Diversified Energy Share Discussion Threads

[stevensupertrader] 19/3/2024 20:34

CEO Rusty always said in few recent RNS in the last six months that the share price was undervalued and DEC was trading extremely well and!85% of the gas was hedged and enabling DEC to pay the dividend
If DEC was doing so well , why needed to cut 67% of the past declared dividend ?
Therefore CEO Rusty was always lying in past RNS update . Rusty can never be trusted .imo

[marksp2011] 19/3/2024 20:14

Why would anyone buy these?They know of no reason for the share price collapse Really?Not the divi cut or buying more wells when they are clear their is excess supply?So either a deal done in a few days or a lie

[gonsan] 19/3/2024 20:06

Well, not what I wanted but DEC knows most of people nursing loses will hold with the hope of a distant recovery. And many prospective new buyers will not see a 10% outrageous so they might be tempted by the price and good income.
But this yield will also stunt price growth. So stuck around 850-1000 we are I think

[farrugia] 19/3/2024 20:00

i think people forget here that nothing is free. Whenever a dividend is paid this is reduced from the company's balance sheet which reduces the stock price. The only difference now is that more money will be held in the company's balance sheet making it stronger.

[marksp2011] 19/3/2024 19:54

Your listening to what honest hutson is saying.

[stevensupertrader] 19/3/2024 19:25

If that was the caee , 99.99% of the DEC investors are nursing with a loss as 30% dividend or even 20% are unrealistic due to share price has fallen so much that resulted such a high yield . So the next time , should DEC yields 15% or more - you a must dump the shares , - you been warned

[fordtin] 19/3/2024 19:13

"30% yield was always unrealistic."

So, if the share price falls to £3, presumably they'll be obliged to reduce the dividend accordingly.

[justiceforthemany] 19/3/2024 19:08

Come on, 30% yield was always unrealistic.
10%+ with buy backs and a much better balance sheet with positive equity now is far better.

[bluemango] 19/3/2024 18:57

Except that this ignores the yield to current buyers, which I maintain puts something of a floor under the price and stops it drifting lower.

[1knocker] 19/3/2024 18:33

Yes. Considering that a 50% dividend cut was probably the most that (worst) that anyone expected, I thought it would close closer to £8 than £9. I fear that it may well drift down again over the next few weeks.

[bountyhunter] 19/3/2024 17:45

Closed down just over 3%, not great but hardly an unmitigated disaster. There have been larger fluctuations on many trading days over the last few months on no news at all.

Link to the Annual Report:

[fordtin] 19/3/2024 17:37

"a pledge to remain among the best-yielding stocks in the FTSE 350 index."

As they've put a cap on the dividend for at least three years, that seems to suggest they don't expect the share price to rise in the next 3 years and they don't envisage any other FTSE350 companies to increase their yield in that period!

[monte1] 19/3/2024 16:56

A blow for income investors after Diversified Energy Co DEC rebased its dividend was today softened by a pledge to remain among the best-yielding stocks in the FTSE 350 index.

The Alabama-based oil and gas company has recommended a June quarterly dividend of 29 US cents (22.8p), bringing the yield back in line with the historical average of 10%. The shares had been on a market leading 25%-plus prior to today’s annual results.
Diversified said the new capital allocation framework, which will enable it to grow via strategic acquisitions as well as reduce debt and carry out share buybacks, should mean longer-term value creation for its shareholder base.

Since 2017, the company has paid more than $700 million (£550.7 million) in dividends along with approximately $110 million (£86.5 million) in share repurchases.

It said the new fixed quarterly dividend payment of 29 US cents will be sustainable for at least three years and deliver a top-quartile FTSE 350 yield higher than most US listed peers.

Chief executive Rusty Hutson said the dividend recalibration took into account current commodity prices and expected future capital requirements. He added: “We understand the importance of this decision to our shareholders and do not take the decision lightly.”

Despite the price headwinds in the natural gas market, Diversified grew annual adjusted earnings by about 8% to $543 million (£427.2 million) and generated $219 million (£172.3 million) in free cash flow.

The company’s assets primarily consist of long-life, low-decline natural gas wells located within the Appalachian Basin and Central Region of the United States. Examples include the Barnett operating area, which during the early 2000s was the largest natural gas shale play in the US.

Diversified achieved record production and lower unit costs during 2023 but a weaker US gas price has impacted its shares, which fell 44% last year. The stock dropped 57p to 866.5p following the results but broker Peel Hunt continues to have a price target of 3,000p.

[stevensupertrader] 19/3/2024 16:47

87.5cts div on each DEC share

[t 34] 19/3/2024 16:43

what divi will be paid on 29 March ???

[stevensupertrader] 19/3/2024 16:18

Pat not pay

[stevensupertrader] 19/3/2024 16:13

cassini. you are definitely doing much better than me even you started buying on DEC three years ago , I started a year ago in Feb with the placement share at £1.05 , I did average a few times however my started placement shares I bought was much larger in size than the other averaging DEC. Shares that I bought later and my average still at £18.50 ( after consolidation) although I collected 4 quarters of dividends . In short , you are definitely doing much much better than me
I have to pay your back .

[fordtin] 19/3/2024 16:06

Should be easy to spot a DEC shareholder staggering down the High Street tonight. We’ll be the one’s walking like we’ve just been cornered by a randy horse !

[cassini] 19/3/2024 15:09

I just trawled through my DEC trades and divis since I first bought three years ago in an attempt to quantify my loss here and offset the divis against share cost.

Of course this simplifies/sugarcoats the situation somewhat, lost opportunity cost, inflation etc, but keeping it simple and including dealing costs and stamp, my metrics are:

Average share cost: 85.6p/share (in old money), 1712.6p (new money),

Average share cost offset by received divis: 66.05p (in old money), 1321p (new money),

Given the aforementioned, my effective yield going forwards is now 6.9% @ 29c/quarter

Assuming a current share price of 900p, I'm down about one-third on price.

Not quite as bad as I feared and doing better than my GKP shares, but still a dog
;0)

The USP of DEC, the large yield, has now gone though. PTAL beats it easily,

I'll hang on though to see if the share price here can recover a bit in the new normal...

[adg] 19/3/2024 14:55

As Duncan Ballantyne would say “I’m oot” of this amateur & crookedly run pile of keek, shoulda gone when FD went suddenly without “any reason”
1382 sold at 883.9
Hopefully not lost too much monetarily as have had them a good few years so divis been ok but not even gonna bother adding it up - also got decent divi due soon.
Bye doe now and good luck going forward to all.

[bountyhunter] 19/3/2024 14:55

Give it a rest Steven.

[apollocreed1] 19/3/2024 14:49

Is the June dividend going to be the new lower figure of 29c? Thanks

[louis brandeis] 19/3/2024 14:32

So the failings of the tender offer have forced their hand in having to tell the shareholders that the business plan is no longer working in its current form. The yield which was 20% has to be cut drastically. Don't forget it was only circa 20% because the share price has fallen so much.

Big red flag in they should have known the legalities of the tender offer before wasting so much money.

[stevensupertrader] 19/3/2024 14:05

Most shareholders were waiting for today result to prove the shorters got the share price wrong and would be punished but in fact DEC Board was so behind the curve on this .