Diversified Energy Share Discussion Threads

[cassini] 23/11/2023 14:49

People haven't got £14 to buy a share with?


I thought fractional shares were more for behemoths with $500+ share prices...

[johnhemming] 23/11/2023 14:43

Fractional shares would have to be held through something.

[1knocker] 23/11/2023 12:31

I think fractional shares are now to be permitted in ISAs. Probably not soon enough for this consolidation though!

[action] 23/11/2023 11:45

Consolidation of shares email .

[fordtin] 23/11/2023 10:02

re post #6317 "1400p share price on AIM."

DEC is a ftse250 company.

There are 46 companies trading at over £10 per share in the ftse250, but only 35 companies trading for less than £1.

[drradcliffe] 23/11/2023 09:59

@Lorse I think once they are on the NYSE they'll review their London listing. O&G cos typically get a higher rating on the US markets, so the share price will probably move up 30% from where it is now, but London could easily be a drag on that. As you say small cap investors will be put off by a 1400p share price on AIM, yes liquidity could be affected in London. They'll understand this, and frankly they are right to move to the US because they are a US co and for the other reasons I've mentioned.

[lorse] 23/11/2023 08:47

Justiceforthemany - £14 is unlikely to help the liquidity or bid/offer spread, no?

[johnhemming] 22/11/2023 18:07

The sudden talk about litigation is having access to the pleadings for a case.

AUIU DEC have been on the responsible side of the industry when it comes to Methane Emissions and plugging.

Personally I like to understand the broader picture. (I bought a few more shares recently to make sure all my holdings are multiples of 20).

[aleman] 22/11/2023 17:58

It's not new but there are developments. Here are a few thoughts after a little reading.

It looks like there is LOTS of federal funding has already been passed to plug wells - over $5bn in funding to states and grants to operators - but the surge in financing has been thrown at an embrionic industry with lack of equipment and workers. The sudden excess of demand over capacity means they do the jobs that pay best in the market which will have risen in price and account for different numbers being chucked about.

DEC's defence will likely be that is is expanding plugging as fast as it can. It's growing plugging teams will gradually plug more but where they plug now will be driven by prices offered at state and private level. The limited number of plugging teams will naturally go where states or private companies offer highest prices, which will have been lifted by the a sudden flood of taxpayers' money into the market. DEC will likely not be plugging some its own wells where they are not easy to access or are not offered grants. The different actions at state govermenmt level in dispensing federal money - partly because of their own staff shortages with the right skills needed - seem to be distorting the market. Landowners in some of these areas will rightly feel aggrieved but if the plan is to get around to them when plugging teams are expanded sufficiently and/or when those states involved sort out their own inadequacies in dispersing funds, then I'm not sure how there is great fault with DEC. There's lots of money already there to get on with the job but it takes time to expand financial, administrative and physical infrastructure.

Again, there seems to be a lot of selective reporting going on but DEC will no doubt be making as much money as it can out of the sudden explosion in demand for its plugging teams. Private operators with grants available and at risk of prosecution will probably offer higher prices to plugging subcontractors than states that have older, more difficult, orphaned wells to deal with but nobody on the hook for them. Costs to plug and money available to do so will vary quite a lot from region to region. Why should DEC plug its own stuff if it gets offered more to plug someone else's. It already has legal agreements on some states for minimum levels of its own wells so any extra capacity there will chase the free market profit. Obviously potential fines in other states will make a difference but there are only limited numbers of plugging teams available and it's more of a case about which wells get plugged first until capacity expands. DEC will argue it is following court-defined minimum agreements and then following the state money and grants, doing its best in a confused new market. DEC is an easy target for journalists but it is states that look to have been slow to process funding and grants and put plugging specifications in place for pluggers to operate to, hopefully keeping out cowboys who will cause environmental damage.

[justiceforthemany] 22/11/2023 17:54

Why all the sudden talk about litigation? None of this is new.

[renewed1] 22/11/2023 16:30

If the plaintiffs lose their case ..do DEC receive their costs??

[tag57] 22/11/2023 16:05

11% It does look like that given some of the plaintiffs were not aware they were so upset before the lawyers contacted them. They then suddenly disliked the look of the oil rigs that were generally on their land prior to purchase of their land.

[scrwal] 22/11/2023 15:29

johnhemming
DEC are now using c$23,000 per well based on current information and they have had an in house team since H1 2022. My post still stands regarding potential costs and plugging rates/capacity.

[11_percent] 22/11/2023 15:08

Is this court case an other GREEN scam/attack.

[johnhemming] 22/11/2023 14:31

@scrwal DEC did not have an inhouse team until relatively recently. The 25K figure was an external figure.

[johnhemming] 22/11/2023 14:30

@CASSINI I think you are right. Basically DEC follows two things, Oil and Gas prices and yields.

[cassini] 22/11/2023 13:57

Today's performance possibly read-over from crude plunging 4%. BP getting a hard time too.

[scrwal] 22/11/2023 13:53

LLB
DECs plugging costs appear to be based on their current experience but even using their own expected 10 year cumulative plugging figures they cannot get close to these with their own in house teams and therefore have to use third parties at presumably much higher costs.

[aleman] 22/11/2023 10:36

In July 2018, Henry Hub was about $3.50 and in May 2020 only about $2.00. (How old is the court case?) If a well becomes unprofitable at $2.50 but DEC are forward selling at $3.50 to $4.50+, won't they simply be able to argue that some of the unproductive wells are going to be renovated and restarted as forward contracts come into play? You don't just plug thousands of wells every time the price drops a bit but you might slow production or shut it off and save it if you can forward sell it for more later. I'd imagine DEC can argue it's just a temporary interruption to normal commercial operation in some cases, making a court case about unproductive and abandoned wells very difficult for litigants.

[renewed1] 22/11/2023 10:04

Crikey...that must have cost a few quid to put together!!!
Gave up trying to find the litigation issues.

[drk1] 22/11/2023 09:58

Most definitely! (IMO).

[michelle74] 22/11/2023 09:39

Is this worth staying in ?

[johnhemming] 22/11/2023 09:15

Thanks for the link. Here it is with the hyperlink

[carcosa] 22/11/2023 09:03

20-F: hxxps://d1io3yog0oux5.cloudfront.net/_85dd8eebe5b85fc5c55c3b38b449a381/dgoc/db/556/5940/file/Diversified+Energy+Company+Form+20-F+%28November+2023%29.pdf

[laurence llewelyn binliner] 22/11/2023 08:55

DEC have their own plugging team, and acquired another plugging company with the Tanos deal, given that they do their own, and for 3rd party well owners you would think they had a pretty good handle on the costs of doing so given they write the invoices..?