Diversified Energy Share Discussion Threads

[lord gnome] 05/8/2021 09:48

Yellowstone- change the https to hTTps and that gets round the problem. ADVFN don't like links to other sites so the links auto-change so that they don't work. Very silly.

[kaos3] 05/8/2021 09:40

an important detail is this large number - which was "loss making" but at the end of the hedging period it will be gone and will return $47 million back to us:

"Specifically, approximately $47 million of the $536 million net liability reflected on our balance sheet relates to the time value rather than their settlement value"

[yellowstoneadvisory] 05/8/2021 09:37

Hi @bountyhunter - how do you put a link in these chat boxes? Everytime I have tried it changes the https to hxxps? thxs

[kaos3] 05/8/2021 09:27

as there are many non cash items I looked if they publish a simple KPI - cash margin - which they do !!! it is cca 50 %!!!! implying superb operating efficiency

the only thing I do not understand is why did cash margin fall from 55% to 50 % - taking into account increased economies of scale, increased marginal effect of the rising price of gas, cheap (19k) wells retirement etc

and they give full explanation:

We experienced increases in per unit expense of 12%, or $1.30 per Boe, resulting from:

-- Higher per Boe Base LOE that rose 11%, or $0.27 per Boe, resulting from increases in cost from the acquired Carbon, EQT and Indigo assets and an increase in fuel cost;

-- Higher per Boe production taxes that rose 7%, or $0.03 per Boe, primarily attributable to an increase in severance taxes as a result of an increase in unhedged revenue due higher commodity prices;

-- Higher per Boe midstream operating expense that increased 8%, or $0.11 per Boe, primarily due to an increase in costs from our Carbon midstream assets acquired in May 2020 and due to an increase in employee wages for inflationary adjustments which allows us to attract and retain top talent;

-- Higher per Boe transportation expense related to increases in third-party midstream rates; and

-- Higher Base G&A as a result of investments made in staff and systems to support our enlarged operation.

[lab305] 05/8/2021 08:53

Buy note out from Cenkos already this morning.

[lab305] 05/8/2021 08:53

Predictable market reaction to what appear to be poor loss making results. We know that these are not real losses and that we should concentrate on FCF but it will be a hard job selling that to the investment community.

[fardels bear] 05/8/2021 08:45

Tara then. We won't miss you.

[scepticalinvestor] 05/8/2021 08:32

Bargepole results, just dumped all at 105. Back to the 90s imo

[gary1966] 05/8/2021 08:29

This interested me:

90% of 2H21 natural gas hedged at a weighted average price of $2.98/Mcfe(5) ($2.76/MMBtu)

67% of 2022 natural gas hedged at a weighted average floor price of $2.91/Mcfe(5) ($2.69/MMBtu)

The wording is deliberately different? Does this suggest we have upside on the 2022 portion that is already hedged because it is a floor price rather than a fixed one?

[kaos3] 05/8/2021 08:20

can one please put some exact light on the mechanics of this line:

Net Income includes an estimated $81 million tax credit earned on wells producing >90 Mcf/day ...

TIA

it is huge !!!

[spangle93] 05/8/2021 08:05

I guess the reception will be based on which of these two lines the market will focus on

◦ Net loss of $84 million or $0.11 per fully diluted share (1H20: +$18 million, +$0.03/share)

◦ Adjusted Net Income of $204 million or $0.28 per fully diluted share (1H20: +$112 million, +$0.17/share)

edit - slide 14 sums it up

[lord gnome] 05/8/2021 07:44

These look stunning numbers at first sight. No doubt though, we will have people screaming again about losses on hedges and the company making large losses.
Simple thing to focus on is the free cash flow, i.e. the cash the company is actually generating from its operations - the first half produced approx US$ 117 millions. Say that's a run rate of US$250 for the year allowing for further growth in H2, or approx GB£180 millions. Against a market cap of GB£900 millions we have a real P/FCF ratio of just 5.

[bountyhunter] 05/8/2021 07:43

Today's presentation is here...

[carcosa] 05/8/2021 07:32

"When adjusting our multi-year derivative portfolio to its fair value as of 30 June 2021, we recognised a pre-tax $371 million non-cash charge in earnings. This non-cash valuation charge primarily relates to higher prices on the forward price curve for
natural gas, and drives our $132 million gross profit into a $344 million pre-tax net loss. When excluding this non-cash loss, we report $27 million in pre-tax net income and Adjusted Net Income of $204 million."

Presentation available on their website

[lord gnome] 05/8/2021 07:32

Thanks Guys - I have reserved my place.

[yellowstoneadvisory] 05/8/2021 07:23

Everyone welcome at the webinar with management at 6pm this evening to hear more detail on these HY results

Register hxxps://us02web.zoom.us/webinar/register/4916272454010/WN_bOMATEgBT_e02nsjArMXpA

[sunbed44] 05/8/2021 07:11

Excellent q2 dividend payment announced really looking forward to the call at 6pm not many shares paying >10% divi whoop whoop also with good chance of capital growth as well

[fardels bear] 04/8/2021 15:37

Crying in the wilderness as usual. As I've mentioned before, I don't think you are cut out for this game. It requires PATIENCE..

[lab305] 04/8/2021 14:23

Constructive well reasoned argument as usual ! If the market fully trusted the company they would back it. There may also be a worry that they will pull another placing.

[fardels bear] 04/8/2021 14:09

No, there isn't..Just pipe down..

[lab305] 04/8/2021 13:57

NATURAL GAS. 4.123 +0.096 +2.38%
Highest for a long time. When will we follow ? Surely with the potential of more than doubling profit in the not to distant future we should be trading way above this pathetic price. There is a lack of trust here.

[scepticalinvestor] 03/8/2021 09:46

So you didn't buy in the 90s?? Bad form! ;)

[kaos3] 03/8/2021 09:08

observing TA (by responding makes me an "ac" expert lol) - still waiting before further buying

[dunderheed] 03/8/2021 09:05

I'm still here geyser.