Diversified Energy Share Discussion Threads

[riverman77] 27/9/2021 13:36

If you look on the latest presentation on the website it shows the increase in PV10 of the assets to have increased by around 1bn to 2.5bn as result of the increase in gas prices, while the unrealised losses from hedging to be around 500m. If prices stay as they are then the company should be around 500m more valuable than under the previous calculation. Markets clearly not woken up to the value here.

[scrwal] 27/9/2021 13:33

Gary1966
5 October 2020 announcement - up to $1bn over three years.

[gary1966] 27/9/2021 13:14

I am not aware that there is an expiry date on the Oaktree funds. Can't recall having seen anything in an RNS.

[scrwal] 27/9/2021 12:52

Presumably the gas prices have made any acquisition more expensive. It might be best to wait for a reversal when some assets may be sold cheaply as some producers won't make money on them whilst DEC would and will have more cash having hedged at higher prices - could be a flurry of moves just before the Oaktree funding period expires.

[gary1966] 27/9/2021 11:56

IG all sorted now and at a better exchange rate which is a bonus.

apollocreed1,

No as JH says, it is a non cash item on the accounts other than they have lost out on revenue. It would be fair to argue however that as a consequence of the lower revenue they have less cash for acquisitions and so indirectly will have to take on more debt or issue equity. However currently they have lots of headroom in this regard and will be hedging at higher prices further out now I would assume.

[johnhemming] 27/9/2021 11:25

>Does it sound feasible that DEC will announce another fundraising soon in order to raise cash to cover the losses on its hedging contracts as the natural gas price went up?

No.

DEC have the gas available for the hedging contracts and if the accounting rules were sensible the increase in value of this gas would be offset against the increase of liability on the hedging contracts and they would balance each other out.

[apollocreed1] 27/9/2021 11:16

Does it sound feasible that DEC will announce another fundraising soon in order to raise cash to cover the losses on its hedging contracts as the natural gas price went up?

[aleman] 27/9/2021 10:24

UK September 2022 natural gas futures contract has doubled in price since the start of June.



The September 2023 contract is up over 60% in the same time frame.



They're both up about 30% in the last month.

Nymex September 2023 has reacted less but is still up about 25% since June and 10% in the last month.



Should DEC shares be taking more note of these recent big rises in futures prices?

[bullsvbears] 25/9/2021 12:05

Gary 1966 post 974:-

Final paragraph NOTED.

[bountyhunter] 25/9/2021 08:46

I make the amount that should be received with 15% deducted as

2.88×.85 = 2.448p/share

[gary1966] 24/9/2021 19:10

IG Corp actions have responded and they are on the case. They sorted it last quarter and no doubt will again, just tiresome to have to go through this every 3 months.

Sadly they will get the EPIC dividend wrong at the end of the month as well no doubt and I will have to get them to sort that again as well.

BullsvBears, I have said many times if they are withholding 30% when you have a valid W-8BEN then raise a formal complaint and involve the ombudsman as they can't do it. The rules are there for everyone, including the Lloyds stable.

[fardels bear] 24/9/2021 18:47

Spent it already..

[redtom1] 24/9/2021 18:37

HL paid in full today

[theapiarist] 24/9/2021 18:04

Cassini/Plutonium

Thanks for your responses.

I hadn't reckoned on the 15% USA tax. I shall have to take up the extra 2.65% with my broker.

[plutonian] 24/9/2021 14:46

The withholding tax situation is explained in the header.

You have incorrectly calculated the tax rate of 17.65% as the dividend is $0.04 - 30% = $0.028 you have been charged.

[cassini] 24/9/2021 14:44

TheApiarist,

It is listed in London but tax domiciled in the US.

You will pay 15% tax in an ISA.

I have no idea why then you are getting charged 17.65% but that extra 2.65% is for something else - to do with your ISA provider I presume?

[theapiarist] 24/9/2021 14:36

I hold my shares in an ISA and am being charged $US tax of 17.65%.

Since DEC is primarily listed in London I, perhaps naively, assumed that there would be no withholding tax.

Am I wrong?

Apologies if this has already been discussed but I would appreciate clarification from anyone with experience of this stock.

[mo2550] 24/9/2021 14:30

HL slowest to pay the divi - normally wait a further 18 days after DEC have paid out ....zzz

[sunbed44] 24/9/2021 13:39

Halifax pay my dividends at 100% just had my RIO today and had SEPL at full as well. I spoke to them and they said they pay full and up to holder to declare.

[scrwal] 24/9/2021 13:04

Div just put in my ISA now.

[fardels bear] 24/9/2021 12:45

Nothing from HL yet

[t-trader] 24/9/2021 12:22

Cheers scrwal

[scrwal] 24/9/2021 12:22

Interactive tend to credit $/€ divs in the afternoon.

[t-trader] 24/9/2021 12:14

I’m with III and never have any tax withheld.

Only issue is I haven’t yet received the dividend today.