Diversified Energy Share Discussion Threads

[cassini] 05/10/2023 14:14

Looks like someone selling at 67p and limiting any upside at the moment.

[tom111] 05/10/2023 13:52

Just shows how much he knows,didnt even see the tax paid on the invoice when purchased lol

[mondex] 05/10/2023 13:43

Excerpt from Goehring & Rozenwacj report.

Full report at - hxxps://blog.gorozen.com/blog/natural-gas-markets?utm_campaign=Weekly%20Blog%20Notification&utm_medium=email&_hsmi=277112110&utm_content=277112110&utm_source=hs_email

Natural Gas Markets on the Verge
10/05/2023

The article below is an excerpt from our Q2 2023 commentary.

In our view, natural gas prices are reaching a turning point. Gas spiked to decade highs last spring following Russia’s invasion of Ukraine, only to fall back on milder-than-normal winter weather. Instead of running out of gas, traders worried about running out of storage as prices collapsed to near-all-time lows.

During market panic or euphoria, investors make the mistake of linearly extrapolating current trends. As a result, they fail to see the ground shifting underneath them and miss out on excellent opportunities. Natural gas represents a classic buying opportunity, and we believe investors are again focused on all the wrong issues.

Only several weeks ago, we heard many analysts openly question whether the US would run out of natural gas storage before the end of the injection season. Such an event would create the dreaded “gas on gas competition,” potentially driving prices to zero (or below). With the injection season half complete, these concerns were unfounded. Inventories started the year in line with seasonal averages. Extremely mild weather resulted in nearly 5% fewer heating degree days between January and April, significantly reducing heating demand. Inventories grew to 382 bcf above seasonal averages by April. Mild winter weather was followed by a mild start to summer. Cooling degree days in April, May, and June were nearly 30% below the five-year average, reducing air conditioning demand. Despite the milder than-normal start to summer, US inventories did not grow relative to seasonal averages. By mid-June, inventories remained 385 bcf above average. As the weather turned warmer in July, inventories have started to come down and currently stand at 320 bcf above average, the lowest level since February. Notably, July was 3% milder than average, suggesting the market would be in an even more significant deficit had temperatures been average. Liquefied Natural Gas (LNG) exports help explain why US inventories declined relative to seasonal averages despite mild weather. LNG demand reached a record of 12.5 bcf/d in May as Freeport returned online after a damaging fire left it inoperable for over a year. Based upon our analysis, the likelihood of full storage by the end of the injection season in the fall is very low; gas prices will likely rally from here.

Over the next two years, an additional six billion cubic feet of LNG exports will come online at Golden Pass, Plaquemines, and Corpus Christi. Another 1.6 bcf/d is due to come online at Port Arthur in 2027. Where will these facilities source their gas?

[adg] 05/10/2023 13:29

Interesting that volume isn’t anything to write home about is it.
Have almost 30k and may double up
Watching with interest as I feel this could jump very sharply

[johnhemming] 05/10/2023 13:04

The nub of the issue with plugging is that DEC has the long term revenue to fund plugging and is plugging as time goes.

[scrwal] 05/10/2023 12:58

The important thing from the BLM Bonding factsheet is "Reduce the nonoperational period after which a well is considered idled to 4 years" and how this affects DEC in the shorter term.

[scrwal] 05/10/2023 12:53

MRF
DEC is a FTSE 250 company not an AIM listed one.

[bluemango] 05/10/2023 12:42

In case there's any confusion, DEC is on the main market and has been since 2020.

Nice to see the 'no known reason for fall' statement that I had been suggesting was needed.

[langland] 05/10/2023 12:27

My Retirement Fund5 Oct '23 - 11:24 - 5795 of 5797
0 0 0
How can a company not even mention this? Welcome to AIM, where disclosure is often decrecionary or unnecessary. Why do you think DEC chose to list on the AIM market in London?

As far as I can see, DEC is a constituent of the FTSE 250 not AIM.

[johnhemming] 05/10/2023 11:46

>however I can't really see how DEC will afford the bond
If the new requirements apply retrospectively (which is not made clear) then DEC would probably need four bonds at a price of USD500K each for four states.

I don't think that USD2Million would really matter. They have already done this to some extent anyway.

[johnhemming] 05/10/2023 11:44

The issue about plugging is not really news.

To me it looks like there may indeed be a broader question of a sell off in Open Ended Income Funds.

If that is the case then nothing much can be done about that and we will just have to wait for it to settle down.

[my retirement fund] 05/10/2023 11:24

How can a company not even mention this? Welcome to AIM, where disclosure is often decrecionary or unnecessary. Why do you think DEC chose to list on the AIM market in London?

[lomand01] 05/10/2023 11:06

LLB..good buy. By my estimates the pipelinea alone are worth 15p, the non core assets at least another 15p and the infill drilling probably another 15p. You are paying pennies for the PDP...happy retirement!!

[aleman] 05/10/2023 10:45

Only 12% of gas production was from federal lands in 2021 and most of it does not look to be DEC territory - being mostly New Mexico, Colorado and NW states. Does the bonding even affect DEC? It might even be beneficial if it raises costs for competition. How can the company not even mention this in today's comments? Is it not affected at all? Maybe there's no need to mention because there does not seem to be anything new. It's been in the public domain for months.

[laurence llewelyn binliner] 05/10/2023 10:31

#1Knocker, hit my target holding yesterday, not a bad day to buy either, now just let it ride for a decade and hoover up the dividends.. :o), OnG is not going to go run out of demand in my lifetime for sure..

[my retirement fund] 05/10/2023 10:23

Hello Johnhemming, well it certainly may not be news to you as you claim, however I can't really see how DEC will afford the bond requirements let alone the compliance that will be introduced from the Spring. This will place the American company into immediate Chapter 11 and the London listing will be suspended. I cannot see any other outcome.As you say not news to you, but I have to say I've had a look on the DEC thread and can see no sensible discussion about the changes what so ever.https://www.blm.gov/sites/default/files/docs/2023-07/BLM-Proposed-Onshore-Oil-and-Gas-Leasing-Rule-Bonding-Factsheet.pdfhttps://www.blm.gov/sites/default/files/docs/2023-07/BLM-Proposed-Onshore-Oil-and-Gas-Leasing-Rule-Factsheet.pdf

[lab305] 05/10/2023 10:20

A million a day would be more the mark Mark.

[1knocker] 05/10/2023 10:19

I am surprised that the share price is not up a bit on the RNS.
The 'Not aware of any company specific reasons ...' statement is unequivocal, and to my mind very reassuring.
I am also happy that the proposed US listing has been abandoned. It would have been a drain on management time we can manage without.
I bought a few more (for my trading account) this morning.

[marksp2011] 05/10/2023 10:11

There are roughly a billion shares in issue

Buying 350k shares doesn't make a dent unless it tips the balance to move to net buying

If they bought 350k every day for a year it would only take about 9% off the issued share capital.

[tonytyke2] 05/10/2023 09:54

All confirmed well with company, topped up again yesterday and just now. Happy to be sitting on around a 18.5 percent yield now. Good luck to all holders.

[mortal1ty] 05/10/2023 09:32

I think a 40% dividend yield might entice me in. :/

[lab305] 05/10/2023 09:21

Over 20% saved every year ahead on every dollar spent on buybacks whilst shares are around this price.

[laurence llewelyn binliner] 05/10/2023 09:17

#Fordtin - the Tanos deal added - current net production of 101 MMcfepd (76% natural gas), representing a c12% increase vs the Company's December 2022 exit rate net production..

[11_percent] 05/10/2023 09:16

Sp now negative on the day.