Diversified Energy Share Discussion Threads

[topazfrenzy] 19/3/2024 08:47

The share price will jump when NY opens imo

[bluemango] 19/3/2024 08:47

Yield at current price and exchange rate is 10.31% for anyone buying now, in a SIPP. And not too many other investments available where you can see that kind of income continuing for at least 3 years.

Should limit any further downside. Most of the pain was already priced in.

[bountyhunter] 19/3/2024 08:46

I prefer Richard Marks.

[lab305] 19/3/2024 08:46

Well Tag we didn't have to wait a year , just 5 days.

[marksp2011] 19/3/2024 08:41

Are you sure you want to be buying anything Oaktree are selling?Just a thought, Howard Marks isn't famous for leaving something for the next man

[bountyhunter] 19/3/2024 08:40

The Oak Bloke is quick off the mark this morning!

DEC-king the opposition!
FY2023 full year results

[topazfrenzy] 19/3/2024 08:35

Dividend still over 10% yield and likely the share price will rise with debt reducing

The 30% yield was ridiculous at the end of the day, although I did still want it lol

[bountyhunter] 19/3/2024 08:31

It's only 3% down, I'm not sure that the shorters like the new long term strategy. To be fair a dividend cut was priced in with the yield at 30%. Buying accretive assets while the gas price is in the doldrums seems like a reasonable strategy.

[fluffchucker1] 19/3/2024 08:29

Could be a lot worse. Acquisition a positive.plugging business going gang busters. Balance sheet solid and most importantly co now has choices. Certain to be attractive priced assets available and suspect some serious BB activity to come.

[fordtin] 19/3/2024 08:27

Hats off to the short sellers, they were right and I was wrong.

[meanreverter] 19/3/2024 08:26

It seems that, in the acquisition of the Oaktree assets, DEC is spending ~54% ($386m) of DEC's market capitalization to increase DEC's production (or production per share) by 15%. That is, per unit of production increase per share, the deal costs DEC 3.6 times as much as buying back its own shares.

I haven't worked out the corresponding ratio in terms of reserves, EBITDA, or other measures of value; but I don't expect it to be dramatically different.

[bulltradept] 19/3/2024 08:15

Not really much of a fall tbf.

[bluemango] 19/3/2024 08:04

Uncertainty dealt with, investors can now plan their income with rather more certainty and it's assured 3 years at least.

And as I said yesterday, still a decent yield once it's all been digested and settled. The boil has finally been lanced and the company has a clear and sustainable trajectory going forwards.

[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