Diversified Energy Share Discussion Threads

[mondex] 14/3/2024 14:35

US midstream firms bet big on gas infrastructure

Despite the downturn in natural gas prices and surplus storage levels, US midstream companies have allocated more than $10 billion to upgrade and expand their gas infrastructure this year, according to East Daley Analytics. Analysts say the investments reflect the industry's confidence in long-term demand for gas infrastructure, driven by the ongoing expansion of the liquefied natural gas export market.
Full Story: Hart Energy (3/11)

[blue square] 14/3/2024 10:06

Share price holding up reasonably
well, equivalent to £9.80p before
ex divi date.

[lab305] 14/3/2024 09:01

Fair enough. I hope that you get your money back. It was hard for me to sell at a loss but I had lost all faith more than anything else because of the 2 buyback schemes.

[stevensupertrader] 14/3/2024 04:07

Below I have given an analogy basing on someone who had invested all or almost the funds on DEC , therefore running out of funds to invest more and DEC is falling and dropping more than half . One can wait unless an investor does need it or realises it .

[stevensupertrader] 14/3/2024 03:59

If a share kept falling is similar to business stock that is obsolete . Therefore one can keep in the portfolio at original buying price similarly to obsolete stock on. business at cost value.
Both at present or current market cannot realise at the original bought price or cost . There is similarity in my analogy
However , this is up to individual how he/ she treats it . Individual can hold on the shares till one dies and realise by the lawyer death with a much much reduced cash distribution . Similarly to business in admistration .

[1knocker] 13/3/2024 21:46

Thanks for that, blue square. I guess I was just being idle and did not look!

Stephenst, you make the cardinal error of eliding valuatio and profit/loss. The DEC shares in your portfolio have a cost ('capital committed') and a value (current price X no of shares held).A profit/loss is realised/incurred only when those shares are sold.

The difference between cost and current value tells you the profit/loss you COULD realise/incur if you sold today, but a pofit/loss is not ACTUALLY incurred unless and until you sell.

The important questions for the investor are (1) the liklihood that the holding in question will increase or fall in value and (2) whether some other holding would have a more favourable risk/reward ratio. The answers to those questions is the basis upon which one decides whether to sell or hold, and if one decides to sell, whether and where to reinvest the proceeds of sale. Both of those are of course matters of judgment, upon which opinions are likely to differ - if there was an absolute, correct, answer, there would be no market!

Business acounts have some similarities. That is why free cash flow is usually more instructive than headline profit/loss (which depends upon the accounting conventions aplied eg whether you 'mark assets to market' or show them at cost). What ultimately counts though, at least in the case of trading stock, is the difference between purchase and disposal prices (or rather, if you want to stay in business, the difference between dispoal and REPLACEMENT price of stock in trade!), not what price current stock is shoewn at in the accounts..

[tag57] 13/3/2024 20:32

Lab305- I agree with some of your points about management/ Rusty as he should have communicated a lot better over the last 2 years, culminating in the stop start US share launch.
I would say that the gas hedging is not there to protect the share price but to ensure the debt repayments and divi are secure regardless of price volatility.
As you say, let’s see where DEC is in a year, if they have cut the divi / missed debt repayments etc and the share price is either around still this level or much lower you can tell me “I told you so”

[stevensupertrader] 13/3/2024 20:08

The business will come to the end of the road 😂 ie it will go under

[stevensupertrader] 13/3/2024 20:04

1knocker - if you ran a business using your method ie that no one loses any money until one sells . I can definitely sure your business will go under . For example say you buy stock to sell in your business , Those stock that cannot sell over a few years , year after year, you just carry them forward . Including stock that cannot sell due to obsolete. in your books you record the stock at cost value. Each time , your business needs funds , you inject funds into the business. Eventually one fine day , you have so much obsolete stock in your business and you find yourself running out of funds to buy more stock . Although your books show a huge profit but you have no more cash to inject into the business 👩‍8188;

[laurence llewelyn binliner] 13/3/2024 18:24

Q4/FY results and the next dividend 21st next week..?

[blue square] 13/3/2024 17:54

20th March
I am sometimes surprised people
dont read the RNS's

[1knocker] 13/3/2024 17:40

Does anyone know the date when the conversion rate for the dividend will be announced? it is usually about a fortnight before pay day as i recall.

Lab, remember that no-ne has made a loss (or a profit) until he sells. Until then, he just has a finite sum of capital committed and, of course, at risk.

[bountyhunter] 13/3/2024 17:05

Thanks for posting the link Ramellous, I've added it at the top of the YouTube section in the header. Nelly will love the preceding adds which it doesn't seem possible to get rid of!

[lab305] 13/3/2024 15:34

Tag57 I had over 1m of these and old habits die hard. Even so as you alluded to I never wore rose tinted spectacles and grew increasingly uncomfortable. I still read the thread and merely answered Steven's question. Predictably that draws criticism from holders such as yourself. Instead of that why not rebuff some of my points ? On your point about the hedging it has patently not protected the share price which many posters argued with me about. I feel vindicated as events have unfolded and was correct to sell at 90p and 72p even at a loss. My problem was that I believed Rusty at the results last year and waited too long for his predictions to materialize.

[laurence llewelyn binliner] 13/3/2024 10:18

#Ramellous, well worth 48 minutes of time, thanks for sharing here, he breaks down in a nuts and bolts style what the company does, how they do it, and why with a good piece on the ARO side ..

[tag57] 13/3/2024 09:46

Lab305- through 2022 you commented a lot about the hedges in place and how the company missed out on the high gas prices at the time. Now that gas is at a record low (or has been) given the time of the year do you see the hedges as a positive, even temporarily? I am not a fan of BBs as even if they support prices temporarily the share price will still find its natural market price eventually. Plus I hold for income rather than capital gains (although I don’t like losing capital, even if just paper losses)
I don’t disagree with your comments about management and their wrong steps over the last 2 years it is more about how you keep coming back to this board and making the same comments over and over.
Bitterness isn’t a good look or a good mental place to be in for a long period.

[tunley] 13/3/2024 09:11

Agree with Tag57 and I'm down £44k so painful but lifestyle still okay and my own fault. I'm sure however that the CFO departure was nothing more than sour grapes after he was passed over for promotion

[ramellous] 13/3/2024 08:19

Has this recent interview with the president of communications at DEC been posted on here
Apologies if I missed it

[tag57] 13/3/2024 08:13

Lab305, you may have lost more than most but this also depends on your capacity for losses, has it affected your lifestyle, are you losing sleep over it?
I get the impression not. Bitterness just looks amateurish and childish.
I am down well over a £100k here which hurts but I don’t blame anyone but myself. I chased the divi thinking it is safe and bought as the price dropped. I think the divi remains safe and the share price will come back to £1equivalent so continue to hold.
My choice therefore no-one to blame but myself if it turns out a poor decision.

[blue square] 13/3/2024 07:26

The share has run out of steam,
Both here and the USA.
Likely to drift down, dont see
any upward pressure at the moment

[bountyhunter] 13/3/2024 07:20

Volumes in London and New York were about the same yesterday with both being low.

[lab305] 13/3/2024 07:18

Yes but they are the main points. The decommissioning debate rages on but is extremely complex. I am obviously bitter about the failure of this company to defend its own share price. It cost me more than most.

[tag57] 12/3/2024 22:39

Lab305 - anything else negative you can think of?

[lab305] 12/3/2024 20:04

Add to my post earlier the untimely departure of the cfo, the significance of which is extremely underrated.