Diversified Energy Share Discussion Threads

[napoleon 14th] 06/12/2023 13:17

I don't hold - just watching/mulling over a buy.

Surely if the divi is cut to 5% of the previous amount, that would indicate
serious profitability/cashflow problems, which would have to be RNSed?

[1knocker] 06/12/2023 12:04

Yes. The important item is 'record date: 28 March 2024'. Unless that dividend declaration is replaced with a revised declaration declaring a much higher dividend payment to reflect the fact that the shares in issue on the 28 March record date will be only one twentieth of the number on the declaration date (because the declaration PRECEDED both the consolidation and the record dates), the March 24 dividend will be only 5% of the December 23 dividend. By contrast, the coming December 23 dividend was declared in respect of the shares in issue on a record date which PRECEDED the share consolidation.

Possibly though the consolidation terms provide for a pro rata adjustment of declared dividends to reflect the reduction of the shares in issue upon consolidation. If so, unless pulled (as a declared dividend can be prior to payment) the March dividend is safe. I have not bothered to read the document, and don't suppose anyone else here has either!

[loganair] 06/12/2023 11:38

Hopefully the dividend per share is going to be times by 20 for post-Consolidation of shares.

[fordtin] 06/12/2023 11:20

1knocker - re "no dividend has yet been declared in respect of the post-consolidation shares."

Diversified Energy Company PLC (LSE:DEC) is pleased to announce that the Board has declared an interim dividend of 4.375 cents per share in respect of 3Q23 for the three month period ended 30 September 2023.

Key dates related to this dividend include:


Ex-dividend Date: 29 February 2024
Record Date: 1 March 2024
Payment Date: 28 March 2024
Default Currency: US Dollar
Currency Election Option: Sterling
Last Date for Currency Election: 8 March 2024

[1knocker] 06/12/2023 11:10

Captain S, I think LLB's post was intended to make a point about the commentators rather than the dividend.

You are not even strictly correct in your dividend analysis. The December dividend was declared and will be paid in respect of the pre-consolidation shares. No dividend has yet been declared in respect of the post-consolidation shares. If and when any dividend is declared in respect of those shares (for payment in March if the current quarterly dividend timetable is maintained )we hope that dividend will be not less than 20X the December dividend payable in respect of each pre-consolidation share, but that remains to be seen.

I don't know whether folks feel richer or poorer as a consequence of the consolidation, but at least the one for twenty change leaves a nice round and easily remembered twenty quid as my target to be back in the blue on my capital account. It is irritating that on any capital structure change HL scrubs all my earlier purchase and sale records.

[captain stock] 05/12/2023 21:39

No, each new share has 20 x old divi amount. Ergo still 20 percent

[tag57] 05/12/2023 21:35

Thanks for the reminder Elpirata.

[elpirata] 05/12/2023 20:50

This is addressed in the latest esg report with the DEC reported emissions data subject to ISOS accredited assurance, & also states

U.S. Inflation Reduction Act’s Methane Emissions Reduction Program (“MERP”) - At its core, the MERP requires the EPA to impose a charge on oil and gas companies for any GHG emissions those companies report above a threshold. Diversified’s 2022 NGSI intensity of 0.21% is fractionally above the proposed threshold of 0.20% for production assets. However, our GHG emissions reduction initiatives should bring us below the threshold, thus avoiding any financial penalties. At the same time, we are considering whether we may be eligible for funding grants for emissions reduction technologies under MERP.

[tag57] 05/12/2023 18:16

Morningstar article on the US IRA and methane emissions with potential methane emission fees. I hope DEC are reporting the correct methane emissions!
Probably a certain amount of exaggeration included.
hxxps://www.morningstar.co.uk/uk/news/243509/us-oil-gas-giants-face-48bn-in-methane-related-charges-study-claims.aspx?ut=1&utm_campaign=intl_newsletter_email&utm_medium=email&utm_source=sendgrid

[aleman] 05/12/2023 16:39

Today's huge fall in the 10-year Gilt yield from 4.20% to a 7-month low of 4.01% might start generally encouraging yield stocks up again.

[laurence llewelyn binliner] 05/12/2023 16:27

At last, a positive day, no doubt the analysis sites will be picking up soon on the savage dividend cut to 1.06% from 21%... :o)

[fordtin] 05/12/2023 15:54

SP up 14p since I last looked. Shame it didn't do that yesterday!

[fluffchucker1] 05/12/2023 14:06

The vast majority of consolidations are done by distressed companies where the share price has dropped below listing minimum

[holts] 05/12/2023 13:30

MRF , I have that same impression, it would be nice to buck the trend for once .

[2wild] 05/12/2023 13:27

My retirement fund. How many of those consolidations were for the express purpose of moving to a dual listing in the USA?

[bountyhunter] 05/12/2023 13:19

This is not typical though as it coincides with a new listing on the NYSE.

[my retirement fund] 05/12/2023 13:11

I've never seen a share consolidation where the shareprice improved over time. Expect further falls, albeit the consolidation should help hide the seriousness of it all.

[aleman] 05/12/2023 12:27

Just rang Computershare's helpline (0370 702 0151) and they're having technical difficulties where sound on their phone lines is rapidly drifting in and out, making conversation largely impossible. Ring tomorrow seems to be the advice.

[saltaire111] 05/12/2023 12:21

Is the consolidation 1:20?

[1knocker] 05/12/2023 12:20

Anyone who has not been paying attention and pressed the 'sell' and the 'my entire holding' buttons this morning to make a killing on the 'price spike' today is going to have had a nasty disappointment.

[fred177] 05/12/2023 12:03

just tried to sell my ii holding to bank my huge profit alas the order didn't go through, worth a try

[aleman] 05/12/2023 11:51

Any other direct holders on here? I've had no paperwork for yesterday's meeting or the replacement of share certificates yet. Given new shares are trading, it seems odd and I'm wondering if I should be chasing them up. I know there was an automatic default option for new share certificates to be sent out in 6 months if no other request was made but there was supposed to be options to choose from which I have had no paperwork for. I was expecting to opt for certificates now and receive dividends promptly instead of getting two delayed ones paid in 6 months time. Can anyone comment?

[skinny] 05/12/2023 10:16

Post 6459 - sadly, still down 45% on my HL account.

Charts in the header corrected.

[skinny] 05/12/2023 09:37

From 30th November :-



"For the purposes of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules, the total number of ordinary shares of 1p each in the capital of the Company in issue as at 30 November 2023 is 964,476,699 with each ordinary share carrying the right to one vote. There are no ordinary shares held in treasury and therefore the total number of voting rights as at in the Company as at 30 November 2023 is 964,476,699."

[oneillshaun] 05/12/2023 09:28

I believe they said they have no shares held in treasury