FTSE 250 income stocks flying under the radar" which goes on to say..........."But income hunters might be surprised to learn that over 50 FTSE 250 shares currently yield over 6% — led by Diversified Energy with a whopping 18.36% trailing yield.
As I’m already overweight in energy shares, I’ve skipped over DEC in favour of specialist mortgage lender OSB Group (LSE: OSB)"

Under the radar - understatment of the year thus far! ;-)

[oneillshaun] 04/10/2023 15:55

Wow absolute free fall

[justiceforthemany] 04/10/2023 15:49

DEC = 'the best total value in the sector'!
Malcolm Graham Wood Oil&Gas analyst 2023

Does he know anything at all?

[justiceforthemany] 04/10/2023 15:38

Malcy on the company just a few months ago. Is he completely clueless or in the pay?

Yet again DEC deliver a first rate quarterly update with record production and reduced costs which boosted margins, a truly incredible performance under the current industry conditions. The cash margins, now at a stunning 54% were achieved partly due to hedging and also the greater liquids exposure.

The hedging policy which achieved this, hedged over 85% in 2023, approximately 80% in 2024 and approximately 70% in 2025 of natural gas production, and DEC continue to ‘opportunistically add to our hedge portfolio where the price curve is higher’ which is highly satisfactory.

The DEC process continues, the most recent acquisition has, as is always the case, settled in very well and I expect more of the same if not even more and indeed if the CEO’s comments above are to be taken at face value, and I would, there may be more, diverse ways of value enhancement, something DEC has proved to be expert at in the past.

With the increased 1Q dividend the shares remain amongst the best payer’s in the sector and with its yield of 15% as I have said time and again they represent on a capital and total return basis pretty much the best total value in the sector.

[johnhemming] 04/10/2023 15:21

>To me, it looks like it extinguishes DECs business case.
This is the plugging issue which has been discussed at great length. DEC are actually benefiting from the fact that they have a plugging arm which is dealing with orphaned wells.

In any event this is not news. Any news was in the Inflation Reduction Act. (and this "news" was July 2023.)

[aleman] 04/10/2023 15:19

Still going up. $3.13. Medium futures have been weakish through August but are back to one month highs after a couple of good days.

[my retirement fund] 04/10/2023 15:18

This is to protect taxpayers from footing the cost of decommissioning abandoned wells, the cost and prevention of the pollution from older end of life or empty wells, and stopping current operators from abandoning or selling on costly end life ir empty well liabilities. To me, it looks like it extinguishes DECs business case.

[fordtin] 04/10/2023 15:04

2wild - I sort of agree, but would prefer it if they’d exponentially increase the daily spend on buybacks as the share price drops. Imo they should be buying back over a million shares per day at this price.

Unless they know who the seller is. In which case, holding back until the seller gets down to their last 10 or 20 million shares, before seriously cranking up the daily spend, might be a cheaper way to achieve the best long-term shareholder value.

[johnhemming] 04/10/2023 14:58

@My Retirement Fund

I presume you mean this proposed rule:



Which seems to me to be implementing the provisions of the Inflation Reduction Act which have been around for some time now.

[2wild] 04/10/2023 14:38

As they issued millions of shares at 105 P several months ago, as far as I am concerned. They can keep Quiet and just keep buying back a few 100 K everyday at discounts of over 30%., for 8 weeks or so until we get the next Trading updates and dividend declaration.

[my retirement fund] 04/10/2023 14:28

You guys all had sight of that US Department of Interiors, "Bureau of Land Managemet" onshore oil and gas leasing rule consultation that closed on 22nd September? Nope, I thought not! Big State department like that bound to be pretty leaky, no? Not exactly the federal reserve, are they when it comes to connected party industry secrets. And what of DEC, some unheard of London listed AIM listed crud that no one the otherside of the Atlantic has heard of. Another AIM debacle! When in gods name, will they do something about the AIM grifter market, how many disasters will it take ?

[action] 04/10/2023 14:27

Is this another crypto company, I wonder?

[johnhemming] 04/10/2023 14:13

I have tracked the Methane Fee emission in detail and DEC have gradually improved their handling so that the payments if any will be negligable but probably zero.

[marksp2011] 04/10/2023 14:09

Look at UK small caps
The ITs all have a similar chart
A steady decline that has been steepening.

[stevensupertrader] 04/10/2023 14:07

Now no buyer is looking at yield anymore if they are buying - it doesn’t make anymore sense .

[stevensupertrader] 04/10/2023 14:05

Definitely heading that direction - you can see from the last week and this week share price movement and direction without any DEC RNS soon

[timbarker] 04/10/2023 14:01

Yeah, I got that reversed! But note it did subsequently drop to 56p soon after before recovering. Seems it may be heading back there!

[lab305] 04/10/2023 13:53

Their stock opened with £0.65 in its Feb 6, 2017 IPO.

[action] 04/10/2023 13:48

Is it positive FOR DEC or negative?

[timbarker] 04/10/2023 13:33

Seem to remember it was 56p at IPO in 2017

[stevensupertrader] 04/10/2023 13:33

1knocker - so you chicken out at 70p then !!!
I thought you would go for it and prove that you are a man of honour and meant what you said. Easy say than done as the saying goes .

[garycook] 04/10/2023 13:26

What is the lowest DEC as trading at in the past ?

[erocnelg] 04/10/2023 13:22

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