Diversified Energy Share Discussion Threads

[gary1966] 15/1/2024 16:10

They have hedged out most of production to 2025 that easily covers the dividend. They have also hedged well beyond that as a result of the financing which secures part of it already, even if the rest was worthless, which it isn’t. They are probably starting to hedge a little into 2026 now and longer term prices are ample to cover the dividend. What have Investec been smoking?

[lab305] 15/1/2024 16:09

Well I warned you all several times. I took a big hit selling over 600k shares at 72p .All talk about shorters influence and how the US listing would save DEC is nonsense. I was this company's strongest advocate but since they abruptly stopped the first buyback in November 2022 followed by the placing that they were never going to do again I for one lost trust. Subsequently their actions have confirmed to me that they are completely untrustworthy and the dire share price is no surprise.

[bountyhunter] 15/1/2024 16:04

"According Investec analyst Alex Smith, US oil and gas producer Diversified Energy (DEC) has one of the top dividend yields on the London Stock Exchange, at over 20 per cent"

More like over 25% or is it 30% today!
Even if they cut the dividend in half it would still be very high.

It seems to only comment on maintaining the high dividend, a bit shallow and no mention of hedging and falling interest rates anticipated over the next 12 months.

[bountyhunter] 15/1/2024 16:01

Here's the link, so IC quoting Investec has done the damage today. It's simply talking about maintaining the high dividend, nothing else.


(scroll down to DEC)

[cassini] 15/1/2024 15:55

From the IC today:

Investec: Diversified Energy dividend at risk without asset sales

According Investec analyst Alex Smith, US oil and gas producer Diversified Energy (DEC) has one of the top dividend yields on the London Stock Exchange, at over 20 per cent, but its balance sheet is starting to creak. He said the payout would have to come down without further asset sales. “Currently, the company does not have the liquidity beyond 12 months to maintain its current dividend,” Smith said, estimating the company’s annual interest payments at $174mn (£137mn).

Earlier this month the company announced an asset sale that would bring in $200mn, although was more a complex spin off transaction than standard divestment. Diversified shares fell 5 per cent on Monday morning.

[bluemango] 15/1/2024 15:41

There comes a point where the fall is already greater than any unforeseen bad news such as a temporary reduction in dividend would warrant. Whether that point has already been reached and overshot, no-one is likely to agree on.

But a temporary cut to, say, 15% yield rather than 30% would (logically, at least) not see any further downside.

[kaos3] 15/1/2024 15:31

Currently, the company does not have the liquidity beyond 12 months to maintain its current dividend

of course... that is the point ... predictability and optimization of a fine tuned machine

[cassini] 15/1/2024 15:24

From the IC today:

Investec: Diversified Energy dividend at risk without asset sales

According Investec analyst Alex Smith, US oil and gas producer Diversified Energy (DEC) has one of the top dividend yields on the London Stock Exchange, at over 20 per cent, but its balance sheet is starting to creak. He said the payout would have to come down without further asset sales. “Currently, the company does not have the liquidity beyond 12 months to maintain its current dividend,” Smith said, estimating the company’s annual interest payments at $174mn (£137mn).

Earlier this month the company announced an asset sale that would bring in $200mn, although was more a complex spin off transaction than standard divestment. Diversified shares fell 5 per cent on Monday morning. AH

[bountyhunter] 15/1/2024 15:09

I wouldn't be surprised to see a rise towards the close as daytraders exit.

[parob] 15/1/2024 15:01

I have just bought an initial amount. Hopefully close above 1000p

[nametrade] 15/1/2024 14:59

Id say good buy at this level..

You pays your money and takes your chance...

ATB

[laurence llewelyn binliner] 15/1/2024 14:55

No TR1 reducing notices printed so who is still selling or is this just the weight of shorts dragging us down..? they will have to cover sooner or later but it is getting tedious now, I was looking for some support and a floor at 1000..?

Bear raids can be vicious, my tracker does not log anything under 0.5%, so perhaps there are some other new funds jumping on the back of it to take a position..?

[fordtin] 15/1/2024 14:42

Gary - the company's reluctance to buy their own shares doesn't help.

Perhaps they should hold an EGM to extend the buyback authority, because the remaining £88.8M authorised would buy back 18.74% of the shares in issue at current SP, if they weren't restricted to the currently remaining buyback limit of 8.85%.

[leoneobull] 15/1/2024 14:39

Confused. Didn't DEC just do the January 2nd deal to improve liquidity and reduce debt??

[johnhemming] 15/1/2024 14:31

>we need directors to buy big chunks here.
If they were just about to do an acquisition funded by the liquidity from DP Lion they would not be allowed to trade.

There is other inside information that would prevent them from trading not least knowing the final results from 2023.

[gary1966] 15/1/2024 14:23

This is relentless. Every bit of public information says that this co is a well run, responsible company and so I am at a loss to know what other people know that I don’t. Awards won, lots of finance raised so business has been forensically checked, government contracts to retire orphan wells, all well retirement commitments exceeded, cash flow positive and being distributed and so real cash.

[farrugia] 15/1/2024 14:17

we need directors to buy big chunks here.

[marksp2011] 15/1/2024 14:12

WHITES

It wasn't "CONGRESS" it was four memebers of a subcommittee where they are in a massive minority but don't let the facts get in the way of your story

[cassini] 15/1/2024 14:11

It's a downgrade by Investec today causing this apparently, see parob's post on the other thread.

[bountyhunter] 15/1/2024 14:08

Any link to the actual article?

[parob] 15/1/2024 14:00

FYI:"A few wondering why Diversified Energy is going down againInvestec downgraded them today. Concerns around liquidity, ability to pay debt and cover existing dividend without further disposals."hTTps://x.com/baroninvestment/status/1746888458289676743?s=61&t=OPWPOeWZxD1L0Ap29u5T3AI'm not currently a holder but I'm watching.

[sbb1x] 15/1/2024 13:58

U.S. Rate Cuts Could Start in March; ECB, BOE to Follow Later, Goldman Says

[bulltradept] 15/1/2024 13:26

Steve "I use the pauper's subscription to advfn".

For someone whose not interested you clearly have a lot to say for yourself on this company.

I take it you've just discovered spread betting and are short.

[stevensupertrader] 15/1/2024 13:21

DEC now under £10 - more pain for those who never listen thinking is a bargain . 😞

[sbb1x] 15/1/2024 13:20

Criminal rigged and bent markets, time to add a little bit more.