Diversified Energy Share Discussion Threads

[croasdalelfc] 04/10/2023 18:54

The 2021 federal Infrastructure Investment and Jobs Act allocated $4.7 billion to plug abandoned oil and gas wells throughout the country. Soon after the legislation was passed, Diversified Energy began acquiring well-plugging companies to take advantage of these federal funds.

[loganair] 04/10/2023 18:22

It seems to me reasonable to say one of the main reasons DEC share price drop is due to whole sale gas prices in the U.S. are at a multi year low.

[tag57] 04/10/2023 18:05

Croas, also depends on how much of Dec’s wells are on federal lands, not sure how much this is, 100%?

[r9505571] 04/10/2023 17:50

Oil down 5% to $86 a barrel

[croasdalelfc] 04/10/2023 17:27

What's the big fuss? hTTps:www.blm.gov/sites/default/files/docs/2023-08/BLM_OilandGas_Virtual-Public-Meeting1_Presenation_508.pdf

[croasdalelfc] 04/10/2023 17:21

If this is the big fuss then it's a storm in a tea cup: hTTps:www.blm.gov/sites/default/files/docs/2023-08/BLM_OilandGas_Virtual-Public-Meeting1_Presenation_508.pdfSee changes in fees and bonds . Nowhere does it say retrospectively. And even if retrospectively it should only cost a few million dollars, most of that via refundable bonds.

[mondex] 04/10/2023 17:03

Buying back shares in a heavily declining market is not a wise thing for a company to do unless it is cash reach with deep pockets & it knows its business model & the market for its products is sound.

From Rystad Energy:

Rystad Energy: New natural gas production is needed to meet demand
Published by Emily Thomas, Deputy Editor
Wednesday, 04 October 2023 09:13

Global gas demand is projected to rise in the next decade, thus influencing a 12.5% surge in production between 2023 and 2030. However, Rystad Energy forecasts that even in scenarios of 1.9 – 2.5°C warming, with rapid growth in renewable energy sources, the current set of existing gas fields will not meet global demand, requiring rapid growth in unconventional gas supply. Gas-rich geographies such as the Middle East, with basins such as Rub al Khali, will play an essential role in bridging that gap, providing an estimated 20 million tpy of LNG by 2040.

The production of unconventional gas, such as shale, has experienced rapid growth in recent years due to technological advancements and reduced lead times. This rapid growth has driven the global share of unconventional gas supply in global gas production at a pace that has previously required significantly more time to achieve, escalating from 4% in 2000 to 12% in 2022 and 35% in 2023.

The influx of affordable gas from unconventional sources and ongoing supply from exporting countries like Russia has tempered exploration efforts for conventional gas. This is evident in that nearly 70% of discovered conventional volumes have yet to receive sanctions for development, showcasing the hurdles and reluctance to develop some of these finds.

Historically, Russia and the Middle East have dominated conventional gas production. This is not slowing down anytime soon, with Middle Eastern countries ramping up gas volumes as part of their new energy transition strategies.

“Gas is increasingly considered a crucial stepping stone to a sustainable future. With reduced emissions and regional energy security goals aligned, gas is poised to play a pivotal role in the global energy transition. The Middle East is a key driver of this shift, slowly moving into developing and increasing gas volumes as part of their new energy transition strategies,” says Aatisha Mahajan, Vice President of Exploration with Rystad Energy.

[justiceforthemany] 04/10/2023 16:39

No with-holding tax in a SIPP

[lord gnome] 04/10/2023 16:28

I doubt it oneillshaun. BOTs don't do RNSs. I reckon most of the volume has been BOTs trading amongst themselves. There seem to have been just a few chunky real trades today.

[lab305] 04/10/2023 16:27

18.4% dividend per year after deduction of witholding tax and slight premium on currency exchange.

[oneillshaun] 04/10/2023 16:23

16m volume I am assuming we will see a few RNS statements this week

[marksp2011] 04/10/2023 16:23

Good manYou wanted a buy back and now you have one

[1knocker] 04/10/2023 16:03

stephenst, if you bother to read accurately what folks post here you would have seen that I have stated all year that I have a full holding of DEC and consider it prudent to stick to limited weightings in ANY stock. You will also see hat I have prefaced every post expressing the view that a price presents a buying opportunity IMO with a statement that i will not myself be buying because I am up to my self imposed portfolio limit.

My limit order at 70 was placed on the basis that it was unlikely to trigger, save on some exceptional end of day blip. In that event, I would have been looking to sell the additional shares for a trading profit.

You seem a very disgruntled and querulous fellow. That's fair enough; it takes all sorts to make a world. But if your posts are to be of any value at all as commentaries upon observations made by others, you do need first to read accurately and to understand those observations.

[justiceforthemany] 04/10/2023 15:53

So are you calling the oil analyst Malcolm Graham Wood who has been bullish on this stock clueless?
22% yield now actually.

[1knocker] 04/10/2023 15:40

If the Motley Fool is bullish DEC we really do have something to worry about!

[lab305] 04/10/2023 15:39

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 15:10

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 15:04

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 14:55

Wow absolute free fall

[justiceforthemany] 04/10/2023 14:49

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 14:38

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 14:21

>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 14:19

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 14:18

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 14:04

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.