Diversified Energy Share Discussion Threads

[aleman] 25/1/2024 10:16

Ok - I see no numbers in your post. Operating cashflow pre-working cap was $275m in H1. (Last year H1 $144, FY $275m). Let's assume H2 is only $225m so FY will be $500m. Annual dividend $143m. FY interest cash cost was $83m (mostly fixed rate) and leases $11m. That leaves $250m+ to pay down debt or play with. Can you tell me why that can't cope with debt of $1.3bn+ (after the recent disposal)?

(The capping business should have rapidly growing earnings as it expands but I don't know if is anything signifcant yet or ever will be. Further small disposals might contribute to debt reduction. Some already planned modest drilling is earmarked in recently acquired territory if prices firm. These might all help slightly though I would bank on none.)

What are your cashflow numbers?

I grant this is short term. Prices fluctuate and well production slows but short prices are hedged and debt should have been paid down and/or more production assets acquired in the medium term. Ther are a lot of variables, so it then becomes all about assumptions again. We should get a better handle on that in 6 days.

[bountyhunter] 25/1/2024 09:52

Thanks for the free advice whites but I think I'll ignore your prophesies.

You claim not to be shorting in which case I really don't understand your interest here - philanthropic I presume as another poster has already suggested?
Or are you something to do with the TW club?

Scarey times for shorters - since the share price has already plummeted due to shorter mischief, the trading update only has to be mediocre for the price to rocket from where it is right now, with the yield now approaching 30%. Furthermore as the results and XD date get closer it's getting harder and harder for the shorters to keep a lid on the price.

[louis brandeis] 25/1/2024 09:42

I'm actually always disappointed at the level of investor competence on ADVFN. You do get a few who know what they are talking about, but as time goes by, that number reduces.

OK, we are not all going to be able, or interested, in reading sets of accounts, but surely the level of curiosity should still be there?? Everyone seems to take what they are told at face value and will always remain steadfast in the narrative which they most like - even when facts obviously point to the narrative being false, or at the very least, questionable.

Snowcap have raised several serious issues in my opinion which need to be answered. The one that I'm most interested in is the cashflow. Very odd method of coming to a cashflow number. As far as well capping and long-term liabilities and risks - I'm happy with my conclusion: this stock is not investable.

You have to watch these type of companies. They have a bad habit of trying to push performance metrics further up the income and cashflow statements.

[louis brandeis] 25/1/2024 09:30

whites123

Most here are wishful thinkers. Rabbits in the headlights etc..

They won't know it is over until the fat lady sings.

[topazfrenzy] 25/1/2024 09:14

Whites is just a very sad bitter person that trolls me as he's obsessed with the dog PFC which is about to go bust lol

[whites123] 25/1/2024 09:10

I dont short stocks Bountyhunter.
I hate shorts as its so easy to create and spread fear as opposed to generate feel good factors with stories.
Look what shorts have done to PFC.
Im only here because this stock was being pumped to death by a wombat called Topaz. It generated my interest and I have since read every RNS, and Im not convinced. Whereas with PFC I am convinced.
Im just hoping that holders here are not left holding the baby, as its not nice to lose out to shorters.

Im just saying that if I were a holder I would be cacking myself.
Despite the bravado being demonstrated here by holders "HOPE" is not IMO a sound basis or reason to hold a stock.

If the results contains a miniscule amount of authentication as to whats been alluded by the shorts then I think it will be catastrophic for holders and the share price will PLUMMET.
But, you know that.
You hold in hope.
I bet given an opportunity majority of you holders would sell out right now if you could get what you paid for it.
I hope you are not all left thinking you wish you had sold out this week as opposed to results day.
Scarey times for holders of that there is no doubt at all.

Just saying.

[whites123] 25/1/2024 09:07

Im just saying that if I were a holder I would be cacking myself.
Despite the bravado being demonstrated here by holders "HOPE" is not IMO a sound basis or reason to hold a stock.

If the results contains a miniscule amount of authentication as to whats been alluded by the shorts then I think it will be catastrophic for holders and the share price will PLUMMET.
But, you know that.
You hold in hope.
I bet given an opportunity majority of you holders would sell out right now if you could get what you paid for it.
I hope you are not all left thinking you wish you had sold out this week as opposed to results day.
Scarey times for holders of that there is no doubt at all.

Just saying.

[fluffchucker1] 25/1/2024 09:01

Whites. Alternatively if you own the shares you could look at the report supporting the short attack which has been totally debunked and produced solely for the financial benefit of the short. And then you could look at the calm factual response from the company clearly stating that there is no material change to its business. And then you could look at the analysts reports, the fact that DECs bankers are very comfortable and then you could look at the multitude of agencies and authorities as well as PWC who audit their books. Finally you could look at Rusty who has been doing this for 20 years and has I imagine 90% of his net worth invested on DEC

[assagai] 25/1/2024 08:50

Jeez whites , you just don't give up do you.
Transparent as crystal...or should we all thank you for your philanthropic efforts and giving so much of your time for the benefit of others.
C..t

[renewed1] 25/1/2024 08:50

If you havnt got anything intelligent to say white...why dont you go back to bed!!!!!

[bazboa] 25/1/2024 08:40

This is going blue soon

[assagai] 25/1/2024 08:38

Jeez whites , you just don't give up do you.
Transparent as crystal...or should we all thank you for your philanthropic efforts and giving so much of your time for the benefit of others.
C..t

[whites123] 25/1/2024 08:36

I wouldnt want to be holding this come results day.

Jeeezuz wept you holders must be cacking yourselves, I know I would be.

Is there any truth at all in the rumours?
Is as its rumoured the company are heading for the pits?

I know I wouldnt be holding myself, but then again Im not an out and out total gambler willing to risk my hard earned cash on something that can very very easily go POP and lose most of your money in 2 minutes from open on results day.
Each drop requires a bigger % increase to get back to from whence it fell.

Having read the company RNS's I am AMAZED at the amount of "We know no reason for price movement"....
Something doesn't add up here.
Langbar anyone?

[bountyhunter] 25/1/2024 08:34

You sound a bit worried about your short.
Trading update by 31 January.
XD 87.5c 29 February.

[whites123] 25/1/2024 08:32

I wouldn't want to be holding this come results day.

Jeeezuz wept you holders must be cacking yourselves.

Is there any truth at all in the rumours?
Will divis be cut?
Is as its rumoured the company are heading for the pits?

I know I wouldnt be holding myself, but then again Im not an out and out total gambler willing to risk my hard earned cash on something that can very very easily go POP and lose most of your money in 2 minutes from open on results day.

Having read the company RNS's I am AMAZED at the amount of "We know no reason for price movement"....
Something doesn't add up here.
Langbar anyone?

[waldron] 25/1/2024 08:26

aye

if oee accepts the Rnterprizs Value EV to be acceptable then one might expect by March to see eventually an uptrend

[bountyhunter] 25/1/2024 08:21

Another day of gyrations?

[aleman] 25/1/2024 08:13

US close was $11.75/£9.24 @ 1.271. Volume just shy of 300k.

[action] 25/1/2024 07:21

Trading update yesterday

[grahamg8] 25/1/2024 07:20

Plagiarism Justice. Quote your source - Oil and Gas Analyst.

[tsmith2] 24/1/2024 23:11

https://www.malcysblog.com/2024/01/oil-price-dec-genel-afentra-and-finally/

[justiceforthemany] 24/1/2024 23:06

Whilst it may be on the back foot from this attack I think that the overall strength of the portfolio and valued at well above the current market cap will ultimately mean that the exceptional management of DEC of a portfolio that with healthy oil and gas prices will mean that the short-term nature of rifle shot short trading is unprofitable and more importantly short lived.

The bottom line is that the management, who are major shareholders will always act in the best interests of the owners of the business and act accordingly. Finally for a company that is well hedged it correlates with the US natural gas price closely and that has fallen recently and I happen to expect a significant rise.

[justiceforthemany] 24/1/2024 23:04

Malcolm Graham Wood, Oil&Gas Analyst

I was in the process of writing on DEC already and was analysing the letters to and from the U.S. House of Representatives Committee on Energy and Commerce which had been started following letters received from four members of that committee who had requested information.

Assessing those letters and more importantly how and why the company decided to reply is of significant interest. Even though by nature of the letters coming from a few individual members, who are also not in the majority on the Committee, DEC didn’t have to respond at all, the fact is that they did and to a great extent put to bed the Asset Retirement Obligations that were put to them.

I have to say that this virtually unknown organisation who have taken this shot at DEC and a shot that is at a very easy target given the current malaise of the energy sector and one where the yield has got to a level at which even the company would be considering the best way forward in terms of internal funding and shareholder rewards.

The reason for this in most cases in the sector has been a degree of forced selling by income funds who have seen a great number of redemptions and consequently the high yield is sometimes largely affected by the long-only income funds who are restricted to balancing the books.

On a day to day basis DEC is going about sorting out the ARO’s, continuing to look at both acquisitions and disposals as part of normal portfolio and in fact current restraints are more than likely to enable the company to find new ways of funding these M&A activities which have always added value to the assets.

Whilst it may be on the back foot from this attack I think that the overall strength of the portfolio and valued at well above the current market cap will ultimately mean that the exceptional management of DEC of a portfolio that with healthy oil and gas prices will mean that the short-term nature of rifle shot short trading is unprofitable and more importantly short lived.

The bottom line is that the management, who are major shareholders will always act in the best interests of the owners of the business and act accordingly. Finally for a company that is well hedged it correlates with the US natural gas price closely and that has fallen recently and I happen to expect a significant rise.

[tunley] 24/1/2024 22:32

Loganair

Just be wary how that sounds/looks

Using tonight's UK and US closing prices, (converting the US$ prices at 1.29$ to the £) prices were within 8 pence of each other, which is 1% in difference.

It's probably even closer as the mid rate US$:one (1) UK£ is 1.2727

[bountyhunter] 24/1/2024 21:52

Not much change in New York since the NYSE opening level at 14:30 GMT. Volume was up again after the record high volume yesterday.