Diversified Energy Share Discussion Threads

[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.

[asp5] 02/11/2023 10:00

Lab, I disgaree with your two main assertions.

1) "more focus on complex derivative trading". Please refer to my post 6004 where I address this point. Furthermore look at the FY 2016 report (pre IPO), p47 under the section "commodity risk". The last para clearly states, "DGO’s normal policy is to .....keep options and swaps in place for 12-24 months in advance to minimize commodity risk and create stabilized and predictable cash flow".

DEC has followed and continues to follow a highly consistent, transparent & steady strategy as regards hedging. I accept the accounting around this topic is not simple, however the volume of hedges has essentially increased to match the increase in cashflow DEC generates (this is good) as per its business model. Complexity has remained the same.


2) "Remember Long life, low decline?" We still have them. In every corporate presentation since IPO including the latest from May DEC confirm this. On p3 DEC describe what their business model is focused on, "Optimising long-life, low-decline producing assets". Can anyone name a single other gas producer in the US market with a lower decline rate than DEC? My post 6042 tried to clarify my understanding of this topic, so will not repeat myself.

Good luck all & DYOR.

[cassini] 01/11/2023 16:21

Back in, albeit very modestly.

[action] 01/11/2023 14:48

Time to buy when hits 62p

[1knocker] 01/11/2023 12:42

There are always buyers and sellers, whatever the price.
Have you ever come across a publicly traded share with any significant number of shares in issue where the response to a modest buy order was 'Sorry, none to be had. We just can't get hold of any shares to fill your, or anyone else's, order'?

[stevensupertrader] 01/11/2023 12:05

I like to know too? Unless those shareholders throw in their towels 😊