Diversified Energy Share Discussion Threads

[bountyhunter] 31/8/2021 14:24

Good timing Skyship!

[sunbed44] 31/8/2021 14:16

Ramp ramp ramp here we go again

[skyship] 31/8/2021 13:57

Bought back in at a shade over 108p this morning - now they are threatening to break through the 111p resistance...

[1knocker] 31/8/2021 12:19

If the general market will not pay rather more than the present share price for the income DEC generates, more fool the market. As I have aid before, I suspect that part of the problem is that the market feels that DEC is to good to be true. I was initially rather sceptical, but have now been enjoying the whopping income for some years. I am more than happy to sit back and continue do so. I keep a low ball limit order in to buy more when the price drops to especially silly levels.

[bountyhunter] 31/8/2021 11:41

Lab305, not at the moment in my view, but if DEC can take advantage of the current high gas price to put significant future hedging in place to lock in higher prices then maybe after that yes.

[redtom1] 31/8/2021 08:16

Lab305,
My answer would be no. I can't see this being a takeover target.
Who would be the buyer? Possibly private equity but I don't see it myself.
Shale gas companies are not exactly flavour of the month.
Equally the share price is not overly low. It is in the range of normality given its distribution policy. You just happened to be unlucky and caught it on a relative high.

[lord gnome] 31/8/2021 08:11

Quite Possibly in my view lab. Private equity players are probably already running the slide rule over the company and given the already generous returns and the explosive rise in gas prices, there must be several who can see a bargain on offer.

[lab305] 31/8/2021 08:02

Cassini all correct but my original question which no one has answered was does the cautious approach that DEC have adopted , and lowly share price resulting now make them more likely to be a takeover target ?

[johnhemming] 31/8/2021 07:54

The only problem with DEC's business strategy is that some people who buy shares in the company do so without knowing what the business strategy is. Hence they are inclined to sell the shares when perhaps in fact they should buy more. That drives the price down.

[fardels bear] 31/8/2021 07:49

But it seems some expect guaranteed high growth and large dividends. Probably the same kind of people that think giving everybody an A double star for their GCSE grades and outlawing failure is a good idea too. Price of living in a handrail society is that the ultimate disappointment is nailed on.

[sunbed44] 31/8/2021 07:19

Best post for a long time

[cassini] 31/8/2021 00:47

I think that DEC has a business model that prioritises expansion, financial security and the dividend over all out profits.

It's not a secret.

The hedging is to ensure the debts can be paid off even if the bottom falls out of the market. Now if DEC knew that the gas price would rise to >$4 and stay above there for the foreseeable, it wouldn't need to hedge any contracts would it? It would know the future.

Since it doesn't/didn't know the future it adopted a particular strategy designed to hedge its bets, so to speak.

Even though the gas price is >$4 now DEC still doesn't know the future. Hence it will no doubt continue with the hedging, as per its business model, but presumably tick up more and more contracts prices going forward in line with the current higher gas prices.

If people want a more exciting ride, how about zero dividends, high and vulnerable debt, but potential explosive growth (or collapse) as a business model? Well we can buy Premier Oil or Enquest or Rockhopper or Pantheon then can't we?

[sunbed44] 30/8/2021 23:45

SS great word but you are using it in the wrong context my friend. It should be used in relation to a person and not a thing or object. The structure of your sentence is all over the place, just saying.

[bountyhunter] 30/8/2021 22:10

Skyship - 'supercilious' lol, great word, I couldn't agree more :) .. and spot on FB, no-one has found a reliable crystal ball yet.
Mondex - I agree with you, a very logical post which makes sense, also JH good point re increased electric air conditioning ultimately increasing the demand for gas.

[fardels bear] 30/8/2021 20:58

Anything can happen in this world. Try not to sound so smug. If it does your being on watch will make no difference whatever.

[sunbed44] 30/8/2021 20:13

Hands up who can see gas price going down to $1.40Not on my watch

[johnhemming] 30/8/2021 10:45

The gas price is in part driven by the need for electricity for air conditioning. As far as I can see the spot price is just under USD4 whereas the next contract is just under USD4.50

[mondex] 30/8/2021 10:41

Bounty Hunter, the answer is there is a shortage of supply. This is true globally, but even more so in the US. CV-19 caused a drop in demand & for over a year drilling activity dropped significantly. Most natural gas in the US now comes from unconventional (shale) wells which deplete more quickly than conventional ones. If they don't continue drilling then the provision of gas drops. Also LNG exports consume an increased percentage of gas produced in the US. Currently there is a tilt globally towards under-supply.

[skyship] 30/8/2021 10:29

Ah - perhaps yr 749 above clarifies somewhat...

[skyship] 30/8/2021 10:26

Sunbed - Thnx )I think) for the rather supercilious and patronising post; but could you perhaps provide a quick resume of what it is that we should know. Otherwise, what was your post actually for?

[sunbed44] 30/8/2021 10:09

It amazes me that so few people do not understand the super-sevens (along with other oil and gas companies) ESG strategies. You really do need to spend some time and do serious research.