Diversified Energy Share Discussion Threads

[this_is_me] 17/11/2023 14:14

1 million shares is hardly a lot. They would need to do that regularly to make a big difference.

I don't see why it can't double from here, particularly if the buy backs continue.

[mattybuoy] 17/11/2023 12:07

This has to re-rate once it arrives on the NYSE. I wouldn't expect anything too drastic but hopefully 100p equivalant can be achieved again. That would equate to about $18 post-split.

[aleman] 17/11/2023 10:11

I notice volume picked up as shares rose yesterday after 2pm. Could US investors be starting to buy the stock ahead of the US listing? Any shares bought will convert and be freely tradable in New York in a few weeks. Why wait until then?

[fordtin] 17/11/2023 08:10

Re “the Board and management consulted with their advisors, along with various US and UK institutional investors”

Would the “various US and UK institutional investors” have been restricted from trading in DEC during this consultation period?
If so, would DEC also have been restricted from buyback’s during the consultation period?

It might explain the withdrawal from buybacks between 30th October and the listing announcement.

[laurence llewelyn binliner] 17/11/2023 07:14

1M shares bought back at 72 pence yesterday, I was not expecting the BB to be continued following the US listing announcement, but should that keep going, it can only add to the EPS/DPS and share price post admission to the NYSE... :o)

[justiceforthemany] 16/11/2023 22:28

Agree 100%, share price should rise; lots of demand from US investors for a 20% yield!

[justiceforthemany] 16/11/2023 22:27

Diversified has announced that it intends to seek an additional listing of the Company’s Ordinary Shares on the New York Stock Exchange (the “NYSE”) (the “US Listing”). No new Ordinary Shares are being offered or sold in connection with the US Listing, and there will be no change in the total issued share capital of the Company following the US Listing.

I have put the entire DEC announcement in below as it contains a great deal of technical listing data. But the key point is that readers know that the previous plan to list in the US was pulled after company brokers detected a worry that such a listing would inevitably come with a raise that would affect demand for the shares and thus it is crucial that this listing is going ahead with no raise attached to it.

I have spoken to Rusty Hutson about this and he believes, as do I, that it will significantly advantage DEC for it to be listed in the USA. The shares will be fungible and accordingly make it attractive to hold the shares in either jurisdiction. More importantly I think that US investors will like this and I would not be surprised to see a decent amount of demand drag on the shares in a westerly direction.

[valuehurts] 16/11/2023 22:15

As a UK taxpayer you will always have 30 percent withholding tax unless you have a w8Ben in place which reduces the withholding to 15 percent. There are no withholding taxes if you hold a US position in a SIPP.

[marksp2011] 16/11/2023 13:15

The problem with share consolidations is that it changes the risk/reward ratio for shorters - I can't think of a situation where a consolidation when the share price is weak has been a good plan

[carcosa] 16/11/2023 13:15

Some readers may wish to avail themselves of the 274 page Form 37-F (basically equivalent to a UK admission document) which is available on DEC's and SEC's websites.

Some interesting items include discussion regarding the BLM Proposed Onshore Oil and Gas Leasing Rule, Inflation Reduction Act associated costs from 2024, the SEC’s proposed climate rule (now that we are going to listed in the US).

Also interesting to note that in a high price environment they may lose the ability to process natural gas. Delays in the progress of additional third party processing infrastructure is unwanted.

Anyway, these types of declarations discuss every risk, however unlikely, in some detail but there is certainly a voluminous amount of info to plow through for those that want to DYOR.

[marksp2011] 16/11/2023 13:13

alotto16 Nov '23 - 08:03 - 6222 of 6245

Laurence, reg. the CFO, DEC lied when they said the CFO left to pursue other career opportunities. He did not have another role to move into.

I worked for years for a large US tech. First week of january there were swathes of sales types leaving to pursue career opportunities elsewhere. i don't think any of them were expecting to be looking for that opportunity until the full year close on 31 December.

[plutonian] 16/11/2023 12:55

Aleman, that is the plan & advice from HMRC. I guess it will be dealt with in the Autumn Finance Bill 2023.

[bountyhunter] 16/11/2023 12:53

Is there any dividend tax payable for NYSE holdings held by UK citizens directly?
If not I may switch my holding to the NYSE when listed!

[tonytyke2] 16/11/2023 12:48

GaryCook, I think it was because DEC was only registered/listed in London that some banks/brokers charged withholding tax, Halifax charged 30%.

Perhaps if the main listing is now going to be on the NYSE, then perhaps these banks/brokers are going to have to re-think their approach to this.

[aleman] 16/11/2023 12:41

Thanks, Plutonian - but will that get passed before January 1st?

[bountyhunter] 16/11/2023 12:38

Incidentally there is already a USOTC listing so DEC is not out of reach for US investors currently.
...at the end of the header

Of course a full listing should attract a lot more interest however, especially given the yield, so I think it's a good move although the market seems to be unimpressed so far. On the consolidation I would have preferred a 1:5 or 1:10 than a 1:20.

[wildchild] 16/11/2023 12:37

GARYCOOK , I think its because IG is a spreadbetting company where you buy the financial instrument, (no stamp duty), and the others are brokers where you buy the actual shares.

[garycook] 16/11/2023 12:27

Cannot understand why DEC are subject to Stamp Duty on purchase of shares in the UK, when DEC are registered in the US HL,and ii charge, but IG do not charge. Make,s you wonder who is correct and who is wrong on this matter ?

[plutonian] 16/11/2023 12:26

It isn't...

Policy paper
Stamp Taxes on Shares — Removal of 1.5% charge on issues and transfers integral to capital raising
Published 14 September 2023

[aleman] 16/11/2023 12:12

Certificated UK shareholders will see old share cetificates become obsolete. They will have the opportunity to swap for new electronic DIs, like other Crest holders, or have new certificates issued which can then be traded in London or New York. (But something about a possible 1.5% Stamp Duty Reserve Tax. This used to be charged on non-UK companies traded in the UK and looks like coming back due to our exit from Europe.)



I've found this about 1.5% SDRT - to be reinstated Jan 1st 2024, er, unless it isn't?

[astreix] 16/11/2023 11:56

Does anyone know if existing investors will have the option to swap their UK shares with the newly listed US shares (presumbaly denominated in USD)?

[lab305] 16/11/2023 11:54

A complex company to understand has just become more complex. Consolidation of the shares is a bad thing as cheap shares are much more easily traded. Another flip flop just like the 2 buyback schemes. Remember this......
“2023, of course, we're already three months in but just, it will be a transformational year for Diversified. I will make you that commitment. It will not, it will not be a quiet year by any stretch of imagination.

In fact, you know, I'm 100% focused on three year strategic plan that will give investors comfort around sustainability of cash flows, dividend we’re highly focused on that. Some of them, the main initiatives of 2023, obviously the US listing is of most important. It will get done, It will get done.

That's number one, The market is very active right now, Lots of chatter, lots of stuff, plus calls, lots of things going on, We'll be focused on strategic opportunities, to acquire assets to look at ways to as we talked about earlier, enhance production, but also scale up in the regions we operate today and there could be opportunities to merge and to do things that is a little bit outside the box of what we typically will do.

But there's everything is on the table this year, we believe that the opportunity set is large. The other thing that we were going to really focus on heavily in 2023, is finding ways to get that value from our undeveloped assets. So we're having conversations with multiple parties about ways to joint venture to, to find ways to, to extract that value out of the ???????.

So, we will see opportunities there and there will be ways to to do that and announcements coming For the analysts, you're going to be busy with us. There's going to be lots of activity that you're going to have to keep up with. For our investors. It's going to be a big ride this year, an enjoyable one.”

The simple reason of why the share price is where it is is loss of trust and believeability . I have been very unhappy since the snap placing and stupidly held on thinking I would believe the above statement and give Rusty a chance .As the year closes none of the predictions materialised , consequently I sold after 6 years with a very large holding. Looking at today's news I'm not sorry.

[laurence llewelyn binliner] 16/11/2023 10:53

5th/11th December for trading in the US, so this has been in the making for some time around the board table..

Exciting times for shareholders, we will see what/if the demand is there as per company research and feedback (or wishful thinking) but it is only current shareholders who can fill the demand, and that can only be positive for the share price pre/post consolidation..