Diversified Energy Share Discussion Threads

[drradcliffe] 30/1/2024 12:00

I think a dividend cut would be a very risky thing to do at this stage. It would send out the wrong message and validate the claims of the shorters. The other issue is the withholding tax for UK shareholders. Many shareholders pay 30% inside an ISA even with the W8-BEN, so the dividend has to be higher to compensate for this.

[bulltradept] 30/1/2024 11:54

Cassini!

"Bull, I added a few more on Friday last and am up to my limit now. Well, somewhat beyond it to be truthful"

I hope you've taken up religion!

[fordtin] 30/1/2024 11:51

Bluemango re; ” but I don't think, say, a halving in the payout is to be feared at the current well subdued valuation and resulting still-excellent yield.”


A dividend halving would probably be the straw which would break the camel for many shareholders, imo.

The highest price I’ve paid for DEC shares was a dividend reinvestment @ £25.68 (128.4 in old DGOC money).

My dividend yield on those shares is 9.1% after paying 15% withholding tax. If they cut the dividend in half, I would only receive 4.55% dividend yield on those shares.

As far as I’m concerned, cutting the dividend down to 4.55%, especially after a 73% loss of share value, I would consider to be a total betrayal of my trust in management.

I doubt very much that I'd be the only shareholder who would realise their losses to seek somewhere (hopefully) trustworthy to invest whatever I could salvage.

Two examples of companies which betrayed their shareholders' trust by cutting dividends, are RGL & i3e. Both of which saw an immediate sell off after cutting dividends, with no sign of recovery many months later.

[bountyhunter] 30/1/2024 11:51

I agree. They see a spade as a spade over there.

[sogoesit] 30/1/2024 11:45

Management need "to go shopping".... soon, in my view.
(Two years at 10% decline is not insubstantial).

[assagai] 30/1/2024 11:41

If I were DEC I'd hold off on the buybacks for now. Better to do it closer to the ex-dividend date to add firepower against the shorters and watch them burn,

[cassini] 30/1/2024 11:38

Bull, I added a few more on Friday last and am up to my limit now. Well, somewhat beyond it to be truthful 😅

[leoneobull] 30/1/2024 11:37

Yanks will love these numbers. Watch it bounce this pm

[bluemango] 30/1/2024 11:36

Presumably with the TU released we are out of closed period now and buybacks could resume with a vengeance?

Would seem an opportune time.

[elpirata] 30/1/2024 11:32

SP Angel

Diversified Energy Corp (DEC LN) 966p, Market Cap £464m: FY23 EBITDA exceeds expectations

[bulltradept] 30/1/2024 11:28

Short attack! Money to be made long!!

Come on Cassini!!

[laurence llewelyn binliner] 30/1/2024 11:11

Winnefroth getting himself into a lather is he, cover that short.. :o)

[bluemango] 30/1/2024 11:10

Good point about the 15% yield even if they halved the dividend - it certainly looks already priced in and I even think we could actually see a decent price recovery if that occurred.

Would much rather see a maintained dividend of course, but I don't think, say, a halving in the payout is to be feared at the current well subdued valuation and resulting still-excellent yield.

[1knocker] 30/1/2024 11:05

I bought a few more this morning at 965.

That takes DEC a bit above my weighting limit in the portfolio, but with about 7% of the cost of the top up coming back (they are in a SIPP) in a couple of months it is a risk I am prepared to take now that we have good 2023 figures in.

Probably more thrills and spills to come, but with the O&G sector under the cosh and DEC under attack, now has to be the time to buy provided the company survives! If the dividend were to be halved, today's purchase would still yield about 15%.

[elpirata] 30/1/2024 10:37

Oh dear, toys being thrown out of pram already but no rebuttal of the reported numbers


Share Prophets
@ShareProphets
Diversified Energy (#DEC) – attempted ramptastic “Trading Statement”

[11_percent] 30/1/2024 10:19

Looks good to me......particularly like the debt reduction.

[bluemango] 30/1/2024 09:37

Tennyson broker note

"a solid trading statement with headline financial & operating data which should provide further reassurance to the market after a turbulent couple of weeks"

[97peter] 30/1/2024 09:35

White123 - Are you a paidshorter, de-tamper by some broker or MM? Give it a rest, DEC are in a good position move on to your next unscrupulous short attack!

[bountyhunter] 30/1/2024 09:23

whites >> "The recent update did not generate much excitement or significant impact."

Is that the best you can do lol?!

So they met market expectations and are delivering a near 30% yield. Seems pretty good to me! Especially with all that hedging going forwards to secure future income.

Who needs a "WOW" factor with that near 30% yield. I'll settle for boring any day.

[tunley] 30/1/2024 09:15

Whites

'There are better investment opps elsewhere'

Yep, just running down the lengthy list of stable, debt reducing, growing healthily 30%+ yielders then...'

Oops - there aren't any.

Twit!

[aleman] 30/1/2024 08:55

Net debt down 15% from $1550m to just under $1320m. They should highlight this more. I presume the reduction will be mostly the 18% of debt that was subject to variable interest rates so almost all debt is now fixed rate?

[fordtin] 30/1/2024 08:32

Extract from last night's short positions update;



Position Holder
Net Short Position (%)
Position Date
 
Previous report




 
 
 
 
 


Adage Capital Management L.P.
0.66
01/03/2023
 
0.66


Connor, Clark & Lunn Investment Management Ltd
0.51
19/01/2024
 
0.51


Voleon Capital Management LP
0.60
26/01/2024
 
0.52


Walleye Capital LLC
0.53
25/01/2024
 
0.53


 
 
 
 
 


Total of above short positions
2.30
 
 
2.22