Diversified Energy Share Discussion Threads

[yupawiese2010] 10/2/2022 18:49

DEC - sees tremendous potential in growing its plugging services for hire by other clients.

Article in respect of the "plugging Company we have recently acquired & the services offered.

[loafingchard] 10/2/2022 14:45

The market likes the reduced probability of dilution, as do I .

[asp5] 10/2/2022 07:40

Gary, Apollo - in terms of the hedging prices, you also must factor in the acquisitions and the hedges DEC inherited including their tenor, price and % of portfolio they represent. My hunch is that this has a far bigger impact than discounts to henry hub ...... This effect will naturally unwind over the coming months as hedges roll off

[shanklin] 10/2/2022 07:13

AIUI, the aim of the hedging is not to maximise profits... ...it is to provide certainty to lenders that DEC will be able to meet its interest and debt repayment obligations. It is this guarantee that will help DEC minimise the interest rate payable on this debt.

If it didn't hedge, it would be behaving like the many spivvy UK energy companies that have gone out of business over the last year through offering fixed prices to consumers whilst having no idea at what prices they would be buying in gas and electric.

[apollocreed1] 10/2/2022 05:17

@Gary1966 - I'm also disappointed at the hedged prices. From August 2021 until the present, US Natural Gas prices were between $3.90 and $5.87 - a lot higher than DEC hedged at.

[gary1966] 09/2/2022 10:28

Does anyone know if it has been stated what the discount to Henry Hub prices is for the gas produced from the Appalachian basin? It would potentially explain why I am always a little disappointed at hedged prices when maybe I should be quite pleased.

TIA

[asp5] 09/2/2022 10:22

Solid operational update. Purchase of Next LVL Energy and selling its excess service capacity to provide plugging services to others should help to subsidise/reduce DEC's own exposure re ARO's. Will be interesting to see how this plays out.

$2.6 billion of federal funding in the states in which DEC operates is a material market opportunity going forward for DEC.

[yupawiese2010] 09/2/2022 10:02

Rusty Hutson talking to proactive

[farrugia] 09/2/2022 09:43

which do you think are some of these good companies deadly? It would be interesting for me as an initial point of research given from someone holding the same stock as myself.

[3800] 09/2/2022 09:18

I wouldn't say this is very volatile Lab but looking at a 12 month chart it is down, and hasn't kept up with the oil and gas sector big boys with shell is up nearly 50% and BP even more

[deadly] 09/2/2022 09:17

Good TU today.
The low price is because of the broken UK market. So many companies are doing well but their price has been hammered over 6 months or more.

[lab305] 08/2/2022 23:12

It's only 10% because the share price is too low not because they are doing so well. I have many of these in an ISA which are underwater. The dividend is just paying me my money back. Ironic that such a stable and reliable share in your view is so volatile and prone to shocks. On those rare occasions it manages to reach a decent price it never stays there.

[1knocker] 08/2/2022 21:08

Make the most of it lab. If all my holdings were giving me a steady 10%+ pa total return and rising, year in year out, I should be a very happy fellow. In fact I would probably offer my services as an investment manager, at a monstrous salary.

[aleman] 08/2/2022 15:46

Medium and longer term contracts still showing moderate strength

3-year


free stock charts from uk.advfn.com


5-year


free stock charts from uk.advfn.com

[lab305] 08/2/2022 15:29

As soon as there is any strength in the price they are sold . So frustrating. It cannot even reach the 112p disastrous placing price and no progress in three years. There is much complacency because the dividend is good but they should be trading at much higher levels than this.

[gary1966] 07/2/2022 22:40

Sounds as though they may have a few more deals in the pipeline based on this comment:

We look forward to pursuing additional ABS transactions this year given a favourable commodity price backdrop and increasing investor demand for oil and gas ABS financings underpinned by high-quality assets coupled with a proven operator.

Either that or they really are making a big push this year to get everything on a fixed rate.

[redtom1] 07/2/2022 16:35

Today's RNS does possibly indicate further largish acquisitions not requiring equity.

I'm looking forward to Wednesday's trading update.

[1knocker] 07/2/2022 14:28

I hope DEC is not too hasty with another acquisition. I do wonder if gas prices will come down faster than many expect.

With gas and oil prices at current levels it is true that some renewable sources become more economic and the build out rate should increase a bit, but popular enthusiasm for the green dream is going to melt away faster than a snowflake in the sun with petrol and heatting costs continue to be sky high, especially as high energy and transport costs inflate the price of just about everything else too, including food.

My guess is that the politicos will change their tune and start talking about 'an orderly transition'; more gas will flow and the crude will begin to gush in the USA and elsewhere. Gas is quicker to bring on stream than oil, so its price ought to fall first. Increased western hydrocarbon production will also help in the spat with Putin if his oil and gas revenue can be cut a bit, and reliance on Russia as a supplier is reduced.

Greta will whine, but she and her ilk would be whining anyway. Ultimately, their bleating counts for diddly squat unless it happens to chime with the politicos' intentions.

[asp5] 07/2/2022 12:54

2wild - The spread to 10Y tsy is ~3%.

The credit rating is only BBB (lowest investment grade). Also remember the bank needs to make a margin and any investors in the note also need a return - so think it would be difficult to get materially lower than 3% given the current market environment.

[simplemilltownboy] 07/2/2022 12:33

Scrawl, this screams another acquisition with oak tree. I've not done the sums yet but I think DEC have similar amount to the oak tree fund, it's going to be another busy year

[scrwal] 07/2/2022 12:29

The removal of the dilution threat lifts the main anchor that was dragging the price down.

Does this hint at another sizeable acquisition soon perhaps.

[2wild] 07/2/2022 12:23

Is it just me or does anyone else think these rates look excessive, with fed funds at 0% and benchmark US 10 year bonds at 1.9%. Corporate bond yielding over 3.5% are considered junk.

[cwa1] 07/2/2022 12:08

For what little it is worth. I have checked with iDealing and, disappointingly, they are unable to process W8-BEN forms full stop.

I can also confirm iDealing don't charge SD on purchases

I would move them to YOU in a SIPP over time BUT they seem to charge SD which is a pity.

There doesn't seem to be much consistncy out there!