Diversified Energy Share Discussion Threads

[sogoesit] 02/11/2021 11:02

Looks like Saint Greta has cursed methane now... or was that the Archbishop of Canterbury?
Proof, if anyone needed it, that this caper is a cult if not a full blown religion!

Roll on higher gas prices for winter... forget about the poor.

[lab305] 02/11/2021 10:53

"So predictable" ...and you're not ?

[marksp2011] 02/11/2021 10:48

The BP analogy is false.

BP created that issue. They took a risk for profit and it went sour. To be honest I am a little surprised the company survived.

It was akin to choosing to pump radioactive waste into the water supply as it was cheap and maximised profits. Did I feel sympathy for them?

No.

Did the Americans milk it? yes as the Brits would if they had a chance.

[farrugia] 02/11/2021 10:22

I fear all those tens of thousands of wells that Diversified has acquired will turn out to be a liability long term. The ones who profited from this are the big companies who offloaded non-profitable wells to this company.

'The main concern for me is who is held liable for the 200 year old tail of leaking wells?'

HINT: How did the USA treat BP on this horizon leak?

[marksp2011] 02/11/2021 10:21

This unlines the risk around DEC and why the yield is so high.

Rule changes take time to introduce but, tightening of regulation will increase costs and so devalue the NPV of producing assets.
It will also make new "legacy assets" cheaper to acquire.

The main concern for me is who is held liable for the 200 year old tail of leaking wells?

[thequestors] 02/11/2021 10:15

The Washington Post has a detailed article.
hxxps://www.washingtonpost.com/climate-environment/2021/11/02/biden-methane-rule-epa/
It actually reads pretty well for DEC, I believe.
I would assume the DEC knew this was coming as the EPA has had discussions.

"Frank Macchiarola, senior vice president for policy, economics and regulatory affairs at the American Petroleum Institute, said the industry supports a “a cost-effective rule” and has been working with Biden officials since the presidential transition to help craft the EPA requirements."

[joedjoed] 02/11/2021 10:01

from the Guardian

"A new Environment Protection Agency rule that regulates leak detection and repair in the oil industry repealed by Donald Trump will be restored and for the first time applied to new operations in gas, including regulation of natural gas produced as a by-product of oil production that is vented or flared"

"New rules, due to be phased in, will require companies to oversee and inspect 3m miles (4.8m km) of pipelines, including 300,000 miles (480,000km) of transmission lines and 2.3m miles (3.7m km) of lines inside cities. In Boston alone it is estimated that 49,000 tonnes of methane leak each year"

[joedjoed] 02/11/2021 09:57

Do we have any of the details of the proposal? If it's the case that this forces the closure of wells then we have a problem. If it's a case of proper monitoring and leak prevention then DEC are probably already satisfying these requirements. What seems dissonant is that there are subsidies available for running the small gas wells that are most likely to be impacted by these regulations. It would make more sense to switch the subsidy to methane leakage detection/prevention.

[sunbed44] 02/11/2021 09:57

Added 50k around 104p

[adg] 02/11/2021 09:47

Greta Thunberg is a puppet and a pawn (not to mention a particularly irritating and very silly little child)
Saltaire - feel for you, think of the divi
fwiw it may well bounce big style after COP

[gary1966] 02/11/2021 09:36

Everything that is being said is exactly what was said back in 2014 and what was said has not been carried out, in fact it has accelerated in the wrong direction. Talk is cheap and that is all that politicians and world leaders are, talk. Same promises and conversations will still be being had in 1,5,10,20,50,100 years time. I don't warm to Greta Thunberg but she is right when she says that politicians are pretending. Out of interest how did the 120 statesmen get to the summit along with everyone else?

[carcosa] 02/11/2021 09:33

Fall is likely due to forthcoming Biden/ EPA statement on methane reduction in O&G industry

[saltaire111] 02/11/2021 09:22

Typically I bought in here yesterday!

Always get my timing wrong!!

Salty

[sunbed44] 02/11/2021 08:57

Over-reaction yet again. I found the bottom the other week when the damning report re well closures took share price to mid 90's. Will try to spy the bottom of this dip too and grab a few more. Growing dividend and all that good stuff. Be interesting to hear what's said at CMD soon.

[linz22] 02/11/2021 08:37

Too true, but Biden might not be around for much longer, ie. beyond next year's mid-terms, perhaps.?

Meanwhile, the POO, and energy costs in general, are only going in one, upward, direction.
Bring on the next, severe, northern hemisphere winter...

[johnhemming] 02/11/2021 06:39

There was a bit of a blip yesterday, but we should remember that DEC hedge a lot of their production so the spot price is only really a guide. My charting system, however, reports a changed trend on the first contract. I will see if I can find a way of providing this in an image form.

I can get this as a public link:


I will see if I can do it as an image.

[lab305] 01/11/2021 21:56

NATURAL GAS
5.186 -0.240 -4.42%
Gas down heavily today after over 6 last week. Winter approaches though !

[spangle93] 01/11/2021 08:13

As a customer of VOD for 20 years until 2 days ago, I can share that "customer service" at VOD is an oxymoron. Business-wise, I can't add anything to your analysis.

As per diversification in the O&G sector, DEC is an extreme, on the basis that it doesn't explore or develop, but manages and maintains. Capex requirements are almost exclusively for acquisition, rather than drilling wells or constructing facilities. Standard "high yield" companies in the sector like Shell and BP are not as high yield as previously after the CoVid oil price crash last year, even though product prices have bounced back. There are a number of smaller, dividend-paying companies with good cash flow, which appear to have potential for dividend and share price growth. Of course, this isn't advice, but JSE, SQZ and I3E (please ignore village idiots on the ADVFN thread) are 3 examples, where future performance isn't dependent on one well striking oil/gas.

[cassini] 01/11/2021 00:29

dsct,

You might look at Raven Properties (RAVP) cumulative irredeemable preference shares. It's a Russian company so that's why I suppose the pref shares pay well (perceived risk). They're 12% issued yield at 100p face value and they're nearly 120p now, so yielding 10%. It's a warehousing firm. Seems to be doing well.

The only thing I'd say about your portfolio is that you have shares in a variety of sectors but you haven't diversified within all those sectors (energy, housebuilding and telecoms off the top of my head).

Of course it all depends on your risk profile, but I try and own at least two different companies per sector.

DEC for instance seems low risk because of its hedging, but you never know what might be coming.

Have to say, VOD is out of favour at the moment. I mean, you could say the say about IMB, but we all know why IMB is in the naughty corner - ESG funds and slowly declining tobacco sales. What's wrong with VOD though? We might ask the same question about BT. Maybe it's just that whole sector that is out of favour at the moment - I haven't really looked into it.

[sunbed44] 31/10/2021 23:29

Not with Halifax SIPP!