Diversified Energy Share Discussion Threads

[this_is_me] 15/8/2024 15:49

Who actually wrote that dividend headline and why?

[bluemango] 15/8/2024 15:37

You know as well as I do that anyone glancing at a headline saying 'slashed dividend' might, if they didn't know better or check for themselves, assume it was referring to the current payout rather than an historical event. If they've been paying the same amount (29c) for the last three quarters now, that's not the current level slashed but a maintain. It's just lazy and misleading reporting.

[bountyhunter] 15/8/2024 15:13

yes I know :-)

[lab305] 15/8/2024 14:55

bluemango...embittered ? correct and with good reason. However I do believe a 66% cut in the dividend compared with a year ago could be construed as slashed. 50odd p share price is disgraceful. The share consolidation just muddied the waters. Can't be far off being thrown out of the ftse350 at this price.

[theuniversal] 15/8/2024 14:52

Ap5 13.27pm 15th aug

I agree with you that their newly aquired acerage 170,000 acres can be partly sold off to pay of more debt with non-core assets. I remember in january doug kris interview on DEC behalf mentioned debt will be half by end of 2026 ( before recent aquisition) so yeah 3yr sounds about right…

Market not fully 100% on board with DEC S.A.M business model as it is multi layered for those less minded folk to ponder over..

News media alway over headline for click bait.. divy secured for 3yr @29c or more if DEC do very well paying off debt and keeping declines around 10% and building/expanding on third party well closure program..maybe see a special divy in a year or two (wishful thinking)

T.U

[theuniversal] 15/8/2024 14:43

Forgot to say this is on the NYSE not sure if the FTSE does follow it or lead? Sp may creep to lower. Levels on selling keep an eye on the £10 markersupport

[theuniversal] 15/8/2024 14:40

Gap/windows

I think this is an over reaction on the market side of things, thats why the gap/window candle stick droppped on the 14th and 15th on the open but technically it needs to close back up $14.03 (10.91) give it a week or two see where the candles are heading…

T.U.

[action] 15/8/2024 14:17

Wow what a drop

[lorse] 15/8/2024 14:10

I thought the 2 pm (BST) presentation read well, but the market appears to disagree.

[asp5] 15/8/2024 12:27

DEC results at first glance do not look spectacular, however they are heavily impacted by timing effects.

DEC only closed the Oaktree deal on June 7th, so while the debt associated with the deal is reflected in the results, there has been less than 1 month of benefits to EBITDA & free cashflow reflected in these accounts.

DEC have provided the June exit rate of 855 MMcfepd and Pro forma TTM adjusted EBITDA of $584M. Add in ~38 MMcfepd and ~$26M EBITDA uplift from the crescent energy acquisition, then DEC will be on a run rate of ~$610M EDITDA & 893 MMcfepd production. This should translate to a FCF around ~$320M in my view. These would be the highest levels in the history of the company.

DEC are also doing a great job at keeping production flat and minimizing declines. They are also building a large portfolio of undeveloped acreage, which in Oklahoma alone has a value of > $800M that is not reflected in the accounts.

Dec have already stated debt will be reduced (excluding new acquisitions) by $200M per annum over the next 3 years and are on track for 2024. For me a solid set of results that underlines the DEC value play (if that is the basis of your investment). As usual DYOR.

[bluemango] 15/8/2024 11:51

Also - ignore the news item with misleading headline 'slashes dividend'.

Of course they haven't. The quarterly dividend is maintained at 29c, same as previous two quarters.

[bluemango] 15/8/2024 11:48

.... says an embittered ex-holder.

[lab305] 15/8/2024 11:33

Smoke and mirrors. Bad figures dressed up and couched in language to make them look good. It is notable that in all results up to last year's they always put the previous year figure in brackets to compare and that has now stopped. No wonder!

[tsmith2] 15/8/2024 08:03

thin volume hopefully different story this afternoon

[tsmith2] 15/8/2024 07:44

muted response to a good set of numbers

[this_is_me] 15/8/2024 07:17

I'm happy to continue to collect the huge dividend; debt down, number of shares in issue down a bit.

[kaos3] 15/8/2024 07:01

mc is market capitalisation... appologise

[bountyhunter] 15/8/2024 06:55

mc² ? 😉

Divi info added to the top of the header.

[kaos3] 15/8/2024 06:31

ebitda almost equals mc

[grahamg8] 15/8/2024 06:25

Crescent Pass is a new one to me. Rabbit out of hat? Or did I take my eye off the ball? hXXps://www.sharecast.com/news/news-and-announcements/diversified-energy-to-buy-eastern-texas-natural-gas-assets-from-crescent-pass-energy--17059142.html.

EDIT
I think I need a brain transplant, I've got notes on the RNS from 10/7, but forgot all about it.

[action] 14/8/2024 11:26

Result tomorrow

[action] 14/8/2024 11:26

Anyone sipping their toe here?

[grahamg8] 12/8/2024 16:41

My understanding is that there several new LPG plants on the way to allow the US to export their surplus, and that DEC have already quite a lot of pipeline in place poised to take advantage. Perhaps too optimistic but we shouldn't get too gloomy.