Diversified Energy Share Discussion Threads

[sbb1x] 03/1/2024 16:29

Nice buy 50,000@11.90

[t 34] 03/1/2024 16:10

How to do it ??

[sbb1x] 03/1/2024 15:56

See this attacking the gap @1300 in coming sessions

[sbb1x] 03/1/2024 15:10

Strong close and a gap up tomorrow morning....

[bountyhunter] 03/1/2024 14:43

Cheers 11p, one to keep an eye on both sides of the pond!

[renewed1] 03/1/2024 14:20

Must be some easy money to be made arbitraging this US/UK

[11_percent] 03/1/2024 11:45

bounty......nice header......gives a easy and clear idea of the share price is doing in both London and NY.

[tsmith2] 03/1/2024 11:29

Once again today

[skinny] 03/1/2024 10:06

A bit naughty - my dividend was received yesterday (2nd), yet HL have shown it as 29th Dec in the income account.

[justiceforthemany] 03/1/2024 08:18

£1 cheaper again on LSE.

[kaos3] 03/1/2024 08:14

I respect media and their perfection in tunes playing. From the fast to slow. From high to low and back.

Drama

I am enjoying the tune.
Thank you

[drk1] 03/1/2024 07:53

Nice litle mention in todays Citywire

"Diversified Energy makes ‘well-priced’ disposal, says Peel Hunt
Diversified Energy Company (DEC) has sold its Appalachian production site for $200m (£157m), which Peel Hunt says is ‘well priced’.

Analyst Matt Cooper reiterated his ‘buy’ recommendation and target price of £35 on the Citywire Elite Companies AA-rated gas and oil production company, which jumped 7.5% to £11.98 on Tuesday.

The group sold its Appalachian product for a 5.7 times price multiple, and the $200m proceeds will be used to repay borrowing on its revolving credit facility, reducing net debt by 12%.

‘We update our model to reflect the disposal,’ said Cooper. ‘Year-end 2024 debt falls from $1.3bn to $1.1bn…We are supportive of this well-priced transaction, which materially reduces net debt and increases liquidity.’"

[laurence llewelyn binliner] 03/1/2024 07:48

Up again after hours too on the NYSE and around GBP13 now on a current FX, has the penny dropped for the shorts now, and they will have to chase the share price up to cover..? Last day for a response to the information request too, so we should get an RNS to satisfy that hatchet job from the senators..

[grahamg8] 03/1/2024 07:40

New York close shows share price up 8% on the day. Yipee.

[leoneobull] 03/1/2024 06:33

Directors' Talk from 1 month ago. This may explain the sale..see end of Rusty's response.Q3: Now, your ABS notes represent a relatively unique financing structure, which recently had the ratings affirmed by Fitch. Can you explain the advantages and why you can use them?A3: Well, the reason why we can use them, and most people or most companies in our sector don't have the ability to use them, is because of the type of assets we have.That long life, low decline asset profile is perfect for these asset backed securitisation, similar to what you see with mortgage-backed securitisations and indirect lending securitisations. It's a long life, low decline profile, consistency in production and cash flows, because you're hedging it out over a longer period of time than you would normally and locking in those cash flows. It's rated debt, which makes it very attractive to insurance companies and those that are just looking for yield.It's been perfect for us because it's helped us to finance, garner liquidity so that we don't have to hit the equity markets as much, it's keeping our leverage within our revolver or RBL, which is a redetermined on a semi-annual basis and has that redetermination risk. It allows us to move that leverage off that RBL into fixed coupon amortizing notes that pay down over time, which is extremely important.I've always said that if you're going to use leverage to finance your business, you have to pay it back and the industry has kind of lost their way when it comes to that over the last several years.

[leoneobull] 03/1/2024 06:27

Investors' Chronicle Diversified Energy narrows portfolio with saleDiversified Energy (DEC), which owns around 90,000 mature oil and gas wells in the US, has signed a $200mn (£157mn) deal to sell off a chunk of wells in the Appalachian basin. The sale is "innovative" in the words of the company, as it involves selling 80 per cent of the assets to a 'special purpose vehicle' while holding on to 20 per cent and operatorship. Peel Hunt says the arrangement will take 2024 output down 5 per cent, to 124,000 barrels of oil equivalent per day. The proceeds will go to paying down net debt. The structure of the deal does involve debt, however – the assets get moved into the SPV, with the actual sale price just $30mn, while the extra $170mn comes from a loan taken out by the new entity. Stifel analyst David Round said the pricing of the assets at around NAV pointed to the company being underpriced on the market. "The cash injection is also welcome and should improve confidence around liquidity," he added. DEC's share price has floundered this year, and last month members of a US Congress committee launched a broadside against its strategy of buying up old wells.

[leoneobull] 03/1/2024 06:22

https://www.bizjournals.com/pittsburgh/news/2022/08/17/20-people-to-know-energy-jason-mounts.htmlEsg related. Think DEC will come out OK in the investigation albeit there's more they can do still especially in Pennsylvania

[joedjoed] 02/1/2024 23:09

What am I missing. The press release says "The implied valuation of the Transaction represents a multiple of 5.7 times the expected hedged 2024 EBITDA of approximately $35 million". DEC as a whole is trading on Enterprise value/EBITDA of only 1.08 (Yahoo Finance). What stops this financial wizardry being applied to all assets? Or looked at another way, if this structure pays off 12% of net debt by packaging 35mln of EBITDA, it only needs another 8 of them to pay off all debt. That would then apply to 280mln of EBITDA. Out of 1.64bn.

[imnotspartacus] 02/1/2024 21:26

Yep nice finish

[aleman] 02/1/2024 20:57

Jumped a bit less than $1 in the last 40 mins in New York, to around £12.80 equivalent.