Diversified Energy Share Discussion Threads

[sogoesit] 30/9/2021 11:46

;-)))
Like I said... no further comment, or opinion, from me.
DYOR

[aleman] 30/9/2021 11:07

Is it a quasi-bond if they are hedging most of future sales but 5-year gas futures have risen 20% from 2.4 to 2.9 in the last year? It's not like the massive spike in spot gas prices but it's still a significant rise and not all sales are fully hedged? Shouldn't the share price be rather higher than the 110p+ it was at a year ago? Surely the sales price outlook must have improved considerably since then if longer futures prices that they are likely to be selling into have risen over 20%.

[sogoesit] 30/9/2021 10:56

Have a look at the youtube link in post 1027, KingBailer.
It will give you a third party view to understand the structure of this company.

(I get being shot as messenger when I say this company is a quasi-bond with very limited capital gains potential so I no longer comment).

Anyway, I'm taking my latest capital gain trade as it approaches 120p, from 105p, in the habitual channel.

[king_baller] 30/9/2021 10:28

Looking for a bit more exposure than parkmead for the current natural gas price explosion, which looks likely to persist most of the winter, and probably resolve early next year when new/current investment comes online. Unfortunately it looks like deg are extremely hedged (prudently due to the company debt), but which is likely to cost a fortune. I hold Meg energy and they didn’t make a profit h1 due to moderate hedging of oil h1 (currently thankfully unhedged). Has anyone got any research on the sums re the hedging here?

[aleman] 30/9/2021 09:48

The UK might be of less relevance (unless you live here!) but its meteoric rise will still be adding to global network pressures. It's still rocketing - up another 10% nearly.

[fardels bear] 30/9/2021 09:36

I only made the comment because I understood the information was all in the thread header.

[aleman] 30/9/2021 09:26

As a new holder, I appreciate the discussion on the dividend. I have the printed currency and withholding tax election forms in front of me now. Thanks.

Natural gas futures still rising - June 2023 contract:


free stock charts from uk.advfn.com

[lord gnome] 30/9/2021 08:10

I know FB. It's boring and repetitive but there will always be new investors dealing with these issues for the first time. We were all new once.

[sogoesit] 30/9/2021 07:58

Good, in my opinion, stock overview of DEC:



Comments also worth a read on the hedging treatment.

[fardels bear] 30/9/2021 07:24

Gary has it spot on and it's the same every time we discuss it

[lord gnome] 30/9/2021 07:18

Sunbed - Gary has it spot on. 15% in my ISA, but no tax deducted for a SIPP. My shares are in my ISA.

[pro_s2009] 30/9/2021 01:09

Link to 1016 is in the header.

[3800] 29/9/2021 19:31

thanks for the replies over dividend payments it's cleared a few things up for me.
3800

[gary1966] 29/9/2021 15:58

It will be 15% unless in a SIPP, when it will be zero s44

[sunbed44] 29/9/2021 15:56

Ta -with ii do you get 15% withheld or 0% withheld

[lord gnome] 29/9/2021 15:50

Sunbed - I use ii for all my sharedealing. Fill out the form and elect to be paid in Sterling. After that, no problems.Everyone needs to be aware that a W8 Ben doesn't last forever and needs to be renewed- every three years I think. There is no warning of imminent expiration. If you miss it you find out when you lose 30% tax on your next dividend, which is what happened to me!

[fardels bear] 29/9/2021 15:44

Thank can I suggest that you move away from Halifax if you want to hold DEC?

[sunbed44] 29/9/2021 15:15

Its impossible to be deducted anything less than 30% with Halifax, irrespective of which type of account shares are held in. End of...

[cassini] 29/9/2021 01:47

Pro_S2009,

If people here think it's legit, any chance of getting the info in my post 1016 into the header - that bank-backed brokers can't/won't reclaim withholding tax on for ISAs on companies like DEC that are listed on the LSE but domiciled in the US?

[sunbed44] 29/9/2021 01:18

CASS - thanks so much for taking the time to put the info together. I'll be on it sorting it out tomorrow so it's all in place for the next dividend payment.

[cassini] 29/9/2021 00:38

sunbed,

Regarding the appropriate rate of tax for non-US holders, read the following excerpt from DEC's 'Investor Resources' webpage:

'IRS Tax Forms
Pursuant to Section 7874 of The Internal Revenue Code, Diversified is treated as a U.S. corporation for all purposes under the Code. Therefore, dividends from the Company may be subject to US withholding taxes, depending on the country of residence of the shareholder, and whether the country has an income tax treaty with the United States. The statutory rate of withholding under the Code is 30 percent, which may be reduced by an applicable treaty.

For non-US Shareholders who are individuals that have not previously completed the appropriate US Withholding Tax Form, Form W-8BEN (or W-8ECI in some cases) relating to US withholding tax for non-US investors should be completed...
...For Shareholders who complete and return the US withholding tax form relevant to them, the rate of US withholding tax will be adjusted to a rate of between 0% and 30% depending on the elections provided by the Shareholder in the Form W-8 and in accordance with the withholding rate under the applicable double income tax treaty (for example, 15% under the US-UK treaty).'

Note the very last line, in brackets. You do have to fill out a WBBEN to get any tax reduction though. I hold DEC in an ii SIPP and pay 0% withholding tax, so can't comment from personal experience with ISAs, but the DEC information seems to back up a 15% rate of tax for an ISA with a W8BEN - I can't think what other financial instrument their bracketed example can refer to.

[cassini] 29/9/2021 00:30

3800,

Regarding electing to receive the dividend in GBP Sterling, it can be done and the method is detailed in the Investor Resources page of DEC's website:

'GBP Dividend Currency Election
Shareholders who wish to receive their dividends in GBP sterling must complete and return a GBP currency election form to Diversified’s registrar, Computershare. Shareholders who hold their ordinary shares in uncertificated form in CREST may also make a dividend election through CREST.

Shareholders should note that elections can be made only in respect of their entire shareholding and partial elections will not be accepted.

Shareholders who wish to receive their dividends in GBP sterling should complete and return the currency election form to Computershare Investor Services Plc, The Pavilions, Bridgwater Road, Bristol, BS99 6ZY no later than one business day following the Record Date for the applicable dividend payment.

Shareholders requiring further information relating to currency election forms may contact Computershare on [phone].'

[sunbed44] 28/9/2021 20:31

Who do you buy your shares with and do you only get stopped 15% withholding tax

[lord gnome] 28/9/2021 20:27

That is just plain wrong sunbed44. Someone needs to sort out Halifax.