Diversified Energy Share Discussion Threads

[fardels bear] 13/10/2021 13:00

Any human who believes that we can destroy the planet is both misguided and arrogant..We can ruin it for ourselves but we cannot destroy it.

[theapiarist] 13/10/2021 12:43

Joed

Totally agree re the possible downside to RIO. However, they will still remain profitable at much lower iron ore prices and they do have other strings to their bow albeit less significant.
My concern about DEC is not about their profitability when allowed to conduct normal business - far from it. The worry is that they will be impeded in this by the ever more militant green lobby. We see it all the time in UK with XR and IB. The anti-fracking lobby over here "forced" the government of the day into an ill-informed blanket ban on fracking and the refusal of new licences in the North Sea and west of Shetland. Preferring instead to rely on imports from Russia and the Middle East!
With a left wing vice-president calling the shots in US, who knows what may happen over there. Articles like this and many more like it to come are not aimed at informed critics, such as are to be found on this thread, but at the ill-informed who misguidedly believe that they are saving the planet.

[marksp2011] 13/10/2021 12:12

Filled one toe of one boot
15k at 99p

[joedjoed] 13/10/2021 12:11

Interesting. RIO makes sense and is untrendy as iron ore so far from highs. At the risk of sounding too enthusiastic abut DEC (I own both) my take is that we are in a period of secular trend in energy prices. Especially Nat Gas. Lack of investment in finding new sources of it (UK Govt turned down Shell licence for a new field in Northe Sea), but a critical transition fuel. For iron ore my concern is that we may go into a slowdown driven by china and the environmental imperative for not finding new iron ore sources is not the same. So supply not constrained, demand possibly is. Opposite for NG.

[joedjoed] 13/10/2021 12:04

@Prof John. Fair question. I think the answer is less about whether an in-house team can plug a well better technically (but why not...they have just invested in their own kit which makes sense to me) but whether hitherto stranded assets have received any maintenance at all until DEC acquired them. I think this is a point articulated by the DEC team: that they, in actually running the wells for commercial gain, are better custodians of environmental issues than the previous owners who have stopped operating the wells and probably never monitor them. There has to be a plausible argument to be made here. If this is the case then DEC can position themselves as THE most environmental option: "we are squeezing the last drop out of a vital transition fuel source AND we are keeping things tidy and we AND preventing retiring these assets becoming a liability of the taxpayer". To be plausible in this my sense is they need to talk more about maintenance, the metrics, report leakage. ie make everything completely transparent. Then there will be nothing for shlock-horror reports to discover. It may also mean that they need to retire more wells. If they have 70,000 wells and the average life is 70 years then my intuition is that the number of wells to be retired every year needs to be in the hundereds rather than dozens. But I am not an oil man so hope that this issue can be explained on the next call. Irrespective, this is a company who takes the costs of eventual retirement seriously. As I read their accounts and following a pervious correction, they have provisioned USD 500million in their accounts for this. Its on the balance sheet.

[farrugia] 13/10/2021 11:59

RIO TINTO you mean?

[theapiarist] 13/10/2021 11:48

JoedJoed

Many thanks for posting that link yesterday.

The minute I read it I got on to my broker and sold my 70,000 holding for 1.11

Am now reinvested in RIO. 10% divi and zero tax in an ISA. Fewer uncertainties than DEC - apart from Xi Jinping!

Good luck to you.

[11_percent] 13/10/2021 10:37

kasos,

I have an RSI of 31.....so, as you say.....not THAT low.

[11_percent] 13/10/2021 10:32

Yup.....fill your boots time coming up...

[kaos3] 13/10/2021 10:32

on the plus side - there was a gap opened at 125

[kaos3] 13/10/2021 10:31

I am observing 14 RSI on 1D

not even bellow 30

which has happened before (in 2020)

I am waiting for it - before adding

just imho

[1knocker] 13/10/2021 10:27

So it could be bonanza time for purchasers if we are patient, outsize? And no need to worry about moving to a USA listing for a while either!

[11_percent] 13/10/2021 10:27

It will re-test 95.....will it go lower???

[spawny100] 13/10/2021 10:24

Agree Donald. If Directors are not buying now it might suggest they're more worried about the content of the Bloomberg article than they're admitting?

[professor john koestler] 13/10/2021 10:14

Thanks john'

I think in house plugging can have both advantages and disadvantages.

Integration can save costs but doesn't necessarily automatically mean the job performed is a better one. Pressure could come from management to state the well is plugged when perhaps engineers know better. I'm not saying this is the case here but we have seen it all happen before on a much larger scale.

[johnhemming] 13/10/2021 10:09

I have the anecdotal details from the Bloomberg report and the reports from Diversified themselves. I do not have, however, a third party assessment of the situation.

I do agree with DEC that this is a job best done in house and not subcontracted.

[professor john koestler] 13/10/2021 10:06

"and Diversified do a better job than many in how they handle the plugging and maintenance of wells."

How do you know?

Do you have any statistics or comparisons with other companies?

TIA

[outsizeclothes.com] 13/10/2021 10:01

95(+) needs to hold as a bottom.
Below that and there's no chart support until 80, with 60 as the next support level.

[kaos3] 13/10/2021 09:50

it is a pressure on the financial/corporate system in order not to cooperate with DEC (and similar) I am afraid.so article can have some temporal consequences in the real life.

but at some point bellow 100p there is a huge opp to buy a known fact - DEC

all imho

[johnhemming] 13/10/2021 09:46

The problem with issues relating to climate change is that it is quite dependent on scientific knowledge and many journalists don't have enough scientific knowledge (or knowledge of accounting) to write accurately.

Personally I don't invest in coal for environmental and ethital reasons. However, the world needs gas (today) and Diversified do a better job than many in how they handle the plugging and maintenance of wells.

[donald pond] 13/10/2021 09:43

You would often expect director buys at a time like this

[lab305] 13/10/2021 09:37

Yes you are right. Having read the article again it is very biased and obviously picked the most damning photographs they could take. I haven't bought all back but enough for decent income and cheaper than I sold for yesterday.