Diversified Energy Share Discussion Threads

[this_is_me] 02/1/2024 08:02

I got my dividend paid into my Charles Stanley ISA on 29th.

[kaos3] 02/1/2024 07:59

I think , not know how it works

1. Assets are put into spv
2. Production gets forward sold eg monetized in the form of contracts
3. DEC sold contracts and 80% of SPV

buyer probably needs dec to operate the assets

Buyer must have cheap funding and will be earning spread between contracts return and own cost of capital

DEC had probably given some kind of guarantie

Am.i right?

[meanreverter] 02/1/2024 07:58

Kipper999: IG charges £96 per year, but dealing charges can be offset against this; for details, see

[laurence llewelyn binliner] 02/1/2024 07:56

Nice way to look at it, the last raise was 20% dilutive at 105 pence, we are now buying those shares back at half the price, and now have the liquidity to accelerate the volume rate, if we chose to do so, just as we head towards the next XD which the shorts will be scrabbling to cover beforehand..

[fordtin] 02/1/2024 07:50

carcosa - re #7055, it seems to me DEC started a new company, transferred some assets to it, then sold 80% of the new company.

"In summary, the Transaction consisted of the Company executing a sale of producing assets in Appalachia (the "Assets") to a Special Purpose Vehicle ("SPV"; DP Lion Equity Holdco LLC) in which Diversified retained a 20% minority interest and operatorship of the Assets. The Transaction generated proceeds to the Company of approximately $200 million, comprised of an Asset Backed Securitization placed at the SPV and a sale of an 80% equity interest in the SPV for approximately $30 million."

[johnhemming] 02/1/2024 07:50

DP Lion is no longer a subsidiary because DEC only holds 20%. Basically it increases cash by USD200m and liquidity by about USD80m.

This as I see it goes a long way to sorting out the working capital issue that otherwise they were going to have to do a placing for.

Looking at the forward gas price the working capital issue should reduce over 2024, but that depends upon where the gas price goes during the year.

[kaos3] 02/1/2024 07:49

Dec not just sold the assets...

They will probably keep earning cash operating the assets and charging some transportation costs

Good

[fordtin] 02/1/2024 07:45

Plenty of liquidity to continue with a buyback program which has less than six months to run and authorisation to pay up to ~£89million for another ~4.25million shares.

[carcosa] 02/1/2024 07:40

Can someone explain how this works? DP Lion Equity Holdco LLC is Diversified's own subsidiary: hxxps://ir.div.energy/financial-information/sec-filings/content/0001104659-23-124384/tm2330473d4_ex8-1.htm

[kaos3] 02/1/2024 07:39

Conclusion by the name similarity?

Not in their portfolio on their web page

Yet

[croasdalelfc] 02/1/2024 07:39

Also the Tanos assets had a chunk of valuable oil whereas todays sale is very cheap gas

[leoneobull] 02/1/2024 07:38

https://lionequity.com/about-us/Lion equity PE firm appear to be the buyer

[croasdalelfc] 02/1/2024 07:37

#DEC bought 17kboepd worth of assets last Feb for $250m. Since then they have sold $56m of undeveloped assets and today another $200m more for 6.9kboepd .Also at the time they raised $165m at 105p for 128m new shares and have been buying back those shares cheaper than that ever since - at least 20m (before consolidation)On the face of it - very good business

[kaos3] 02/1/2024 07:34

Good but i miss who the buyer is...
If i get it right

Nothing to worry enron style

[sbb1x] 02/1/2024 07:31

Excellent RNS. Could we be tagging 12s today...

[laurence llewelyn binliner] 02/1/2024 07:23

Nice RNS, that wiped a chunk (12%) off our debt/net debt numbers..The start of the share price trend reversal ..?

[justiceforthemany] 02/1/2024 07:20

Strange time to be selling off assets?
Letter response due by tomorrow.

[tsmith2] 02/1/2024 07:18

reads like v good news

[johnhemming] 02/1/2024 07:12

About USD80 million increase in liquidity.

[leoneobull] 02/1/2024 07:06

12% reduction in net debt..

[leoneobull] 02/1/2024 07:04

Oakbloke was RIGHT! There is significant value in DEC's portfolio above what tgey are already exploiting that can be capitalised!Diversified Energy Company PLC (LSE: DEC, NYSE: DEC) is pleased to announce that it has closed an innovative transaction (the "Transaction") that has allowed the Company to unlock additional value from its current asset base at an attractive multiple while further enhancing liquidity and reducing leverage.In summary, the Transaction consisted of the Company executing a sale of producing assets in Appalachia (the "Assets") to a Special Purpose Vehicle ("SPV"; DP Lion Equity Holdco LLC) in which Diversified retained a 20% minority interest and operatorship of the Assets. The Transaction generated proceeds to the Company of approximately $200 million, comprised of an Asset Backed Securitization placed at the SPV and a sale of an 80% equity interest in the SPV for approximately $30 million. Proceeds (net of transaction-related costs) were used to repay outstanding borrowings under the Company's Sustainability-Linked Loan (revolving credit facility), resulting in an approximate 12% reduction in net debt, and for general corporate purposes.The implied valuation of the Transaction represents a multiple of 5.7 times the expected hedged 2024 EBITDA of approximately $35 million. The sold Assets owned by the SPV were previously included as collateral on the Company's Sustainability-Linked Loan and had a PV-10 of approximately $230 million (gross production 50 MMcfe per day) based on forward looking commodity prices, which resulted in the borrowing base for the Company's revolving credit facility being redetermined to $305 million.Rusty Hutson, Jr., CEO of the Company, commented:"This latest transaction further demonstrates the attractiveness of Diversified's asset base that provides reliable production and consistency of cash flows. At an attractive multiple, this Transaction has provided a path for the Company to unlock additional value from our assets, reduce our outstanding debt, and enhance our liquidity."

[2wild] 30/12/2023 18:30

Just checked my purchase yesterday of dec along with a couple from last week no stamp duty. Interactive Investor have also announced the £20 a month all in plan will now include six commission-free trades per month. Saving me £192 a year, starting January. £10 a month extra to add a SIPto your ISA and trading accounts.

[justiceforthemany] 30/12/2023 16:58

Response to the dirty Democrats letter is due by Wednesday. Not that they can do anything regardless. No legal obligation to even reply.

[kipper999] 30/12/2023 15:41

What are the fees you are paying on your IG S&S account if I can ask?

[meanreverter] 30/12/2023 14:35

IG paid on the dot, as it usually does.