Diversified Energy Share Discussion Threads

[oneillshaun] 17/1/2024 07:36

Love that the company are taking advantage of the drop in price to buyback this has to give the market some confidence all is ok.

[stevensupertrader] 17/1/2024 07:33

This is the largest buyback of shares by DEC yesterday (100000) by far .
DEC will definitely motor up over £10.59 easily today

[laurence llewelyn binliner] 17/1/2024 07:32

100,000 bought back yesterday, a strong buy there eqv of 2M before the Xmas consolidation..Inflation up for Q4, it could be an ugly day on the wider FTSE market for us all..

[topazfrenzy] 17/1/2024 07:22

That’s 2m shares bought back yesterday in old money

[leoneobull] 17/1/2024 07:05

Buyback 100000 yesterday. That's more like it Rusty

[johnhemming] 17/1/2024 06:49

I have found a more accurate quote:

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 dividend at $174mn (£137mn).

The Dividend is USD 167m and to be fair without acquisitions or something else the dividend would have to reduce, but not stop.

[johnhemming] 17/1/2024 06:46

@Cassini I have looked in detail at the form 20F and various other documents. I think interest is around the USD60-70 mark. (DYOR of course)

170 would be an interest rate of around 14%.

[sbb1x] 17/1/2024 00:08

The stock market could soar as much as 30% next year as expectations grow for the Fed to slash rates and inflation to drop 'like a rock,' Fundstrat's Tom Lee has said per BI.

[cassini] 17/1/2024 00:02

snippet from theoakbloke:


'DEC cannot pay dividends for more than 12 months':

For today’s final chestnut, Alex Smith of Investec has (somehow and he won’t say how) estimated the company’s annual interest payments will increase to $174m in 2024.

We’ve just paid off around $180m from the most expensive debt, the RCF through the SPV sale. We’ve reduced shares in issue through buy backs reducing the cost of funding dividends. Interest was $59m in 1H 23. My estimate is that drops by 1/4 by paying down the RCF. That gets me to $90m interest a year so how can you arrive at $174m!!! Especially when the majority of debt is fixed i.e. the ABS notes are fixed! In fact the mathematics are you’d need to go from 8.65% to an interest rate of over 100% on the RCF to arrive at such a number.

Or you’ve made a mistake in your sums Alex Smith.

There has been free cash flow dividend cover until now, as well as spare capital for allocation for buy backs. Today’s update is a tacit “in line” - otherwise they couldn’t have said it. Again where is the basis for the sudden and completely unexplained misfortune?

[scrwal] 16/1/2024 23:08

OakBloke has yet another article out yakking about plugging costs using data from the latest interims.
He places great emphasis on "AUDITED ACCOUNTS" his capitals not mine but he is wrong as they are only subject to an Independent Review as disclosed on page 21 of the interims in which it clearly states "A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently,does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion." ie not an audit.

[imnotspartacus] 16/1/2024 22:04

19 would be nice

[leoneobull] 16/1/2024 21:16

https://theoakbloke.substack.com/p/dec-iding-on-whats-real?publication_id=1859293&utm_campaign=email-post-title&r=35hz0dI do like this chap 's analysis

[mindthestash] 16/1/2024 21:09

OK. Thanks all. No buying allowed. Noted

[fluffchucker1] 16/1/2024 20:51

Financials due in a couple of weeks. Most likely a closed period for insider buying/selling.

[bountyhunter] 16/1/2024 19:56

You wish, 19 quid is my guess when the shorters stampede for the exit.

[laurence llewelyn binliner] 16/1/2024 19:14

Our US shares having a poor day, but we have at least reached price parity now on todays FX of 1:1.26.. :o)

[bountyhunter] 16/1/2024 18:52

The highest volume to date in New York by far today and the market hasn't even closed yet..

[fordtin] 16/1/2024 18:32

Mindthestash – re; “No directors buying at these prices?”

On 5th Jan the CEO said; “We want to be part of the M&A consolidation efforts that will take place in our industry this year. We think there’s a lot of opportunities”.


If there are any current negotiations, Directors and any other insiders will not be permitted to buy or sell shares until an event is announced or the negotiations are terminated.

We won't know until any deal is announced, and may never know if there are negotiations ongoing which come to nothing.

[justiceforthemany] 16/1/2024 18:14

That dividend argument is not true, has ben proven many times. These scoundrels have ways of bypassing it. Rogue +++

[mindthestash] 16/1/2024 17:41

One more downer. No directors buying at these prices?

[aleman] 16/1/2024 17:23

600k+ traded in UK today. Today in the US is already 120k so volume there is significant now. I can see it overtaking in a few weeks.

[bountyhunter] 16/1/2024 17:10

XD 87.5c on 29 Feb, shorters definitely will not want to be paying that imho.
This could turn on a sixpence when they close.

[cassini] 16/1/2024 16:47

Drk1,

Sorry, crossed wires, I merely meant trading LSE:DEC at about the US market open time in case we got a boost...

Not that anyone would be interested, but for full disclosure my ~£10k trade today actually cost me a fiver mainly in the ii trading fee as I got out pretty much dead nuts flat.

The price went directionless after the US open and without any momentum I thought better of it and bailed after an hour, only to then see it rise ;0)

[geckotheglorious] 16/1/2024 16:42

DRK



IG
Diversified Energy Co PLC
1320
1336
-123.00
-8.48


This is the US listing I suspect.


As this is the UK
Diversified Energy Company PLC
1024.9
1043.6
26.00
2.60


$$/££ 1.27