Diversified Energy Share Discussion Threads

[bountyhunter] 02/2/2024 16:11

At this level an increase in the level of buybacks would seem like a good idea as we get closer to the date in less than 4 weeks time when the shorters will have to fork out 87.5c/share.

[stevensupertrader] 02/2/2024 15:36

NYSE - currently trading at $11.38 @(£1 =$1.28) = £8.95 under £9 . Nothing DEC management can do to stop the shorters .
Already the damage is done as Market Capitalisation is just over $500m where debt /gearing almost 2.5 times or 250%.

[stevensupertrader] 02/2/2024 15:24

Each time DEC did the buyback, share price fell yesterday DEC did the buyback averaging £9.09 and today the share price went under £9.00.
Buybacks are not working better use the excess liquidity to reduce debt .
Look like share price will revisiting and testing again the lowest Ie under £8 . 😞 😞

[steamline] 02/2/2024 14:32

hxxps://www.uschamber.com/finance/corporate-governance/quick-take-how-stock-buybacks-promote-efficiency-and-strong-capital-markets

[aleman] 02/2/2024 14:23

The USA has already passed a bill into law taxing buy-backs at 1% and Biden wants to increase that to 4%. Also, a bill has been forwarded to abolish buy-backs in the US but why would they want to do that if it is going to generate so much tax? So, either way, the USA seems to be going in a different direction.

[kaos3] 02/2/2024 14:08

Yes... hence i posted the source

I posted it for the ilustration purpose

harmonisation of the global fin systems tells us what to expect all around in the near future. All operate under the similar global guidance

[fordtin] 02/2/2024 14:03

SEBI rules and regulations?

Is that The Securities and Exchange Board of India?

[kaos3] 02/2/2024 13:55

They should hurry up with BBs



What are the SEBI rules and regulations for share buyback?
SEBI market regulatory authority has put in place certain rules and regulations for companies who intend to repurchase their shares from existing shareholders.

SEBI is the key regulatory authority that has specified all buyback rules and regulations in the SEBI (Buyback of Securities) Regulations 2018. Recently, the buyback provisions and rules have been amended via SEBI (Buyback of securities) Amendment regulations 2023.

Here are the certain conditions imposed by SEBI while announcing share buyback;

In an open market offer, a company cannot place bids in the pre-opening session (9:00 to 9:15 AM), or the first 30 minutes, and the last 30 minutes of a trading day.
A company cannot buy back more than 25% of its daily average trading volume of its last 10 trading days preceding the repurchase day.
A company can repurchase shares at any price within 1% of either side of the previous trading session’s price.
It is mandatory for companies to utilize 75% of the proceeds of buyback through the stock exchange route, which was earlier 50%.
A company cannot repurchase its shares from odd lot holders.
From 1st April 2025, no company will be permitted to announce share buyback through the open market via stock exchange. Thus, a tender offer will be the only permitted route to repurchase shares from shareholders.
For FY 22-23, companies are allowed to buy back 15% of their paid-up capital and free reserves via open market buyback through a stock exchange. For FY 23-24, the maximum buyback limit permitted is 10% and the same is 5% for FY 24-25.
For all share buyback via a tender offer, a company can revise the buyback price even one day prior to the buyback record date.

[fordtin] 02/2/2024 11:39

My interest in buybacks isn’t really about supporting the share price, that should look after itself when the sellers run out of shares to sell.
My focus is partially about the potential savings stemming from not paying dividends on cancelled shares.
But it’s mainly about the consequent increase in asset value per share.

Taking Stifel’s “estimate of DEC’s NAV amounted to 3,116p per share “ as an example;

Buying back 10% of the shares at an average of £10 would increase NAV/shr to £33.51
Buying back 20% of the shares at an average of £10 would increase NAV/shr to £36.45
Buying back 30% of the shares at an average of £10 would increase NAV/shr to £40.23

I doubt they could get to that level without running out of sellers at that price. I also suspect such a scale of buybacks would result in a short squeeze long before they got to that level and provide you with all the share price support you could ask for.

With NAV increases of that magnitude, I’m ok with a 10% decline rate until the share price recovers sufficiently to raise funds for future acquisitions, at an acceptable price. (i.e. a price whereby any acquisition increases the NAV/shr more than further buybacks can).

In the mean time, the buybacks will have saved a considerable sum through not paying dividends on the cancelled shares.

[mindthestash] 02/2/2024 10:50

I hear what you say but it's been a tricky few weeks with a share price collapse. The board and number state it's business as usual but it would send a message.
Of course if they're in the middle of a significant 'deal' this might be tricky. I'm also not sure what the regulatory regime says about board members buying significantly ahead of significant authorised buybacks, the aim of which is to support market prices?

[fordtin] 02/2/2024 10:22

The CEO currently owns 2.53% of the company and his percentage is growing with every buyback. He's also got a shedful of options.

I wouldn't object if he wanted to increase his holding, but I reckon he's already got enough skin in the game to align his interests with the rest of the shareholders.

[mindthestash] 02/2/2024 09:55

I'd rather see directors buying with their money not ours.

As far as our money goes, Is there something about catching the right timing around short positions and the exD date as mentioned by others prevuously

[bountyhunter] 02/2/2024 09:40

The latest interview video link is now in the header in the YouTube section, and also at the top as well for now.

[fordtin] 02/2/2024 09:28

At the current SP, the cost of buying the remaining 4,082,238 shares authorised under the current buyback program would only be £37,260,630.

I'd like to see them raise the authorisation to at least 15% of shares in issue.

Even purchasing 20% of the shares in issue at current SP, they still wouldn't exceed the currently authorised max spend of £97.4M!

[laurence llewelyn binliner] 02/2/2024 09:05

Tempting to go hard on the BB and get a 30% return on your money, but we need our powder dry to keep adding new assets to offset the decline rates, NG down at USD2 will throw up opportunities and I would not want to see any more dilution, we have seen the results of the last 2 rounds..

[johnhemming] 02/2/2024 08:51

If they are trying to do a deal they need to keep their liquidity for that.

[kaos3] 02/2/2024 08:12

Interview is music to.my ears as i completely agree. Which is rare.

Best use of capital.at present is BBs.

Biden created opp to buy some assets cheaply in texas and luisiana.

DEC is striving to create capital to do above. By innovation. Selling assets to fin institutions which pay more. And buy similar for less from the oil and gas industry. And dec running assets for the buyers. I assume earning a fee.

He also confirmed.the share price fall. Not just shorters but redemptions of the funds mostly.

Love it all

Ps interesting aspect.is increasing liquids which i also fully agree with. Better risk profile in liquids plus more flexibility running the company. If needed

[bountyhunter] 02/2/2024 07:57

Thanks for posting the video link RetirementPlan.

[nigelpm] 02/2/2024 07:53

Looks under a lot of pressure. I agree they should be buying back shares with purpose not fiddling around with several thousand like yesterday.

[lord gnome] 02/2/2024 07:39

Positive interview. So glad that we now have a new interviewer. I found the voice of the previous interviewer really off putting.

[leoneobull] 02/2/2024 07:27

Great video. It is clear that he wants to communicate a few things : BBs, a future acquisition, creativity in funding and in maximising value and some of their share price decline is due to redemptions in funds that hold them rather than DEC-specific.

[johnhemming] 02/2/2024 07:26

I don't know when this interview was recorded, but it was published yesterday.



An interesting look at strategy with the comment that they would also like to get cash to buy back some shares. (rather than the trivial numbers they are buying at the moment).

[bazboa] 02/2/2024 06:48

Thanks for that. Good interview.

[retirementplan] 02/2/2024 06:11

New interview with Rusty. Towards the end, seems more BBs are on the cards. The link is on LSE today, at 02:27 hrs.

[1knocker] 01/2/2024 22:50

The divergences are puzzling, but the striking metric is that both sides of the pond the trend seemsinexorably to be downward.

The next few months are going to interesting, not least what happens on the ex d this month.