Diversified Energy Share Discussion Threads

[marksp2011] 19/3/2024 08:03

So the company wasn't aware of any of this material information until today?The tender offer was illegal?Because the share price has tanked, the yield is now too high so we are cutting it to be aligned with peers?There is too much supply so we will double down on productionI would look at the NPV of the additional barrels with interest rates at 7%+Note the intimation that they will be borrowing in the private markets so that will be at 11-14%I don't think Mr Hutson has a shred of credibility. I wonder why the CFO bailed. I was pricing these on a 200c dividend so think I am going to get a haircut

[renewed1] 19/3/2024 08:02

Disappointed with the size of the divi drop but suspect we could see a recovery in the share price. I cant see the shorters liking this.

[johnhemming] 19/3/2024 07:56

It is indeed a long term plan.

[premium beeks] 19/3/2024 07:55

Short term share price pain, longer term a very good hold. Especially if we see a sustained gas price increase.Would be holding off buying any whilst this whirlwind unfolds.

[bountyhunter] 19/3/2024 07:55

Yes it's still a competitive yield to be sustained for a minimum of 3 years with production to be increased by ~15%, debt to be reduced and buybacks continued. It's good that the tender offer has been cancelled as that would have been a waste of company cash in the circumstances. It always seemed a bit odd to have the closing date just after the results. I'd better take it out of the header.

[stevensupertrader] 19/3/2024 07:55

Those who divide $ dividend over the share price in £. is an idiot (excuse my language) only nuts do that 😂 if someone does this way of calculation , no wonder he/she thinks is still not bad

[bulltradept] 19/3/2024 07:51

So, we are thinking a big pay day for those pesky shorts today then...

[skinny] 19/3/2024 07:50

Still a decent yield and (now) hopefully with some clarity going forward.

[rik shaw] 19/3/2024 07:50

Agreed but I was pointing out that 12.5% was not accurate. You can't divide dividend in dollars by share price in pounds ....!

[this_is_me] 19/3/2024 07:49

It looks like a good long term plan and the dividend is still high.

[fordtin] 19/3/2024 07:49

rik - don't forget most UK shareholders will get even less after witholding tax

[hericsaba] 19/3/2024 07:48

Just wait 15 minutes, it will be more than 10%... LOL

[rik shaw] 19/3/2024 07:43

$1.16 (91p) pa dividend against 920 share price is just less than 10%

[leoneobull] 19/3/2024 07:42

12.5% dividend I about 6 to 7 times the typical US dividend . They prefer capital growth, hence the acquisition

[marksp2011] 19/3/2024 07:41

Oh dearThat'll put the cat amongst them.So the tender offer was illegal.....doesn't look like a company in control does it55% dividend cut and a fixed divi to be held for 3 years. Nout said about what happens when the tree years are upI am unable to translate all the word salad into English but it looks like a Company in it's death throesExplains why they didn't try and issue shares in the USA - they would have gone straight into a class action lawsuitI struggle to believe they weren't aware of all this material information prior to the annual results.

[bountyhunter] 19/3/2024 07:40

It's a large acquisition of 122 MMcfepd (80% natural gas) increasing production by ~15% and made while prices are low. Net cost $386m which is why the dividend is reduced but sustained for 3 years. Maybe the best long term strategy with uncertainty reduced.

"In conjunction with the asset acquisition and following the Company's capital allocation policy review, the Board has set the new quarterly dividend to $0.29 per share which equates to $1.16 per year. This fixed quarterly dividend payment will be sustainable for at least three years and maintains a top quartile pro forma yield1, among FTSE350 and higher than a majority of US listed peers, while providing the Company financial flexibility to reallocate approximately $110 million annually of capital towards the other elements within the updated capital allocation framework. When combined with our planned debt reduction through amortization of approximately $200 million in 2024, the capital allocation framework will allow for an opportunity to meaningfully reduce leverage and remain within the Company's stated target leverage range of 2.0x to 2.5x. In addition, the Company will have increased flexibility to conduct a strategic and regimented share repurchase program, while also providing for the opportunity to make accretive acquisitions. The updated capital allocation framework will take effect with the recommended final dividend for 2023, payable in June 2024."

[fordtin] 19/3/2024 07:39

They need to change the slogan to; Diversified is the Wrong Company at the Wrong Time!

[stevensupertrader] 19/3/2024 07:36

Those shareholders that are looking for high div suddenly have their dream wipe off overnight . 66.7% div cut is a big amount .
All the gloss painted by DEC over the many months was coming to roost .
I can see the tender offer won’t fly.

[assagai] 19/3/2024 07:27

Don't know. PI's will view this with disappointment but it maybe becomes more attractive to Instis. We'll see how it pans out soon enough. At this level the new divi is guaranteed at 12.5% pa for three years. That's attractive to NEW investors.
Personally an increase to SIPP will follow.

[laurence llewelyn binliner] 19/3/2024 07:24

So much for my sustainable dividend policy theory.., however, accelerated debt reduction does make a lot of sense..

[kaos3] 19/3/2024 07:21

a man with a plan.... they fixed divi for 3 years. when the majority of the debt burden will be paid off and replacement aquisitions will be made in full plus some.

makes sense to me.

i only expected divi to be cut less. but that could be compensated by the BBs.

if tender offer was a maneuer - it was a brilliant stroke against a falling share price otherwise - change advisers. one never knows what did they do for real

i like this co more and more

glad i have some spare liquidity waiting

[tag57] 19/3/2024 07:19

Wow, the share price drop is really going to hurt today.
LAB305, apologies as you were absolutely correct and did the right thing getting out.

[leoneobull] 19/3/2024 07:18

Tender offer cancelled does make them look like muppets as they fell foul of US laws...despite being American

[nigelpm] 19/3/2024 07:17

Ugly RNS. Slashed dividend...tender off canceled. Big fall would think.