Diversified Energy Share Discussion Threads

[copandrobber] 08/8/2021 10:08

https://www.bloomberg.com/news/articles/2021-08-06/the-era-of-cheap-natural-gas-ends-as-prices-surge-by-1-000

[lab305] 08/8/2021 09:40

Diversified Energy Co PLC on Thursday said its pretax loss widened to USD344.0 million in the first half of 2020, from USD59.2 million the year before.

Whilst headline figures like this persist then many investors will stay well away. If gas prices drop , which does not look probable from forecasts , then perversely the figures would look much rosier. Meanwhile if the share price stays where it is I get my money back in two years and two months approx.

[senn1] 06/8/2021 19:37

Anyone in TWD Looks primed for growth right time place product

Arrival deal kicks of early next year more to come I think. 60 mill MC Too cheap with more contracts

[johnhemming] 06/8/2021 14:48

>Still a grisly looking chart at the moment though, isn't it?

For the majority of my life my main investment was in a private company that was never listed. The share price is what people are willing to buy or sell a smallish number of shares for at a given time.

Now if there was no inherent value in the stock beyond the share price (like crypto) then I would be more worried about it.

If the price drops I can consider swapping some other stock into DEC.

In the mean time I can take the dividend happily for the next ten years or more.

[cassini] 06/8/2021 13:54

Still a grisly looking chart at the moment though, isn't it?

Just have to clutch our balls and hang on...

[1knocker] 06/8/2021 13:32

johnhemming. I would not be complaining if the share price doubled and the yield was thereby haled, thereby resolving suspicions about the high yield...

On a total return basis though, I certainly have no complaints about the progress of my holding.

Always good to see significant director buying, especially at a penny or two over my average purchase. price. That I do find reassuring, and so should those sitting on the sidelines.

[shanklin] 06/8/2021 08:19

Thank you YA

[yellowstoneadvisory] 06/8/2021 08:06

If you didnt make the webinar with management yesterday you can watch a recording here:

There is also a write up of the webinar which you can read here:

[shanklin] 06/8/2021 08:05

YellowstoneAdvisory

Is there any sort of replay facility on the webinar you held yesterday?

Not that I have any connection with InvestorMeetCompany but the use of a facility where you could replay DEC investor presentations would be very helpful.

TIA.

[lab305] 06/8/2021 07:44

NATURAL GAS. 4.168 +0.028 +0.68%
Up again and Rusty has invested a little more.

[melody9999] 06/8/2021 07:42

putting your money where your mouth is

[pro_s2009] 06/8/2021 07:11

06 August 2021

Diversified Energy Company PLC

Director/PDMR Shareholdings

Diversified Energy Company PLC (LSE: DEC) announces that on 05 August 2021, Rusty Hutson, Jr., Chief Executive Officer and Executive Director, acquired 250,000 ordinary shares of 1p each in the Company ("Ordinary Shares") through the market at an average price of 102.8029 pence per Ordinary Share. Following this purchase, Mr. Hutson now holds 21,172,899 Ordinary Shares, which represents approximately 2.492% of the Company's issued share capital.

[johnhemming] 06/8/2021 06:37

>Anything which Keeps the corporation tax bill down suits me as a shareholder!
I have not checked, but AFAIK were the company to be tax domiciled in the UK (AFAIK it is domiciled in the US) and hence due to pay corporation tax such non-cash items would not be part of the calculation.

I agree with you that people are suspicious about the high yield.

[1knocker] 06/8/2021 02:32

Anything which Keeps the corporation tax bill down suits me as a shareholder!

My DEV holding is already significant as a percentage of my portfolio, and I try to be disciplined about balance, but if it goes sub 100, I shall buy a few more. Any share which churns out 10%+ in hard cash each year is forgiven by me for showing no capital appreciation. So long as I remain in the blue (as I still am, narrowly) I am a happy bunny.

I often wonder if the share price would be higher if the yield were lower. I know that when I first found this I was very suspicious that it was too good to be true; perhaps others may too. Perhaps I should not put such heretical thoughts into print. I initially only bought a small holding, while I searched for the catch. Some years of regular and rising dividends have been very reassuring.

Good luck to one and all, and roll on the September divi.

[johnhemming] 05/8/2021 19:07

>Or non cash gains on values of reserves.
True, but that is really why hedging should not appear in the bottom line.

[gary1966] 05/8/2021 18:15

Or non cash gains on values of reserves.

[johnhemming] 05/8/2021 17:59

All it does is demonstrate the stupidity of rules which require recognising non cash losses on hedges, but not non cash gains on future production which is matched against those.

[plutonian] 05/8/2021 17:22

Diversified Energy CEO thrilled with first-half activity

[bountyhunter] 05/8/2021 13:08

Hedged adjusted earnings before interest, tax, depreciation and amortisation - which excludes mark-to-market valuation changes - was USD151.3 million, a 3.4% rise from USD146.3 million in the same period last year.

Diversified Energy tipped it now has an improved pricing outlook for natural gas materials and looks to hedge investments "at levels that support higher cash operating margins."



Interesting point about the floor on the 2022 hedging in which case DEC would stand to gain on higher gas prices on all production from 1/1/22.

[bountyhunter] 05/8/2021 13:07

YellowstoneAdvisory - actually all you need to do is to capitalise the leading 'h' to 'H' to make a link clickable.

[deadly] 05/8/2021 12:04

you don't need the hxxp://, just post the rest of the address which can then just be copied into an address bar.

[johnhemming] 05/8/2021 10:15

>I guess the reception will be based on which of these two lines the market will focus on
Although you are right about that, my guess is that the people who hold the stock are now moreso people that understand that the stock is about making cash profits every year rather than accrued profits based upon the values of hedges.

In essence the accounting error in IFRS is to measure the movement in value of the hedges, but not measure the movement in value of future production.

[yellowstoneadvisory] 05/8/2021 10:03

thxs Lord Gnome

[spangle93] 05/8/2021 10:00

Kaos - slide 13 of the presentation discusses the rise in opex, due to the acquisitions




Cenkos notes
We leave our valuation unchanged at 130p, a 24% premium to the current share price. We reiterate our BUY recommendation