Diversified Energy Share Discussion Threads

[scrwal] 30/3/2022 12:29

The problem the last year is that there was decent capital growth only for it to be knocked by by share placings being actioned very quickly and the negative reporting on methane emissions. Consequently the market got a bit spooked and we probably won't see any meaningful rise until after the next acquisition which shouldn't require a placing and also see the minor impact of the minimal increase in well capping which should allay any market misgivings.

The yield is high which the market doesn't like but it is a catch22 situation.

[bluemango] 30/3/2022 11:27

Thanks elpirata.

Sounds good. Used up my ISA allowance now so planning to add more from the 6th. Long term income suits me fine.

[elpirata] 30/3/2022 11:05

morning bm, this is as safe as investing ever gets imo,I've held for over 2 years now & just reinvest the quarterly divis as and when in the sipp, a reliable core holding

[bluemango] 30/3/2022 10:22

I think the point was that the yield is only high because the shares are undervalued. Therefore all other things being equal you'd expect some at least modest capital growth.

[sunbed44] 30/3/2022 10:19

This is predominantly a yield stock with a chance of some capital growth. If capital growth is your priority, there are far better opportunities knocking around.

[aleman] 30/3/2022 10:04

It's hard to believe the shares are kicking around the same price as a year ago when you look at the rise in prices they are selling into over the last 12 months.

[aleman] 30/3/2022 10:00

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[asp5] 30/3/2022 08:48

At the current share price, downside risk is low given the current yield and the fact that most of the bad news is priced in. However there is plenty of upside potential given the recent updates and direction of travel.

Just as an indication if the dividend is increased to 18c this year , a still healthy 6% dividend yield would translate to a 2,27 GBP share price (at current exchange rates). This would still represent a 30% premium to say BP which is currently yielding ~4,3%

I think DEC has addressed all the concerns in a good way and now just needs a little time to demonstrate the tangible progress its making.

[shanklin] 30/3/2022 08:05

Its a shame she doesn't mention more on the actions DEC are taking, at least on the decommisioning front.

[gary1966] 30/3/2022 08:00

So Tempus thinks there will be another increase in dividend this year, bring it on.

[smidge21] 30/3/2022 07:42

Summarised in today's Tempus:

Diversified Energy has been battling to earn redemption in the eyes of the market. The FTSE 250 natural gas producer buys mature wells and extends their life through “new extraction technology and/or refreshing decayed infrastructure on poorly maintained wells”. It extracts gas from a portfolio of about 60,000 wells in the United States, which have a lifespan of 30 to 40 years, and has been built up via a series of acquisitions.

Two potential stumbling blocks have emerged for investors. One is the risk of methane leaks from its ageing wells; the second is decommissioning liabilities as wells become uneconomic to continue operating. Concerns about both have prevented the shares picking up steam in line with the rally in commodities prices.

Last year, the group lost a fifth of its market value after an investigation by Bloomberg found methane leaks, which experts claim can have a more environmentally damaging impact than burning coal, at “most” of the 44 sites it visited.

Diversified argues that it had been undertaking work – which predated the Bloomberg article — to minimise leaks. What about the cost of decommissioning wells? The group has entered into agreements typically spanning five to ten years with the states it operates in, which set out the number of wells due to be retired over the period. With the typical cost at between $20,000 and $23,000 for each well plugged, these agreements are designed to give some surety over how much Diversified needs to stump up each year.

A lowly valuation has resulted in the shares offering a beefy dividend yield, which, based upon a forecast payment of 18 cents this year, would equate to an 11.9 per cent yield at the latest share price. The energy group hedges most of its exposure to fluctuating commodities prices to minimise damage in a downturn. About 90 per cent of production this year has been locked in at the high prices recorded late last year, which bodes well for revenue.

ESG (environmental, social and corporate governance) concerns could still prove an overhang to the shares’ re-rating, but they are worth holding for that income.
ADVICE Hold
WHY The shares offer a generous dividend yield

[gary1966] 29/3/2022 15:06

Bought my position back today, didn't get the top and didn't get the bottom, but got something which reduces the mortgage a little more. :-)

[pro_s2009] 29/3/2022 07:03

Diversified Energy Company PLC

("Diversified" or the "Company")

Investor Presentation

Diversified Energy Company PLC (LSE: DEC) announces that Investor Meet Company will host a webcast on 31 March 2022 at 2:00pm BST (8:00am CDT) with CEO Rusty Hutson Jr. and CFO Eric Williams to discuss the Company's 2021 Final Results and current business.

All are welcome to join the webcast and may submit questions prior to the event via the Investor Meet Company dashboard up until 9am BST on 30 March 2022 or at any time during the live presentation.

The Investor Meet Company platform will automatically invite to the webcast investors who already follow Diversified Energy Company PLC.

For others, Investor Meet Company is available at no cost via:





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[scrwal] 28/3/2022 22:55

ii haven't paid in line with their recent tardiness.

You only get the 3.25p if you have made an election for the dividend to be paid in sterling otherwise it is converted at the prevailing daily rate when received.

[simplemilltownboy] 28/3/2022 18:07

I usually have to wait a few days and generally it's wrong, however IG today appear to have pulled out there finger and only deducted the 15 per cent

[marko60] 28/3/2022 18:06

In the RNS it states the exchange rate at 0.76356p per $ giving 3.24513p per share as against the 3.25p stated.

[sunbed44] 28/3/2022 18:05

Wished had all gone in today so Id have been buying at these prices with all dividends

[sunbed44] 28/3/2022 18:04

Why are Halifax always 2 days slower than the other companies. Nothing in any of my accounts yet.

[lord gnome] 28/3/2022 17:59

The Sterling dividend was 3.25p per share as per the recent RNS. You should have received the full amount in your SIPP without any deductions.

[my retirement fund] 28/3/2022 17:55

Well AJ Bell have credited to my Sip 3.245pence per share. I cannot work out if that's correct. Can anyone confirm please?

[simplemilltownboy] 28/3/2022 17:52

Knocker, agreed just checked my account and today I received my ever dividend on time and sat in the ISA happy days. GLA

[1knocker] 28/3/2022 16:01

I don't think you will regret that bluemango. My largest ever DEC dividend has just arrived today. A few quid more than I had expected thanks to the exchange rate. Very comforting 'ballast' in these volatile times. Today's BHP dividend was gratifying too.
Together the two holdings are doing wonders for the SIPP, especially DEC as the tax treatment is more favourable in a SIPP.

[bluemango] 28/3/2022 15:16

Am now a holder here. Planned LTH and collect the divis.

(thanks, elpirata)

[asp5] 28/3/2022 08:03

Some more context to the recently signed US/EU LNG deal.

US will become the leading exporter of LNG with new capacity coming on stream by end 2022, with significant additional capacity being built for 2024. In Texas a decision on a huge facility is due 2nd half of 2022. It looks like all this new capacity is near DECs central region as well which looks very promising.

hxxps://jpt.spe.org/us-will-lead-in-lng-export-capacity-by-end-of-2022

[sunbed44] 27/3/2022 19:02

Excellent note ty