Diversified Energy Share Discussion Threads

[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.

[marksp2011] 02/11/2023 19:48

Which Gove bonds did you buy at over 6%

[lab305] 02/11/2023 19:03

90p and 72p. I already invested all of the proceeds. The first lot went to gov bonds at over 6%. The recent sale I invested in a share that is up £14k over 5 days. I certainty won't be earning 18% more like 7% but I will sleep at nights .As I said after 6 years invested my patience snapped and I wish I had been braver and sold the lot at 90p. I reinvested both because I saw an opportunity and to stop me weakening and reinvesting back in Dec. 15 months of decline may be finally over for you holders so good luck with them. By the way the top was 144p and they were there for a few days in August 2022. Hindsight eh !

[tag57] 02/11/2023 17:53

Mark, I think he sold half a few months ago and the rest last week.

[marksp2011] 02/11/2023 17:50

When did LAB sell?

[laurence llewelyn binliner] 02/11/2023 17:02

+5 pence that is more like it, and no buybacks either, a tidy ride back to break even, but happy to hold and mop up the dividends.. :o)

[2wild] 02/11/2023 17:00

Closed up 9.5% from yesterday's low point. Hopefully, the bottom is in as results in 2 weeks and Ex Dib in 4.

[cassini] 02/11/2023 16:38

Back in completely now.

Whether that's a good move only time will tell but I've shaved a few pennies off my average price, although I'm still well underwater.

[johnhemming] 02/11/2023 11:17

@bluemango I think the reason for the increase today is the link to yields. Quite a lot of DEC is held through income funds which move in line with yields more generally. (OEICs sell/buy the underlying security)

[11_percent] 02/11/2023 10:43

Bought a few.....divi just too good.

[bluemango] 02/11/2023 10:41

Recovery since US interest rates were held, suggests market concern was mainly focused on the debt - as suspected.