Diversified Energy Share Discussion Threads

[simplemilltownboy] 19/3/2024 12:14

Just working out the dividend if you have a SIPP. With 15 per cent WHT is 75 pence per annum. 89 pence without the tax per annum. On this basis I would expect the share price to drop a bit further. Above is based on 1:30 exchange rate. GLA

[stevensupertrader] 19/3/2024 12:12

This will be a falling knife - anyone catching it now will be sliced into two days

[lab305] 19/3/2024 12:12

Unbelievable reporting. Who writes this rubbish ?
marksp2011 it wasn't you was it? Seems to have about the same level of understanding of the facts.

[my retirement fund] 19/3/2024 12:09

This will be £5 soon

[stevensupertrader] 19/3/2024 12:07

How can DEC said div of 29cts declared for the last Qtr up sharply from 4.38cts MISLEADING IMFORMATION.
DEC never want to say that 29cts declared was consolidated 20:1. , therefore 1.45cts of the old share down 67% in actual fact .
That is why this batch has been issuing misleading RNS for months without telling the full comparison fact - very economical with the truth

[drk1] 19/3/2024 11:58

For long term holders such as myself, today's news in respect of the divi cut is a bit of a short term shocker. BUT for new investors, insti's etc, today's news echoes opportunity, stabilty and debt reduction which IMO, will drive new money in and the share price North. Waiting for my entry point to add whilst the carnage is in full swing. ;-)

"Diversified Energy Co PLC on Tuesday reported a sharply higher dividend amid a swing to a profit on the back of commodity derivative settlements, while revenue edged up. The Alabama, US-based oil and gas production company focused on the Appalachia and central region in the US said it swung to a pretax profit of USD1.00 billion in 2023 from a loss of USD799.5 million in 2022.

Diversified Energy shares fell 8.0% to 849.68 pence each on Tuesday morning in London.

Revenue, including settled hedges, climbed 2.2% to USD1.05 billion in 2023 from USD1.02 billion. Notably, Diversified Energy reported a net gain of USD178.1 million on commodity derivative settlements in 2023, compared to a USD895.8 million net loss in 2022.

Natural gas production edged up 0.3% to 256.4 million cubic feet from 255.6 the year before. Natural gas liquid output jumped 12% to 5.8 million barrels in 2023 from 5.2 million barrels a year prior.

The company posted a final dividend of 29 US cents per share, up sharply from 4.38c a year ago. This brings the total dividend to USD1.16, much higher than 17.25c paid for 2022.

Diversified Energy added that it is recalibrating its fixed dividend payout to align with the current equity market dynamics, peer trends, prevailing commodity prices and expected future allocations.

"We understand the importance of this decision to our shareholders and do not take the decision lightly. By focusing our capital allocation on a fixed dividend level that is competitive with the industry and the market at large, we are prioritizing the acceleration of our balance sheet de-leveraging, with over USD200 million in debt repayments during 2024, creating financial flexibility and a strong foundation to maximize long-term value creation for our shareholder base," it said.

Looking ahead, Chief Executive Officer Rusty Hutson said: "Diversified's differentiated stewardship business model will thrive amid the backdrop of rising global energy demand, consolidation in the US. energy markets, and enhanced expectations for sustainably produced energy."

By Tom Budszus, Alliance News slot editor"

[stevensupertrader] 19/3/2024 11:17

DEC share price at old money is 42.5p

[apollocreed1] 19/3/2024 11:13

Well the shorters were right in so far as the way to make money in this stock is to be short.

The management have treated shareholders disgracefully by cutting the dividend.
Cancelling the tender offer adds incompetence on top of selfishness. How can you trust them when they change their mind so often and potentially are telling untruths when they issued previous RNS announcements?

[marksp2011] 19/3/2024 11:11

Falling share price and impact on the price of gas in the groundI smell brown skivvies

[bluemango] 19/3/2024 10:57

Stevensupertrader filtered for trying too obviously to talk his book.

[stevensupertrader] 19/3/2024 10:56

Soon yield will be back up to 20% again , the rate share price is falling today . 😂

[cassini] 19/3/2024 10:54

Hmmm...

Even with the last divi in the bag and a bit of trading to reduce my average purchase cost I reckon my effective yield is now only 5.5%, plus I've had a haircut.

I don't know my total return on DEC over all the time I've held it but I'm absolutely sure it's still significantly negative.

The only reason I have to hang on now is if the share price recovers.

Too early to say yet how that will go.

[stevensupertrader] 19/3/2024 10:53

See have been informing you on this board months ago - if you and those that turned a blind eye or covered your ears and refused to listen at that time , then you have yourself to be blamed.
Every thing in the past many months DEC CEO and Board were just trying to steady this sinking ship but failed badly so far even tender offer was not properly and legally consulted

[premium beeks] 19/3/2024 10:47

Yes, contrary to popular opinion early this morning, the shorts had it 100 percent right!

[mondex] 19/3/2024 10:44

Whilst I accept this should put the company back on track it is a gut punch to those, like me, who have been invested for a long while, looking for a reliable income provider. Despite reinvesting my dividends I now have a total return of -42%, with 3 years of dividend payments currently approximating around 4% to look forward to. So, for me, & I suspect many others, the choice is to hang on hoping the share price growth will return my original investment or crystallise my loss & sell out. Not good enough!

[1knocker] 19/3/2024 10:42

I am afraid so, bulltradpt.

But the past is the past. We can't change that. For holders, our capital has been committed and that fixes our return on it.

I try to remember that every top up is a separate purchase, whether it is a top of an existing holding or a new holding, rather than an opportunity to reduce my average. A top up does not alter the return on a previous purchase, it is the purchase of a return on new capital committed.

Thus if the share price falls to the point where I can again purchase (a now much safer) 12% return, that will be attractive to me. My regret lies in the 5% return at which the capital I have previously committed is locked in!

I think it very important to assess the merits of any 'top up' as though it is a new holding (which in substance it is), without regard to the cost of previous purchases. A current purchase price is neither more nor less attractive because one previously bought at some other price. The same goes for sales. A sale price is 'good' or 'bad' according to whether, looking forward, one can deploy the proceeds of sale better elsewhere. The price at which one bought, and whether one has made a profit or a loss, is completely irrelevant to that equation.

The mental discipline becomes much easier if you think of any any purchase as a new holding. I wish my account shoed each purchase (and dividend received on each purchase) separately, as DEC1, DEC2 etc! It takes effort to avoid thinking in terms of averages when everything is consolidated. I am not led into thinking in terms of 'averages' purchase prices (up or down) when looking across separate holdings, eg DEC and BATS !!

[lab305] 19/3/2024 10:40

bluemango ..I expected them to sell whilst they still had some money left.

[marksp2011] 19/3/2024 10:38

Cold snapWtfSpot prices for delivery today/tomorrow soar.Completely irrelevant to anyone who isn't a spot trader.

[stevensupertrader] 19/3/2024 10:38

DEc is now a falling knife and even under £8 later on - who the hell wants to buy ?
This is just a one way to administration or someone buying it at a fire sale price .
Banks that made loans to DEC is now very worried as falling share price affects DEC assets value

[topazfrenzy] 19/3/2024 10:37

Storm in a tea cup today

People complaining about a dividend yield of over 10% is laughable, better they use the money on buybacks and reducing debt

[lab305] 19/3/2024 10:36

marksp what do you mean hindsight ? I have been negative about Dec for ages culminating in selling all of my considerable holding months ago. I was honest and have not financially recovered yet but am well on the way . I was dam right on this one but should have sold out sooner. What beggars belief is that posters still believe what they say . " The dividend is safe for 3 years" The tender offer didn't last much more than 3 weeks ! Unbelievable.

[topazfrenzy] 19/3/2024 10:35

'Gas prices surge 20pc as cold snap hits Europe'

[stevensupertrader] 19/3/2024 10:35

Definitely missed it - under £8. - the way it is moving .

[marksp2011] 19/3/2024 10:34

It has been called off already. It wasn't legal in the US of A. Or so Honesty Huston says