Diversified Energy Share Discussion Threads

[johnhemming] 21/11/2023 06:26

From the interview, "we also have four drilled uncompleted wells that came along with that transaction that we are planning on completing and fracking later in December and then being able to produce that gas into a higher gas environment next year"

[mattybuoy] 20/11/2023 23:53

I believe that DEC IPO'ed in London because at that time the primary market for O&G equity in the US was completely closed. No other reason.

Post-split the price should be around $18 or so.

[laurence llewelyn binliner] 20/11/2023 19:12

#John Hemming, exactly, round things up to be divisible by 20 or..

16.11.2023 - expected date for payment (where applicable) of fractional entitlements for ordinary shares 14.12.2023

[marksp2011] 20/11/2023 19:04

Hmmmm20×0.75×1.25=40I think not2/10 for spelling your name correctly

[johnhemming] 20/11/2023 18:49

My understanding about the consolidation is that if you have a number of shares which does not divide by 20 the remainder is sold by the company in the market and you are provided with cash.

I decided to buy some more shares to take my total up to multiples of 20.

DYOR

[lord gnome] 20/11/2023 18:37

A good interview with Rusty on Directors Talk. I marvel at how he manages to stay patient sometimes. Reading between the lines he is obviously peed off with the London market and the valuation of his company. Our market is dead from the neck up. Hopefully the US listing will help to solve that issue.
With a one for twenty consolidation giving us a current US share price of around 35-40 dollars, if he can get the company up to fair value then we could be looking at a real (for us) heavyweight valuation of anywhere north of 80 dollars. If nothing else, it will get shot of penny share punters.

[justiceforthemany] 20/11/2023 17:29

Yet another FTSE stock trading at less than half its true value

[justiceforthemany] 20/11/2023 17:29

Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) (DEC) is delivering consistent and reliable results and its shares are at a substantial discount compared to the oil firm’s American peers, according to analysts at stockbroking firm Cavendish.

In a note, following DEC’s most recent financial results released last week, analyst James McCormack retained a 150p price target – suggesting around 100% upside to the share’s current price of 73.45p.

McCormack highlighted a potential pathway to DEC securing a more competitive valuation as it heads for a stock market listing in New York.

“The board believes that the US listing will raise the group’s profile in the US, broaden the company’s potential investor base and increase its research coverage,” the analyst said.

“The dual list will align DEC with its US natural gas focussed peers and provide access to a larger pool of energy-specific investors, in turn providing an opportunity for DEC to narrow the valuation gap to its peers.”

McCormack added: “DEC trading at a c2.0x lower multiple to its US peers highlights the current dislocation and structural issues in the UK market, which are particularly prevalent in the small-cap sector … a listing on the NYSE could provide an opportunity for DEC to narrow this valuation gap.”

[fordtin] 20/11/2023 14:38

Remind me why we want a US listing. As soon as the Yanks wake up the share price takes a nose dive!

[fred177] 20/11/2023 14:09

Wilmherk exactly same as my experience

[2wild] 20/11/2023 03:19

I used to hold my shares with Halifax, The best thing I ever did was Transfer my dealing Account too interactive investor. The whole procedure cost Nothing and All shares were showing in my new account after just 8 working days. Soon afterwards, I transferred my much larger Isa as well. The cache arrived in my new account a few days later and the shares again only took 8 days to appear. Everything is better with interactive investor far lower commissions, only399p after 2 Commission 3 trades per month. Cash withdrawals take less than one working day. Dividemds paid on actual payment date usually by 8:00AM. Regular monthly commission free buys on Minimum 25 pound per stock. up-to 25 shares & ETFs, per account, Per month.

Now hold all my DEC in ii SIPP And get the full dividend automatically with 0 withholding tax.

[drradcliffe] 19/11/2023 18:22

@wilmwherk it's unfortunate because if it's a US stock that is not listed on London Lloyds/Halifax take 15% withholding tax (assuming you've signed the W8-BEN) but if it's a UK listed US stock they take 30%. This means a stock like Somero = 30% withholding; Microsoft = 15% withholding within an ISA. Obviously I'm hoping DEC will de-list from London. I should really move everything out of Halifax/Lloyds but it's a load of hassle.

From the Lloyds/Halifax websites:

"Ordinarily if you complete a W-8BEN form you will only pay the 15% Withholding Tax rate instead of 30% on US listed shares paying US sourced dividends. For UK listed shares paying US sourced dividends a 30% Withholding Tax rate is applied even if you have a W-8BEN form in place.

For example, you would receive $70 on a $100 dividend."

I don't know why they do this! Reading AJ Bell's T&C's they say they don't offer a foreign withholding tax reclaim service, but for US investments (presumably bought from a US exchange they do offer the 15% withholding discount) so it sounds like Halifax and AJ Bell treat London listed US stocks in the same way for trading ISA accounts.

[wllmherk] 19/11/2023 14:17

I'm with Halifax share dealing and they sent me a W8-BEN form which I completed and returned, only to be told they don't provide the tax rebate. That was earlier this year.

wllm :)

[imnotspartacus] 19/11/2023 08:30

They do now accept the W8ben form so I’m expecting the discount. You can download it from the iWeb site.

[aishah] 18/11/2023 23:34

APPL should do a 10-1 consolidation to get to the top of the tree then!!

[scubadiverr] 18/11/2023 19:58

Is anyone holding this via iweb, and if so, what deductions are made from the dividend? TIA

[1knocker] 18/11/2023 17:12

I have to put my hands up and admit I did not know that aleman. Amazing (frightening?) the technical facts which can pass one by! Just as well I don't buy or trade indeces.

[laurence llewelyn binliner] 18/11/2023 13:25

#Aleman, thanks for that intel, very interesting, we will see how it pans out when the listing goes live 5/11th December, not long to wait either..

A 20:1 consolidation here could result in GBP20 PDQ with some healthy US interest pull, the 20% yield surely has to be attractive to bag now in advance does it not, why wait..?

[sogoesit] 18/11/2023 12:54

NYSE initial listing rules is a $4- share price minimum.
Allowing for a margin for the stock to go to 50p or below (to keep listed) a 1:20 is no big deal.

Read all about it...

[aleman] 17/11/2023 20:58

The absurd US affection with high share prices is because the Dow is weighted by share price and not market cap so low share prices and the low weightings they bring are superficially linked to inferiority. Penny stocks will occasionally be assumed to be basket cases and overlooked by some. Note how heaviest-weighted UNH has about 3 times the weighting of APPL because its share price is 3 times as high - even though the APPL market cap is 6 times higher. It's a nonsense of an index yet many people, especially outside the USA, are unaware of its anachronism.

[mattybuoy] 17/11/2023 19:31

North Americans are obsessed with the number of shares out. It doesn't matter if it makes any sense or not it's the way it is.

[1knocker] 17/11/2023 17:38

The share consolidation sounds rather extreme? I don't know the figures to avoid US penny share status, but surely a 1 for 20 consolidation is far more than necessary? I hope they are not calculating for a fall i the share price !!

It certainly won't help theSP here. Its mad, but the accepted wisdom is that there is a better market for 50 shares at a pound a pop than for 1 at £50, even though they represent the same proportion of the value of the company and pay the same % dividend. Given that most shares are held by institutional holders, and presumably even amongst PIs there are few who buy or sell50 quid's worth at a time, or indeed are embarrassed by pitching buys and sell at multiples of fifty quid, this has always surprised me.

surely at a share price of less than a couple of hundred pounds it should make no odds? Do folks really feel a warm glow looking at the number of shares in a company they own, rather than the value of the holding?

I suppose a lowish price is handy for companies running dividend reinvestment and scrip dividend schemes, but that is the only practical consideration I can think of. The price of a share does not seem to have held Berkshire Hatherway back unduly!

Psychology, I suppose. Nowt so strange as folks.

[mattybuoy] 17/11/2023 15:43

I have not seen a US O&G stock with a yield over 12%, so assuming the company isn't going bankrupt (and the stateside instis become convinced of this) it should slowly correct upwards purely based on that.

You can see bigger O&G yields on the NYSE but these are attached to things like Petrobras and Ecopetrol i.e. Latin American NOCs etc.