Diversified Energy Share Discussion Threads

[fordtin] 13/10/2021 19:34

I guess journalistic agenda motivated assasinations take precidence over charting. DEC was just in the process of forming it's golden cross;




" Golden Cross

The golden cross is a chart pattern created when a shorter term moving average was below a longer term moving average, but it crosses above that moving average. This is typically seen as a bullish signal.

The golden cross is mostly used with longer term moving averages. It's an especially strong signal when the 50 day moving average crosses above the 200 day moving average. "



N,B. there are charts in this post depicting SMA and WMA.
WMA generally forms a cross earlier than SMA. A ctoss of WMA may not be followed by a cross of SMA. DYO and any other caveats which might protect my @se!



For the authors of the agenda motivated assassination article, anyone who is inclined to accept their agenda and any climate protestors who frequent this board, please read and consider very carefully, every issue covered by the website in the following link;





fordtin's personal opinions -

the planet Earth is quite capable of looking after itself after the human race is extinct.

The greatest danger to the human race is the exponential growth of the human race.

Recycling is a complete waste of time whilst the human population is expanding exponentially.

Reducing carbon dioxide at ground level will eventually kill off flora and consequently forna.

The only humane solution to the preservation of an environment capable of sustaining human life, is birth control.

The other options would seem to be famine, water shortage/quality/contamination, disease/virus and/or war.

The probabillity of any one of the above mentioned options triggering the rest is very high, imo.

Please don't clog this thread with personal attacks on the messenger, but feel free to discuss on my currently dormant 'off topic' thread;

[bountyhunter] 13/10/2021 17:54

NY after the LSE close...

[aleman] 13/10/2021 17:38

HH gas futures more than a year out have not fallen much and might even still be rising. Here's a new high for November 2023:


free stock charts from uk.advfn.com

[sunbed44] 13/10/2021 17:28

So DEC may now have big problems in acquiring new assets as part of their growth plans.Rusty needs to put this issue to bed toute suite and get back on the front foot.NB the 2 role model O&G companies with incredible ESG positions are ZPHR & SAVE

[sunbed44] 13/10/2021 17:24

Rusty needs to start off with a global 'helicopter view' and drill down from there into DEC.But a big issue here is around the bigger companies on the share register current and possible fire ones. The II's with strong ESG strategies will not be allowed to hold or buy shares with negative carbon neutrality.As an example SAVE lost a very large II about 18 months ago for 2 reasons- they did not have a robust ESG strategy and also the II was decarbonising their investment PF.Additionally, the majors will not divest (sell) any of their assets that they are currently getting rid of and there are $100bn of those for sale at the moment to companies who do not have strong carbon neutral plans.

[marksp2011] 13/10/2021 16:23

I think it is all down to Guardian readers in cahoots with MMs shaking trees.

[redtom1] 13/10/2021 15:53

Mondex, that a great and balanced post, thanks.

[deadly] 13/10/2021 15:46

.... not just to "greens" but to any thinking person concerned about the climate, but if it's not balanced it's not credible.

[farrugia] 13/10/2021 15:33

Its Bloomberg Green - you should get a hint from the name that it was designed to appeal to greens.

the fall was brutal - the climb looks like its going to be slow though ha

[deadly] 13/10/2021 15:33

Mondex: "On the other side, the criticism of this piece of journalism should not be used to bash the press. Whilst there are plenty of examples of poor behaviour by them, without an independent 4th estate we could not hold our politicians or businesses etc accountable. Look or Russia or China or N.Korea."

There is still room for responsible journalism, which this is not, and gives them a bad name, like the Daily Mail.

[deadly] 13/10/2021 15:28

"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."

Really, who knew that?

[mondex] 13/10/2021 14:59

Like ADG I too have worked in the O&G industry for over 40 years. I am not happy that my shares in DEC plunged by over 20%, especially because of an article in the press. However, I think there is a lot of over-reaction in the market & here. Firstly, I don't think the the article/film is a hatchet job, nor do I think the message it sends is reasonable. This is not like VW where emissions testing was falsified representing a systemic misstatement of data. The 40 odd wells tested by the journalists showed undesirable methane levels of emission. Going from the particular to the general & inferring DEC's operating model is flawed because some of their wells emit methane is not logical. From DEC's side they have far too many wells to check frequently & I suspect the data handed over to them when these wells were bought is not too accurate. However, DEC's business model is not necessarily flawed & there is already an analogue for it in the O&G business. This is the operation of so-called stripper wells, which only produce <20 bbls/day & have lost all their initial pressure so are produced using beam pumps (nodding donkey). These proliferate across Texas & Oklahoma. They were sold off when their operational costs became uncommercial for the original oil co's & are now owned & managed by small co's often the farmers who own the land. DEC's approach of aggregating low producing wells in areas seems theoretically sound, the trick is in managing costs. Rusty Hutson & the original owners of DEC are not "oilmen" in the sense of knowing how to explore, drill & produce oil or gas, they are businessmen - Rusty was a banker - but they lived in oil country & understood a lot about managing such business. They saw an opportunity to optimise the return on these low producing assets & have successfully grown the company for "smart well management"

Will the Bloomberg report cripple DEC? I doubt it. After the initial fright investors & stakeholders will review the company & most likely give it a clean bill of health. Pretty much all industrial co's have leaks etc & it is both the consequence of this & how it is handled that will determine how such a co. is treated.

On the other side, the criticism of this piece of journalism should not be used to bash the press. Whilst there are plenty of examples of poor behaviour by them, without an independent 4th estate we could not hold our politicians or businesses etc accountable. Look or Russia or China or N.Korea.

[farrugia] 13/10/2021 14:59

if the directors bought a sizable chunk that would give the message!

[sunbed44] 13/10/2021 14:54

Need a powerful capital markets day next month. Rusty boy will be under a lot of pressure on the day and I hope he delivers a strong pitch before throwing it over to the guest speakers x

[cassini] 13/10/2021 14:43

...and so begins the slow share price dribble back up.

Anyone selling their DEC shares on the basis of this partisan hit piece has capitulated to green propagandists. It's what they wanted people to do.

They can't stand the idea there's 50+ years of gas in those wells.

They probably aren't sure which toilet to use either.

Whatever. I added yesterday and I'm holding.

[farrugia] 13/10/2021 14:11

The future is natural gas and nuclear. Solar on home rooftops may make sense in some communities. Industrial wind sites are being stopped in the US. "Wind is dead" in progressive states like Vermont. Solar and wind farms require 300-400 times the amount of land to produce the same energy as gas plant.

Investor Shift From Fossil Fuels Leaves Surging Market to Smaller Players

[bountyhunter] 13/10/2021 14:07

Manipulative also springs to mind. This has happened before with a similar poorly research piece from a student some time ago given maximum publicity after which the share did subsequently recover. I trust no-one connected with the article benefitted financially as it was predictable that DEC would take an instant hit as soon as such a venomous article was published on a global financial media outlet such as Bloomberg.

[scrwal] 13/10/2021 13:46

Fardels - arrogance also springs to mind. Neither are complimentary towards Rusty or whomever did the selection nor do they reflect well on current company thinking on the whole thing.

[janhar] 13/10/2021 13:37

Interesting fact - DEC own 62,000 wells!! They had a lot to choose from so I wonder what criteria they used to select the wells they visited

[bountyhunter] 13/10/2021 13:23

RIO is at risk from the Evergrande situation. If Evergrande go bust without sufficient support from the Chinese government being the largest property company on the planet then China will not be importing so much iron ore from RIOs operations for new property development, and even if not a slow down in China could result in that outcome anyway. Of course RIO and other minors have already taken a hit from the developing situation so it depends on your medium to longer term view.

[fardels bear] 13/10/2021 13:16

The word naive therefore springs to mind

[johnhemming] 13/10/2021 13:14

I am pretty certain the journalists did not select the wells to visit at random.

[scrwal] 13/10/2021 13:10

The article is misguided and sensationalist to support the Green cause but it does raise some issues.

The number of wells reported on is 0.05% and leaks were repaired but you can argue they were only fixed because the journalists had visited. Also the pictures were of manky seemingly unmaintained wells with insignificant/uneconomic production and such a picture may not be realistic but how many wells like this does the company actually own and how many are scheduled for capping in say the next 5 years at $20k each, even we as shareholders have no idea.

The current levels of well capping seems to be on the low given DEC is currently working on end of life projections of 2095. It currently doesn't have the cash to have a major ramp up on capping.

I do think in my simplistic way there is a solution to the problems which is as follows - there is definitely a bank of productive wells still to be worked heavily and these should be used for the normal course of business. There should also be those that may be productive over longer terms which may still be laying in a dormant state and it is some of these which DEC should ring fence for capping purposes. By this I mean put them into full production now and all cash generated is allocated against initial starting costs and then annual costs of production with the surplus being solely used to cap wells. There will be an effect on margins as the increased revenue is negated by costs and presumably the 2095 end may be 2090 or earlier but it shows intent by the company and also alleviates fears over the cash financing of well retirements.
Ironically higher gas prices increase the viability of such a scheme - Higher prices make a Greener world pioneered by DEC.


I personally wish I had sold out when the price dropped to 113p but didn't and even did a small top up but my break even is 101p so that probably explains my inaction.
If I didn't have a holding I am not convinced I would buy shares based on the cash liability for capping, the business model with hedging etc is sound but I have a nagging feeling that the capping issue is being pushed some way down the line.