Diversified Energy Share Discussion Threads

[bluemango] 07/11/2023 19:54

#6106 "or stays the same it drop" (sic)

LOL!

To the contrary; if it even just stays the same, there will not only be enormous relief and a halt to the decline, but also rather more buyers.

[oneillshaun] 07/11/2023 19:12

If they drop it or stays the same it drop to 60p/50p

[laurence llewelyn binliner] 07/11/2023 16:09

Very much looking forward to the next set of results here 15th, to see if the company continue the progressive dividend policy and 4 equal payouts followed by a raise which we have seen since 2019..

4 * 3.50 cents
4 * 4.0 cents
4 * 4.25 cents
4 * 4.375 cents
4.50 cents next or a hold..?

[aleman] 07/11/2023 14:13

There's a map of gas extraction on Federal Lands here. Again, I think there is little of DEC's property covered by the new (Inflation Reduction Act) regulations unless anyone can provide evidence to the contrary.

[johnhemming] 07/11/2023 12:07

@carcosa which particular link are you referring to? Bonding has been discussed on this thread a few weeks ago as well.

[aleman] 07/11/2023 10:44

I think there was a link to a federal lands map earlier in the thread that showed little to no overlap with DEC properties.

[carcosa] 07/11/2023 10:41

JH, The plugging issue is directly addressed in the link I provided. And am pretty sure the $25k number comes directly from DEC!

[carcosa] 07/11/2023 10:39

Federal land ownership is mentioned in their Sustainability report but clarity on the precise acreage would be helpful.

Going forward, if BLM raise royalty rates then there is perhaps a mechanism where private landowners can do the same. In 2022 royalties of over $0.5b was paid.

Perhaps worth querying at the forthcoming investors meeting.

[johnhemming] 07/11/2023 10:36

@aleman I think the broader issue of plugging is an issue on oil and gas more generally in the USA. It is not only plugging on federal lands, but also plugging which is subject to state regulation.

What some states are doing is requiring bonding on existing wells when they are sold. The BLM proposals have a figure for multiple wells in a state.

In the end, however, DEC are getting on with plugging wells.

[aleman] 07/11/2023 10:16

carcosa
7 Nov '23 - 10:09 - 6096 of 6097

There has not been much, if any, discussion regarding the BLM Proposed Onshore Oil and Gas Leasing Rule which would affect DEC.

Isn't that legislation that doesn't affect DEC because it (mostly?) does not operate on federal lands leased by government?

[fordtin] 07/11/2023 10:10

Not flagged on some platforms because it's non regulatory;


07/11/2023 7:00am
RNS Non-Regulatory

TIDMDEC

Diversified Energy Company PLC

07 November 2023

7 November 2023

Diversified Energy Company PLC

("Diversified" or the "Company")

Notice of Trading Statement Timing

Diversified Energy Company PLC (LSE: DEC) is pleased to announce that the Company will publish a trading statement with respect for the three months ended 30 September 2023 on Wednesday, 15 November 2023. Diversified will also publish a supplementary corporate presentation to accompany the trading statement on its website at ir.div.energy/presentations .

[carcosa] 07/11/2023 10:09

There has not been much, if any, discussion regarding the BLM Proposed Onshore Oil and Gas Leasing Rule which would affect DEC. It would change fees, rents and royalties to reflect provisions from the Inflation Reduction Act. Many of it's attributes relate to new drilling but there is plenty there that would adversely affect DEC

Broadly speaking it:

- Raising royalty rates: The rule proposes raising onshore royalty rates from 12.5% to 18.75%

- Increasing minimum bid amounts: Minimum bids for parcels would increase from $2 per acre to $10 per acre. This makes it more expensive for companies to acquire new leases. Not something DEC

- Tighter bonding requirements: Companies would need to put up higher bonds for reclamation.

- Stricter approvals: The rule would give the Interior Department more discretion to reject drilling permit applications on environmental or cultural grounds.


However it seems to have run into some resistance ahead of the House passage of the bill, the chamber adopted a wave of Republican amendments this month, one amendment would prohibit the raising of oil and gas royalty rates for leased onshore acres to 16.67% from 12.5%, as mandated by the IRA, while another would restrain the department's ability to lessen the number of oil and gas leases issued.

Whether any of this will come to fruition remains to be seen.

hxxps://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/110323-us-house-votes-to-slash-epa-budget-support-oil-gas-output-on-public-lands

hxxps://www.durangoherald.com/articles/new-bill-would-prevent-rule-from-increasing-the-costs-of-oil-and-gas-production/

[t 34] 07/11/2023 09:56

P/E of dec must be below 2.

[renewed1] 07/11/2023 09:38

I assume DEC's hands are tied to a certain extent regarding the production they must hedge by the terms of the loans.Presumably when the first set of loans have been payed off (2 more years?) they will have more flexability in hedging the remaining gas.

Personaly I am attributing current price to weak woke investment managers frightened by stop oil campaign. Consequently providing a great opportunity.Im backing my judgement and have far more than a modest holding!!! But have to admit having everything crossed!!

[2wild] 05/11/2023 17:35

I also own NQ2, purchaseround 11 months ago, at 94p on 11.7% Gross RedemptionYield Tax free in my Interactive investor Isa..

On Friday the UK 10 year guilt close below 4.3% and the 5 year below 4.1%. Reversing months of rising bond yields.

[1knocker] 05/11/2023 14:49

Divi increase or not, those who have bought their holdings in the 60s and 70s should be in clover.

[renewed1] 04/11/2023 15:30

Well the Henry hub prices looking good through to end of 2025 DEC should be making good profits...another small divi increase might be on cards in New Year.

[1knocker] 04/11/2023 11:12

I think I got the previous issue of £1 loan notes at about 56p. At that time, the future of Enquest was in the balance, so it was a fairly risky investment. It still has a lot of debt, but the increased O and G prices have stabilised the business.

I recently topped up my holding (rolled over on favourable terms from the previous issue) on the current issue at a bit under 92, for a running return of a touch under10%, with a capital gain of about 9% over the next 4 years to redemption in Oct '27, if all goes well.

[saltaire111] 04/11/2023 10:49

@1knocker - if you don’t mind disclosing… at what price per £1.00 value did you get the Enquest notes for? I’ve looked at them before but I’m not sure I can buy them through the platform I use.

Salty.

[1knocker] 03/11/2023 13:37

I hold the Enquest 9% 2027 notes. I held the previous issue (bought for peanuts when the company looked to be flat on its back and the O&G prices were in the cellar), which the company rolled over into the 2027 notes on very attractive terms.

In the case of both issues, the interest is paid in cash when the company can afford it, otherwise by the issue of additional notes. That happened several times with the old issue, but for the 3 dividends which have fallen due so far in respect of the current issue, cash has bee paid.

i don't say the notes are risk free, but it has done me very nicely so far, both as regards capital appreciation on the original investment and income received. I am a good deal happier than I imagine the ordinary shareholders are!!

The notes are bought and sold 'clean', so no need to worry about the ex div date.

[cassini] 03/11/2023 13:14

Last known buyback was on Friday the 27th October.

Odd, given the price continued to faceplant after that.

Hmmm...

[asp5] 02/11/2023 21:57

On a more positive note .....

A brief mention of DEC by the manager of the Marlborough Multi cap Income Fund (at 28:35). He estimates DEC has ~$500M of value in their undeveloped acreage that they are looking to sell off. He seems to be happy with the sales they have maanged to complete to date.

[cassini] 02/11/2023 19:56

I also bought bonds, sort of, via QUID, which is a sort of very short duration bond ETF that always hovers near, er, a quid.

It pays about 5.8% dividend (monthly?) although there is a 0.35% charge although I don't think you see that, it comes off profits before the divi is paid .

Unlike DEC, it's more of a return OF your money, rather than a return ON your money.

I feel the waters are getting choppy out there.

As for DEC, whether we feel it is justified or not, it took/is taking a right hammering with the threat of rising rates.