Diversified Gas & Oil Share Discussion Threads

[dunderheed] 31/1/2021 19:52

Not AEX FB, he's lost his "patience" with them!

[fardels bear] 31/1/2021 19:51

Just about everything in there though, isn't there?

[pro_s2009] 31/1/2021 14:49

DGOC in there


Malcys 2021 bucket list.





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[scrwal] 29/1/2021 13:38

The market seems to be very jittery with acquisitions this year so would be happy with sensible ones on the smaller side so as to not rock the boat as it were given the sometimes strange stance taken by the market makers.

[simplemilltownboy] 28/1/2021 19:54

I don't expect any fireworks with this share, just great dividends and a slow but steady rise for the next couple of years. The update was excellent as expected and consistent. I'm hopeful of a large acquisition in H1 with Oaktree. Fingers crossed. GLA

[podgyted] 27/1/2021 23:48

Henry Hub looking quite perky at the moment! Up over 40% from a year ago.

So their comment that:-

"Improved pricing outlook provides a constructive backdrop as the Company consistently layers in additional hedge protection in future years"

.... looks totally valid and the dividends will continue at these high levels.

A couple of good acquisitions and the capital value may fly - who knows.

[fardels bear] 27/1/2021 17:48

Try the other DGOC thread.

[yellowstoneadvisory] 27/1/2021 17:16

FY results on 8th March. Webinar with management on 10th at 6pm Register here:

hxxps://us02web.zoom.us/webinar/register/7216117313646/WN_u6UZAWCXTXaT_8uqF9rPEg

[yellowstoneadvisory] 27/1/2021 17:15

FY results on 8th March. Webinar with management on 10th at 6pm Register here:

hxxps://us02web.zoom.us/webinar/register/7216117313646/WN_u6UZAWCXTXaT_8uqF9rPEg

[mattybuoy] 27/1/2021 16:06

I just listened to the long CEO interview on the website Media page. Very down to earth.

This really is a no-brainer isn't it.

[pro_s2009] 27/1/2021 14:38

Diversified Gas & Oil

An operations and trading update from DGO this morning which confirms that 2020 results are in line with market expectations and are due on March 8th. We can expect record full-year average daily production of ~100 Mboepd, up 18% vs. 2019 which consists of legacy assets of ∼69 Mboepd consistent with 2019 as yet again the Smarter Asset Management process continues to offset natural declines within the portfolio.

DGO continue to deliver on key metrics, full year cash operating expense was $5.58/Boe a 15% fall on 2019 and FY total cash expenses which includes G&A of $6.93/Boe down 10% on 2019.

In addition they made in 4Q 20 accretive bolt-on acquisition of five gross unconventional wells in Ohio for $8.4 million or ~2.6x cash flow and robust hedge portfolio provides cash flow and dividend stability with ~90% of 2021 natural gas hedged at a weighted average floor price of $2.66/MMBtu. Finally, improved pricing outlook provides a constructive backdrop as the Company consistently layers in additional hedge protection in future years.

Commenting on these accomplishments, CEO Rusty Hutson, Jr. said:

“2020 proved to be another dynamic year for Diversified as we completed our transition from AIM to the premium segment of the Main Market, invested in enhanced Governance and efficiency-driving technology, and completed a series of accretive acquisitions funded using a balanced mix of equity and low-cost, fully amortising and hedge-protected financings. Additionally, the unprecedented events of 2020 have underscored the inherent resilience of our business model. We’ve built our business to operate in any natural gas price environment, and the strength of that model was evident throughout the significant volatility of 2020. Not only did our business model perform well, but the resolve of our employees was outstanding.

“With our successes last year, we are positioned to enter 2021 with momentum including our most recent fourth-quarter complementary bolt-on acquisition of unconventional assets. With a strong balance sheet, efficient cost structure, improved commodity price outlook, strong hedge protection and a robust outlook of potential accretive growth, we are poised for another exceptional year. Our opportunities to acquire high-quality assets that enhance or meaningfully enlarge our portfolio continue to increase with prolonged lower commodity prices and a sector increasingly motivated to consolidate. As we’ve demonstrated with each previous transaction, additional scale can further improve efficiencies and support the high cash operating margins that add stability to our dividend.”

DGO remain in a very strong position, they continue to prove that the model works and that there is substantial upside from the many acquisition opportunities yet balanced by a superb hedge portfolio. Their use of available scale provides excellent margins which feed through to stable dividends and a high return to shareholders via capital and income. A key member of the Bucket List, DGO is amongst the better placed companies in the market and of course now on the main market.

[mattybuoy] 27/1/2021 11:18

Yes get paid to wait. Ideal for the SIPP :)

[lab305] 27/1/2021 11:03

Mattybuoy that's right. I have been with this share for 3.5 years and the yield has grown but the share price has never caught up. It should be trading around 150p at least and even then it's yield would be more than most. Today is just typical with an excellent update but poor market reaction. As I have said before on here , I can live with 10% .

[mattybuoy] 27/1/2021 10:49

The main reason the yield is so high is because it is priced as an annuity i.e. a decaying asset. There is lots of FUD going around regarding O&G being a sunset industry.

So the key point going forward is to not decay, or maybe even grow a bit, and over time and with changing perceptions that ought to cause the yield to shrink and the share price to increase.

[mattybuoy] 27/1/2021 10:41

A bit cheap isn't it.

I have no idea how an All-American company like this ends up on the LSE but have it I say :)

[captain stock] 27/1/2021 08:00

Great update, what a well run company with an amazing Dividend.

[podgyted] 27/1/2021 07:57

Looks good to me as well - over to the market.

[dunderheed] 27/1/2021 07:41

Nice update, surprised no one commented?

[fardels bear] 26/1/2021 20:04

See the Septics heat their houses without any gas for a while. Uh huh...

[podgyted] 26/1/2021 20:01

Or it could go down - New York City pension funds divesting of $4bn fossil fuel funds announced today - beware the Biden effect.

[fardels bear] 26/1/2021 11:17

The share price might go up!

[mondex] 26/1/2021 09:49

What are the implications for us (UK shareholders) of DGOC listing in the US?

[lord gnome] 26/1/2021 07:54

Interesting read, Pro. Seems a very fair assessment of the company as an income investment. I think we are all now waiting to see what the link up with Oaktree will produce. So far, it's just a tease and a promise.