Diversified Energy Share Discussion Threads

[t 34] 27/11/2023 09:00

Imagine the buyback number after consolidation; there will not be any shares left for PI.

[imnotspartacus] 27/11/2023 08:39

Bought back 1.12m not bad.

[johnhemming] 27/11/2023 07:23

Does anyone have any idea what the buying pressure from Index funds on the US market is likely to be?

[2wild] 26/11/2023 18:20

Perhaps a bull and a bear having a regular punch up.

[lord gnome] 26/11/2023 18:05

Is that the Canadian version of the bull in the China shop?

[bluemango] 26/11/2023 16:49

True, a violent moose can make just about anything else seem trivial by comparison.

[2wild] 26/11/2023 16:26

In reality, share prices have little to do with fundamentals.. Around two years ago, tesla Traded at $440, Fell 75% to below 110 around the start of this year and then quickly doubled a few months later. Netflix, Amazon and most other so-called magnificent 7. Have all seen violent moose in the share prices which make the movements in DEC seem trivial.

[bluemango] 26/11/2023 13:15

I think the wording is standard disclaimer stuff, along with all the usual 'risks' statements you get with any similar document and no particular significance should be read into it.

The dividend income here is not simply an attractive add-on, it is far more than that; it's the entire raison d'être for the company. People have commented in the past that, rather than being a standard O&G producer, it's set up more as a kind of specialised financial instrument for the main purpose of providing a high yielding long term income.

I see no reason for that strategy to change.

[tag57] 26/11/2023 11:47

Thanks Carcosa.
Appreciated your highlight of the 20F form which I had a run through. The potential reduction in future dividends is always a risk in companies paying out a significant percentage of cash flows as divis so this is something I always have to weigh up as part of my decision to invest or not. I do like the fact that DEC’s debt is amortising and that they hedge heavily to provide some insulation to the volatility of the gas markets.
I personally don’t see such a risk to dividend reduction or abandonment from management other than should gas prices remain significantly below $3 for a prolonged period risking the contribution of non-hedged volumes.
Just my opinion of course.
Regards Tag

[johnhemming] 26/11/2023 11:39

This is the DEC form 20 filing

[johnhemming] 26/11/2023 11:34

@carcosa I think the key in regulatory filings is to ensure there are no grounds for litigation against the company if the company decides for whatever reason to take any particular decision.

[carcosa] 26/11/2023 10:59

T34, Thank you for your interest in my comment. While I understand your eagerness for information, I strongly believe in the value of personal research when it comes to investment decisions. If you're new to this, there are several resources available online. I suggest starting with the company's website or the US SEC / EDGAR websites. Often just going back a few posts in the same thread also provides answers to current questions, which has the subsequent added benefit of not cluttering up a thread needlessly.


Once you have a basic understanding on where to access data then it will hold you in good stead for future research. Often posters write DYOR which contrary to popular belief does not stand for 'Delegate Your Own Research' or 'Delay Your Own Research' but in fact, 'Do Your Own Research'.

Skinny... great link :-)

Tag,
Page 36, 87 and 122 are the relevant pages. Here are some extracts:

Because we may not pay any cash dividends on our ordinary shares in the future, capital appreciation, if any, may be your sole source of gains and you may never receive a return on your investment.

Although we historically declared dividends on our ordinary shares, in the future, our board of directors may decide, in its discretion, not to declare and pay dividends based on a number of factors...

Subsequent to our listing on the NYSE, while our Board’s evaluation of our ability or need to pay dividends will primarily remain a question of the foregoing factors, it will also take into account the performance of our ordinary shares, including relative to our peer group. There can be no guarantee that we will continue to pay dividends in the future on our ordinary shares.

We have not adopted, and do not currently intend to adopt, a formal written Company shareholder dividends policy prior to the consummation of this listing.

Now a lot of this could be attributed to legalise in the Form 20F. However the share price performance is clearly part of the decision tree regarding future dividend payments and having failed to increase the share price with an amazing yield there appears to be a pivot to drive the share price via other means.

Americans are not particularly keen on dividends so if the company really thinks the answer remains in share price appreciation then why have a dividend? I would therefore think that in a couple of years either the dividend remains as is but with a significant improvement in the share price, or if the share price remains moribund then cutting the dividend would suit the US market with eventual delisting from the LSE. Give it two years...

Also note that the Credit Facility covenants to be met prior to dividend payments. These are both operational and financial in nature meaning that if the Board consider taking on more debt or a large number of new leaking wells they may be prohibited from issuing a dividend. Stopping the dividend would be preferable to reducing company growth.

[t 34] 26/11/2023 08:04

Give us the link to F20

[carcosa] 26/11/2023 06:42

The F-20 form (which seemingly few people read) heavily implies that dividends will reduce and perhaps cease in favour of capital appreciation.

This is typical behaviors or US stocks in general. Dividends are only a 'thing' in the UK.

[cassini] 26/11/2023 02:39

If this divi goes anything like the last two, expect a 6.5/7p rise a few days prior to the ex-div date then a fall twice that size in the days following.

It may get interesting next week.

[bluemango] 25/11/2023 15:55

I'm assuming that, given the Q2 dividend payment is not due until 29th December which is after the 1:20 consolidation effective on 5th December, the Q2 dividend (and Q3 dividend announced on 15th November) will both be adjusted by x 20? Therefore each should be 20 x 0.04375 USD = 0.875 per share, per quarter with an annual dividend of 3.5 USD compared to current 0.175.

[skinny] 24/11/2023 11:26

About this time! :-)

[1knocker] 24/11/2023 11:04

Yes, the market seems to have classified all too many of my holdings as falling into the 'Trotter brothers enterprises' sector and rated them accordingly this year.
I live in hope that means I have multiple opportunities to become a millionaire next year!

[oneillshaun] 24/11/2023 09:37

Just keep adding and averaging down, lowest so far is 68p and highest 1.07 and a few dividends but still in the red.

[fordtin] 23/11/2023 17:58

1knocker - gave you a thumbs up, but unfortunately 'Next year Rodney' is sold out!

[1knocker] 23/11/2023 17:37

It would be nice to think that one of these days DEC shares might be worth rather more than £14, especialy as £14 is not worth what it was !!

Next year Rodney, next year we'll be ....[those who know their Only fools and horses will be able the fill in the rest].

[wildchild] 23/11/2023 14:58

No USA today and, surprise surprise ... we are up, and holding our gains into the afternoon.