Diversified Energy Share Discussion Threads

[redtom1] 12/10/2021 10:24

I sense an over reaction. Markets often do that. 11.5% is a bit steep (£100m+).
I did sell some of my holding in DEC over the last coupe of days but I've been nibbling back in the 111p+ area. Can't buy much volume but fine for me.
Of course the story is a little concerning but does it justify this level of fall? not so sure.

[joedjoed] 12/10/2021 10:24

I think there may be more to this than "wokish diversity"
There are a few issues that are difficult. The delay to well capping, the low costs of capping, attention drawn to the 80mln subsidy. But the biggest problem is that it may be seen as too complex to really understand, a basket of decrepit assets that regulation may shut down, toxic for investors, difficult to keep momentum up for a full US listing. What will Oaktree make of it?

[riverman77] 12/10/2021 10:20

The issue of liabilities from plugging old wells came up a couple of years ago - there was a very bearish blog doing the rounds that did a lot of damage to their share price at the tine. The company has since provider detailed figures on its liabilities.
I believe the methane issue is something new. Either way they company needs to address this with a comprehensive response or the share price will drift.

[brucie5] 12/10/2021 10:17

*wokeish diversity regs*
?????

Maybe read the link.

[skyship] 12/10/2021 10:15

Compliance with wokeish diversity regs causes a 10% drop? :)

[brucie5] 12/10/2021 10:13

Sounds like a wake up call to the company to get its house in order. Thus far I have liked the story here as one of decent ESG, use of gas as a transitional fuel, and no further drilling of wells. Meanwhile, the high dividends make it an outlier as an income stock. Thing is, if it's going to be listed in the UK it might find itself, rightly, the object of greater public scrutiny. So again, I hope the company seeks to address the issues here, which seem to be around methane emissions from poorly maintained wells, and capping of depleted ones. Happy for them to use some of that cash to do this, otherwise their business case may crash like the share price today.

[grim] 12/10/2021 10:11

Thanks Joe

[joedjoed] 12/10/2021 09:42

This is the problem:

[spawny100] 12/10/2021 09:41

I don't see a drop like that just due to RSI/technicals no. Placing perhaps?

[gary1966] 12/10/2021 09:38

With regards the listing issue this has been about the most shareholder friendly company I have ever owned and so I really can’t see the co doing anything to kick the shareholder base, who have supported it since listing, in the goolies or female equivalent, so that I can’t be accused of not being PC.

[gary1966] 12/10/2021 09:34

RSI was over cooked and is why I left a sell order at 130p yesterday but sadly didn’t quite make it. Was tempted to sell just before the close as the RSI was coming off but hey ho I will look forward to the increase in dividend which I reckon could move up to 18-20c range. Strengthening $ can add a further boost for good measure. Further out the co is going to be drowning in cash if it has taken some of those hedges at $3.25 which I suspect it has.

GLA

[melody9999] 12/10/2021 09:33

Sunbed - its the listing issue isn't it? Company needs to give re-assurance to UK shareholders that they have no plans to discontinue a UK listing, regardless of what they do in the US.

[spawny100] 12/10/2021 09:32

Wow that's a bit brutal. Weird. Any ideas?

[sunbed44] 12/10/2021 09:24

Wonder why 7% drop. I dont know of any reason unless its just a bit overheated

[bountyhunter] 11/10/2021 16:36

ongoing then rather than shoved under the carpet :)

thanks for posting the response rt

[redtom1] 11/10/2021 15:05

Not surprisingly the company is unable to comment on this Listing issue as it is market sensitive information.
This is the response I received:
"While I can assert that the Company continues to evaluate the most appropriate method and timing of such an activity, I hope that you can appreciate that the nature of the same would require a more public disclosure before I am able to speak any more specifically on the topic."

[bountyhunter] 11/10/2021 14:02

There is already a US OTC listing (see post 1140) so could a complete US listing simply mean the OTC listing + an NYSE listing?

[redtom1] 11/10/2021 13:32

I too have been trying to understand what the implications are to the UK listing if they go for a 'complete US listing' as opposed to a dual listing.

Obviously a dual listing is exactly as it sounds.

But does a 'complete US listing' mean a UK delisting or can a company have a 'complete' listing in both countries that is somehow considered differently from a dual listing?

I suspect that we are all reading too much into the wording of one response. I suspect that there are different US listings available IN ADDITION to being listed in UK. But, on the other hand, given this is a 100% US business, why would they continue to list in UK if they don't need to?

Clarity from DEC would be very useful.
In fact, I am going to ask the company myself. Will report back with any response.

[bountyhunter] 11/10/2021 13:13

Ok fair comment, nothing decided, I didn't take much notice of that catchall comment in that post at the time as I probably interpreted that part differently.

[scrwal] 11/10/2021 13:10

bounty - see redtoms post 1143.

[bountyhunter] 11/10/2021 13:07

Possibly DEC could move back to AIM if they list in the US but they only moved from AIM to the main London market in May last year.

[gary1966] 11/10/2021 13:05

I wonder if 130p will be tested today by our friends over the water.

[bountyhunter] 11/10/2021 12:59

Really, I've never read that in any information from the company but I stand to be corrected if there is anything from DEC on that, do you have a reference? The quote posted by Aleman above from 14/7 seems to suggest otherwise.

[fardels bear] 11/10/2021 12:31

I think there has. He was talking about discussions taking place with advisors regarding either a dual listing or a sole USA listing. It'll be a few pages back on here.