Diversified Gas & Oil Share Discussion Threads

[lord gnome] 06/3/2017 13:03

I'm in as of this morning. Paid 65p for an opening position.

[crazycoops] 06/3/2017 08:24

FYI, I got an answer from @zygsuzin on Twitter:- Institutional Investor access- Bonds previously issued in UK - Risk of being overlooked on US marketSource - IC 8/2/17

[crazycoops] 03/3/2017 20:10

Specto, do you know why they chose to list in London rather than the US?

[spectoacc] 03/3/2017 08:58

Wonder if the somewhat violent moves round here are due to it being up/down/around the 65p placing price. Assume those in on the placing are in for the long term but would only take a couple of hundred k of sellers.

Still a happy holder here, in for the divi & the long term.

[jitters3] 01/3/2017 13:42

Bought in at 66.50 maiden purchase

[spectoacc] 24/2/2017 07:34

Excellent little acquisition this morning - "The purchase price represents less than a 2 times multiple of forward operating cash flows" particularly stands out, as does the 14% increase in production. All for $1.75m!

[spectoacc] 17/2/2017 13:41

Just read it, reads well.

A few points:

- 101p NAV estimate is based on gas price rising to $3.50mcf - is more like 70p now.
- DGOC gets to pick up producing assets so cheaply as the seller needs someone operating the acreage to maintain retained rights, so they can tap the lower-lying shale at a later date
- CEO & Exec Chairman own 38% of co. GLG & Henderson in on the recent float
- fwd yield estimated at c.6% but could double if full credit line used for acquisitions (much more likely to make smaller, slower acquisitions)
- Trump's corporate tax cuts should help

[spectoacc] 17/2/2017 10:43

Ah ha, ta. Been a few sellers too - but a big stream of small buys.

[bluerunner] 17/2/2017 10:41

Tipped on IC yesterday.

[spectoacc] 17/2/2017 08:14

Too much early morning volume for it to be anything other than a tip somewhere.

[spectoacc] 14/2/2017 08:39

Similar feelings here. Like that they're below the 65p a lot are in at in the placing (though big shareholders are no guarantee of a company's success); dislike the overall market cap. Like the fact they've been successfully going since 2001 (not a new co), dislike that they came here rather than listed in the US, where valuations are usually higher & most of Board are based. And listed on casino AIM, with tiny NMS (3,000 shares, won't be able to get out in a hurry).

Like that they've fallen; dislike that they may well go lower! Taken a "half stake" and will look to buy more if/when they prove themselves on AIM (or perhaps if they go a lot lower).

They're well below NAV but that's hardly unusual, and I've already a big punt on the oil price in my portfolio. But a sucker for yield, and would hope the c.5% planned will quickly escalate with further acquisitions. Could argue "why not buy Shell" if want yield, but cashflow to cover it is much more of an issue at Shell.

Conclusion: seem cheap, but perhaps not outstandingly so, and same feelings re risk.

Edit: good job they didn't call themselves Diversified Oil & Gas or they might have got a dodgy EPIC.

[melody9999] 13/2/2017 08:37

The numbers in the admission document don't like great to me but I'm not an accountant. However I read it operates 7500 wells. With thst sort of quantity already, it is diffcult to see what admission to AIM is going to do to raise profits (and therefore to enable dividend payments).

I guess they can pay off debt and reduce interest charges - but woould I be too cynical in thinking that is the main reason for choosing AIM....and I wonder if the reason for moving from a US listing is that investors over there did not believe the story.

Look forward to hearing the bull case from someone.

[timberwolf3] 03/2/2017 18:19

From Malcy

Diversified Gas & Oil (DGOC) has appeared on the bourse this morning having raised £39.7 million at 65p through Mirabaud.

I met with the CEO and other board members yesterday to get an idea of this what this company does. Confusingly, they don't consider themselves to be a gas or oil company, more a buyer of long term assets in their core areas of Ohio, West Virginia and Pennsylvania and, even more confusingly, intend to pay a dividend with a yield of around 5%.

At present, pretty much all the asset base is proven reserves, although at some stage the temptation will be to have a go at what could be a treasure trove of probable and possible resources. Having said that, there is a list of up to a "magnificent seven" acquisitions on the cards so they will remain busy.

The company has raised $50 million to pay down debt, repurchase bonds and for working capital as above. The raise which is highly credible, is made easier by this company being more of a low risk and solid value asset base play which happens to have a progressive dividend policy based on its reserve base. DGO is worth keeping on the radar screen as it may pleasantly surprise.

[glennborthwick] 03/2/2017 17:58

just read admission document - not sure it can justify tis market cap really.

[glennborthwick] 03/2/2017 17:49

on my watchlist in this trump oil friendly few years

[timberwolf3] 03/2/2017 17:14

[...]

interesting

[gostevie63] 03/2/2017 12:41

From the First Day of Dealings on AIM RNS this morning

Highlights:

* Established, profitable, proven and fast growing US oil and gas company

* Onshore licences in Appalachian Basin, northeastern US

* Total proved reserves of oil of approximately 2,271 mbbl (1,470 producing) and gas reserves of approximately 153,695 mcf (135,402 producing)

* Current daily gas production is running at approximately 26,000 mcfd and oil production is approximately 475 bopd

* Since incorporation in 2001, the Group has never drilled a non-producing well

* Successful track record of sourcing, financing and closing acquisitions

* Well defined growth strategy to grow production through organic and acquisitive means

* DGO's experienced management team and its proven ability to drive operational efficiency creates opportunities for additional value in a low commodity price cycle

* The Board intends that not less than 40 per cent of operating free cash flow will be paid to Shareholders by way of a dividend.

Disclosure: I had a small nibble this morning at 58.6p including costs.

Gostevie