Diversified Energy Share Discussion Threads

[gary1966] 09/3/2022 20:17

FB,

See the trading update announcement of 09/02 for the latest hedge position.

[yupawiese2010] 09/3/2022 20:04

Small article on DEC nothing new for regulars here, but might interest any potential new investors.

[fardels bear] 09/3/2022 19:36

What percentage of production is hedged these days? I've been out for a while.

[1knocker] 09/3/2022 11:30

My average is a couple of tenths below 100. It is always reassuring to see a portfolio position in the blue, but frankly if the share price falls I would put out the flags and buy more. Its the only dividend I have that is ahead of inflation. At the present rate, that may not be for long ...

The future of gas seems assured for quite a while. With the prospects of a steady and gently rising dividend, the share price seems low to me at present levels. If the share price is under 120 when the divi arrives, I can't see anything I like better to put it into than more DEC.

[aleman] 09/3/2022 10:15

I hope to post these less often when markets calm a bit. Here are March contracts from 2023 to 2027. I note the bigger recent rises in 2026 and 2027. Is this down to talk of expanding LNG exports from the US to take advantage of higher priced foreign markets? I gather new LNG plants can take as long as 10 years to plan and build but some expansion of existing plants would likely be rather quicker?


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[gary1966] 08/3/2022 15:37

Possibly targeting the gap on the chart at 115.4p from the 02/03.

[shanklin] 07/3/2022 22:36

Apologies, have corrected my earlier post.

[asp5] 07/3/2022 20:59

DEC have indicated that the dividend will not increase as fast as it has historically but they will continue to increase it (think this was mentioned by the CFO in one of the investor calls if I remember correctly).

The div paid has gone from 2c in July 2017 to 4,25c paid out at end of the month. This is a ~16% compound increase over 5 years.

So plenty of room to keep the div ticking over nicely and to use spare cash to grow/pay of debt.

[sunbed44] 07/3/2022 20:09

Ive not read about it being reduced at all. 4.25c from 4c and a weakening pound v dollar makes it stronger for us on 2 counts.

[gary1966] 07/3/2022 17:22

Shanklin,

Do you mean they will increase the dividend more slowly? I haven't heard any comments from the co about reducing the dividend.

[simplemilltownboy] 07/3/2022 16:48

The appreciation of the dollar against sterling is already increasing the dividend. I'm expecting full year divi of 17 cents, however I won't complain if it's higher. GLA

[shanklin] 07/3/2022 16:21

They've already said they will increase the dividend more slowly than previously planned to facilitate paying down the debt.

[scrwal] 07/3/2022 16:20

If there are any acquisitions in the pipeline then the cash flows from them should be used to pay down the debt whilst prices are high so that any future dividend hikes are affordable when gas drifts lower. Usually such acquisitions have been followed by a dividend uplift but it makes sense to not do this until inroads are made into the financing.

[aleman] 07/3/2022 12:00

If the dividend graph follows the gas prices, I won't care.

[lab305] 07/3/2022 10:33

Aleman it's a shame that isn't a graph of our share price !

[voci] 04/3/2022 18:09

Well good luck with that. I've been waiting for nearly 5 years.

If in that 5 years the price had gone up say 50% would you be disappointed?

When you factor in the dividends that's the sort of return holders of DEC have enjoyed without the share price going up a single penny.

I am in this for the income which has increased since I became a holder.

Pay 109p for this and if held in a sipp you get a dividend of 11.5%.

If in 5 years time the price is 1.09 and assuming no change in dividend you have had a return of over 57%

[asp5] 04/3/2022 11:33

I think the issue holding things back historically has been the market reaction on raising equity (at a discount) to finance growth. This dilutive impact (even though deals were accretive) has been a major drag on the share price in my view. There is a clear recent change to the business model where ABS structures are now being used to fund growth.

Furthermore as DEC demonstrates that the plugging of wells can be achieved at low cost by in house teams and be subsidized by revenue from plugging 3rd party abandoned wells then concerns over this risk will abate and will get reflected in the share price.

[lab305] 04/3/2022 08:52

Well good luck with that. I've been waiting for nearly 5 years. In May 2019 nearly three years ago they reached the dizzy heights of 134 to sell. I was euphoric then but they never again quite reached that point. Now we stand at a miserable 109 or thereabouts at a time when their product is soaring in price. We have had main market listing , change of name , new acquisitions etc etc but nothing has worked . Perhaps they might try making a profit again like they did back in 17 and 18 instead of smoke and mirrors that means you need a degree in accountancy to understand the books.

[apollocreed1] 03/3/2022 23:37

I'm not selling this until around 150p. I can't see a company that is more essential to the US than this.

[w1ndjammer] 03/3/2022 16:50

Gary

i am 50% cash in my portfolio, and looking at the markets

think i will keep it that way for now, so will hold off here.

although this has to be one of the safer stocks.

all the best

WJ.

[gary1966] 03/3/2022 16:10

Well done WJ, looks like you are playing it better than me. Just turned the computer on to see 109.60p, gutted at how big an opportunity it ended up being. If you haven't yet bought back then well done. If you got 7p out of it then also well done.

[w1ndjammer] 03/3/2022 14:17

that makes a 7p Divi for me do i twist or stick.....

WJ.

[gary1966] 03/3/2022 12:26

Just frustrating that I didn't have more conviction in what I thought would happen and leave my orders in at the 112.3p level they were set up at rather than bottling it a little. Hey ho, faith in company is unwavering and makes up a substantial part of my portfolio.