Diversified Energy Share Discussion Threads

[asp5] 27/3/2022 15:15

Article just reinforces that DEC should be in a strong position to acquire non-core assets of the drillers at good valuation levels given the hesitancy to take on/provide additional debt/financing both from the drillers and wall street.

[shanklin] 27/3/2022 12:35

But where is the oil and gas to come from

[asp5] 25/3/2022 10:21

Positive news for DEC. US & EU sign LNG deal to curb reliance on Russia.

[asp5] 25/3/2022 10:13

Last year the first acquisition announcement of 2021 came out towards the end of April - given recent announcements that prepare the ground for our next acquisition, I have a feeling the next positive news flow will not be too far away .....

[fardels bear] 24/3/2022 22:07

By the late 2070s I'll be pushing up the turnips.

[scrwal] 24/3/2022 13:35

The ARO model is for a period of 75 years. It doesn't seem to assume that wells will actually last until 2095 as it an overview of cash generation and its uses so theoretically production can be accelerated and in doing so the Pre-Fund is built up quicker and is then run down over a longer period as wells dry up - I suppose there is nothing to stop wells running dry by the late 2070s so long as the funding has been built up to cover decommissioning and the day to day running costs with any FCF then being paid out as a much reduced divi.

Accounting wise the company will always have problems regarding hedges when prices are rising above existing hedged production - it is only a theoretical paper adjustment having no impact on cash generation etc.

[asp5] 24/3/2022 11:57

I think the ARO issues and DECs plans to deal with it e.g. inhouse teams, costs offset by using free capacity to create additional revenue etc. show risk mitigation/mgmt plans are in place. It just needs a little time to show successful results out in the field. Should not be long before tangible evidence becomes available.

I think accounting treatment (of acquisitions, hedges etc.) is a binary topic - either it is legal/correct or it is not. These are audited accounts that DEC is publishing.

I think the heart of the issue is the fundamental difference in business models between traditional drillers and DEC and the normal suspicions around anything different/new (although DEC has only been in business for 20+ years).

[boystown] 24/3/2022 10:20

FWIW, the IC concldes with:

"Diversified noted a changed operating environment for a gas producer, as the world rapidly needs new supply. For broker Peel Hunt this means higher cash profits this year, at $486mn. Longstanding questions about accounting – including gains on bargain purchases and decommissioning liabilities that assume the old wells will last until 2095 – still remain, but the company's model remains in fine form and the consistent cash flow and dividends show this. Buy. "

[asp5] 24/3/2022 10:05

Cenkos have also put out a note titled "Robust results with strong outlook" with a confirmation of their 1,68 GBP price target. A more detailed update will follow in due course.

hxxps://www.cenkos.com/research-portal/#/portal/cenkos-securities - free to register

[fardels bear] 24/3/2022 09:27

Needs a subscription

[asp5] 23/3/2022 21:42

write up & buy recommendation in IC

[aleman] 23/3/2022 16:01

New highs in shorter term contracts are spreading to medium term. Longer end still steady.

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[tom111] 23/3/2022 12:33

Thanks k4r and sunbed looks like the divi is still paid during good and bad times,seems good to me.

[sunbed44] 23/3/2022 10:59

Last ex dive date was 5/2/2022 paid 28/3/2022Last year the next one wend ex div on 27/5/2021and was paid 24/6/2021

[tom111] 23/3/2022 10:46

Can anyone inform me when it is x divi and and when paid,thanks.

[1knocker] 23/3/2022 10:05

Its a good point about the difficulty of following the figures for DEC. The combination of disclosing a 'loss' and a 10% dividend is unsettling to the uninitiated, to whom it screams 'too good to be true - avoid'. That said, I am not sure that it looks much different whether the share price is 110 or 130. I see no reason why DEC should not gradually move up a bit (perhaps not as much as if it still had the now enticing words gas and oil in he name to reassure the uninitiated!) and hold the higher price,

Be that as it may, I look forward to the beer market on 28th.

[imnotspartacus] 22/3/2022 19:36

Nice secure juicy divi

[bountyhunter] 22/3/2022 17:29

Very true FB, I've been thinking the same.

[lab305] 22/3/2022 17:24

Gary I'm with you and sold around 230k shares yesterday afternoon and today. They were all bought last week @ average 107.5 so did well. The plan was to sell slowly over the next few days up to the results which I anticipated would look terrible , and they do. Headlines such as " Diversified Energy's annual loss widens despite revenue hike " do not look good to the uninitiated ! I still retain the bulk of my holding for income and have given up on capital gain.

[cassini] 22/3/2022 16:12

The question is, whether we are in a Bear Market Rally?

I know the FTSE isn't technically in a bear market but some of the US indices are/were and they're all arguably showing signs of a distribution topping pattern.

If so then trading the rallies is a valid strategy.

[sunbed44] 22/3/2022 15:39

Read the thread again bud your completely missing the gist of it all

[fardels bear] 22/3/2022 15:26

Have you heard the TINA theory?Where else do you invest your pension, your ISA, any other cash you are lucky enough to have held on to?There is no alternative to the stock market for most people and that's why it bounces back from every man made catastrophe.

[gary1966] 22/3/2022 15:14

sunbed44,

Given the FTSE has risen 11% and the lesser indices more since the 7th March where do you see the balance of risk in the short term with all that is going on? Personally I would say at the moment Geo-politically we are at the highest risk in my lifetime personally. Inflation, interest rates the list could go on. What has happened in the last two weeks to justify such a rapid rise in the markets?

Genuinely interested to hear yours and others thoughts.

[sunbed44] 22/3/2022 15:08

Agree but getting timing right and the bit of luck you need doing that is more luck than judgement. Geo-political issues will swing SP's like this way more than any chart can predict.