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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Diversified Gas & Oil Plc | DGOC | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 120.80 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 120.80 | 120.80 |
| Top Posts |
|---|
Posted at 30/4/2021 07:15 by pro_s2009 Diversified Gas & Oil PLC (LSE: DGOC), is pleased to announce that the Board has declared an interim dividend of 4.00 cents per share in respect of Q1'21 for the three month period ended 31 March 2021.Key dates related to the Q1'21 dividend include: Ex-dividend Date:2 September 2021 Record Date:3 September 2021 Payment Date:24 September 2021 Default Currency:US Dollar Currency Election Option:Sterling Last Date for Currency Election:6 September 2021 DGO will pay the dividend in U.S. dollars while continuing to make available to shareholders a sterling election. For those shareholders who wish to receive their dividend payment in sterling, and who have not yet completed a currency election form, the Company has made available a dividend election form on its website at Shareholders who wish to receive sterling should submit the currency election form to Computershare Investor Services no later than 6 September 2021. The sterling value of the dividend payable per share will be fixed and announced approximately one week prior to the payment date. |
Posted at 31/3/2021 07:53 by fordtin Thanks Gary1966looks like I need to transfer my ISA out of HDSL as I came across this on LSE; -------------------- Stalin_ESQ Price: 113.40 No Opinion RE: Just dipped my toe in...Tue 16:40 spent 15 minutes in a queue to get through to the dividend department of Halifax sharedealing whereby the guy put me on hold when I mentioned the fact that I had completed a W-8BEN form and yet I was still being taxed 30% on this dividend.....he then put me on hold again (to do some checks).....he then pointed me to the text I posted below .....quite annoyed. Basically the advertised divi isn't what you get if you trade via Halifax. -------------------- Stalin_ESQ Price: 113.40 No Opinion RE: Just dipped my toe in...Tue 13:53 In most cases when you complete a W-8BEN form you will only pay the 15% Withholding Tax rate instead of 30% on US listed shares paying US sourced dividends. For UK listed shares paying US sourced dividends a 30% Withholding Tax rate is applied even if you have a W-8BEN form in place. |
Posted at 22/3/2021 10:15 by thetrotsky Gary, I disagree. If the contract is to have any value then somebody has to pay. Even if the original counterparty sells the contract, DGOC either has to deliver oil at the contract price (below the market price) or make good the difference between the hedged price and the market value. Otherwise there would be no value to the contract. If you don't believe me then I suggest that you read Note 14 where it says quite clearly "If the Group sells a swap, it receives a fixed price for the contract and pays a floating market price to the counterparty". There is a cash impact on DGOC but it's a cash impact that they do not factor into their calculations (DGOC makes its calculations based on the fixed price). It is, as I've said before, a reflection of the potential opportunity lost. The reason DGOC refers to it as a non-cash adjustment is because it's currently unrealised and may never crystallise (the market price may drop or DGOC may be anle to take counter actions to mitigate the effect). It really isn't complicated ;-) |
Posted at 20/3/2021 22:03 by gary1966 TheTrotsky,Sorry been out all day and only just seen your post. From your post 518: First of all, they don't sell the oil to the counter parties (they just make good the difference between the realised price and the hedge price). No they don’t make good the difference. If the price of gas exceeds the hedge price then the value of the contract goes up to the person who holds it in the same way it goes down for DGOC. They can then sell the contract to another party for a profit or if they are taking physical delivery then they can sell the gas and that is how they crystallise their gain. There is no cash impact on DGOC and once again reiterates why it is a non cash item in the accounts. The only price the company can pay for being on the wrong side of the hedge is to have lost out on revenue over the life of the contract. The only purpose of the hedge, as I have said, is to ensure they have sufficient revenue to repay the loans and ensure the dividend. It really isn’t more complicated than that and lenders will probably insist on it being taken out as security for their money. As I have also said it makes DGOC an investable company rather than a casino. Kind regards PS With regards to DGOC and IFRS, yes I would say it is a complete waste of time. Appreciate that future legally bound contracted payments should be shown on the accounts but M2M accounting completely distorts most if not all sets of accounts and leads to unnecessary wild swings in annual profits that over the life cancel out to zero. |
Posted at 20/3/2021 10:39 by thetrotsky Gary1966,With respect, I think you're completely missing the point. First of all, they don't sell the oil to the counter parties (they just make good the difference between the realised price and the hedge price). Secondly, the hypothetical loss in the accounts does not represent the current market value of the derivative contracts; it represents the potential, additional, profit opportunity that would currently be foregone over the lifespan of the contracts, all other factors be equal, at the balance sheet date. Thirdly, the hypothetical loss will not simply "reduce to zero" if realised prices remain above the hedged prices; the loss will instead become realised (in the same way that a realised gain arises when realised prices are below the hedged prices) unless the company takes some counter action. However, allowing for the technical nuances of discounting, you would be right, in principle, to say "no additional loss would be booked"; there would, rather, be a release of the loss provision to offset the realised losses. I do actually understand how hedging works, in principle, and why DGOC has enetered into these derivative contracts and the benefits to DGOC thereof. However, I think it's important for people (the laymen) to appreciate that there is scope for DGOC to enter into additional counter trades in the future, if appropriate, to mitigate any potential "lost opportunity" at that time, which is not factored into the hypothetical loss i.e. the quantum of any future potential "lost opportunity" is not "set in stone". I'm also saying that, particularly under IFRS, the disclosures in the accounts are confusing and, potentially, misleading and DGOC could, and should, do more to explain how the loss is being computed. The fact is that the hypthetical loss does actually have a potential cash impact in the future; unless DGOC takes future counter action, the hypothetical loss represents the additional money DGOC could potenially have retained from its realised sales if it hadn't hedged its future production. DGOC refers to this hypothetical loss as a non-cash adjustment simply because it doesn't factor receiving this cash into its business model; it's a subtle difference. |
Posted at 20/3/2021 08:26 by thetrotsky podgyted, regardless of what you may think about IFRS, the accounts are prepared and audited under IFRS and, as such, the accounts say DGOC have made a loss and I don't think that can simply be ignored out of hand. Furthermore, the information you are relying on isn't being audited, which isn't ideal. Personally, I wasn't particularly impressed with the way DGOC presented the figures. The accounts have to be read by both layman and experts alike and I don't think DGOC did enough to explain why there was such a large, material loss reported on their derivative contracts considering that this could be a perrenial accounting issue e.g. simply referencing the forward price curve and discounting didn't, in my view, adequately explain why the loss had arisen or why it could simply be ignored as a "non-cash" adjustment, as if to imply that it will never have any impact in the "real world". IFRS may be Voodoo but you don't simply book a loss that may never arise. I believe, but stand to be corrected, that the book loss on the derivative contracts reflects the potential future revenue DGOC might forego, based on current estimates, if realised prices continue to rise and the company does nothing to mitigate the impact should realised prices exceed hedged prices; if so, why not explain that in layman's terms. I also think that there were simply too many figures in the executive summary (and some figures that made no sense whatsoever e.g. the CFO's statement I previously referrred to) and it only served to make the accounts even more difficult to understand and analyse; DGOC may not like IFRS any more than you do but it almost smacked of a "smoke screen", intentionally or unintentionally, which only serves to raise more questions than answers. I personally would like to see less detailed analysis in the executive summary (the detail should be in the alternative performance measures or appendices) |
Posted at 17/3/2021 13:28 by thetrotsky DGOC have, for example, hedged 90% of their 2021 natural gas production at an average of $2.94/Mcfe (it should be noted that this compares favourably with 2020 where the average hedged price was $2.33/Mcfe).So, in principle, if the average realised price in 2021 exceeds $2.94/Mcfe, then DGOC can expect to pay their counterparty the excess amount on 90% of their production and vice versa, and DGOC's income on 90% of their 2021 natural gas production is therefore theoretically capped at $2.94/Mcfe. However, if it looks likely that the average realised price will exceed $2.94/Mcfe then, as I understand, it remains open to DGOC to enter into offsetting transactions, such as options or swaps, to minimise the impact (to effectively "uncap" their income if the average realised price rises above, say, $2.94/Mcfe + a margin). So, DGOC may still be able to benefit from higher prices despite their existibg hedges. I would reference Note 14 where it says, "the Group may elect to enter into offsetting transactions for the above instruments for the purpose of cancelling or terminating certain positions". |
Posted at 22/2/2021 18:08 by cassini ii does not charge any Withholding tax on DGOC held in their SIPP.ii credit me with DGOC dividends paid in dollars. |
Posted at 01/9/2020 22:22 by pro_s2009 First Berlin Equity Research has published a research update on Diversified Gas & Oil PLC (ISIN: GB00BYX7JT74). Analyst Simon Scholes confirms his BUY recommendation and increases the price target from GBp 130.00 to GBp 150.00.Summary: Following the H1 results, we have revised our dividend discount valuation of DGOC shares to include both a higher dividend in the second quarter of USD0.0375 (FBe: USD0.035) than forecast and rising gas futures prices since ours Cover recording at the end of June. Based on a futures curve rising for the remainder of this decade and DGOC's existing hedge portfolio, we expect the company's realized natural gas prices (after the impact of cash-settled derivatives) to be in the USD2 range over the next five years .34 / mcf to USD2.57 / mcf will remain stable. This compares to our 2020 forecast of USD 2.30 / mcf. The full cash cost for H1 / 20 (after operating costs, investments, costs for closing wells and cash interest) was USD 1.36 / mcf. This indicates a free cash flow return on sales of at least 42% to 47% over the next five years (economies of scale should lower unit costs as the company expands). DGOC should therefore have enough firepower to continue the regular acquisitions that have secured over 95% of its current production since early 2017. The goal of DGOC is that no less than 40% of the adjusted free cash flow, defined as adjusted EBITDA (hedged) minus maintenance investments, interest expenses and costs for the decommissioning of wells, should be paid out as dividends. According to our forecasts, the payout ratio based on the current dividend level will be 43% this year and 44% in 2021. We therefore consider the current dividend to be sustainable. The combination of a dividend yield of over 10% and strong and stable cash generation confirms our view that the stock is significantly undervalued. In addition, the current market capitalization justifies the inclusion of DGOC in the FTSE 250 index. New index members will be announced after the market closes on September 2nd with effect from September 21st. Our recommendation is to buy with a price target of £ 1.50 (previously: £ 1.30). You can download the full analysis here: . |
Posted at 22/8/2020 17:19 by doubleorquits Shares Mag update on their earlier tip of DGOC:Diversified Gas & Oil remains a generous dividend payer Recent first-half results demonstrated the resilience of the gas producer and its cash flow Diversified Gas & Oil (DGOC) 112.4p Gain to date: 10.2% Original entry point: Buy at 102p, 21 May 2020 Supported by a recovery in oil prices and robust operating performance, our faith in Diversified Gas & Oil (DGOC) is gradually being rewarded. A notable feature of the recent first-half results (10 Aug) was the continuing commitment to a generous dividend. The company’s interests in low-cost US natural gas production enables the business to generate plenty of cash. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 11% year-on-year to $146 million. Average first-half net production was 95,100 barrels of oil equivalent per day, up 26% year-on-year. The company declared an interim dividend of 3.75 cents per share, up 7%, backed up by the ‘strength and durability’ of its cash flows. Based on consensus forecast data from Refinitiv the shares trade on a 2021 dividend yield of 10.1%. The company’s strong balance sheet position, with chief executive Rusty Hutson flagging total liquidity of $220 million, should also enable it to take advantage of any opportunities created in the current challenging environment. SHARES SAYS: The company has demonstrated its ability to buy assets at attractive prices to grow its production and to manage these assets efficiently. These qualities underpin a very generous stream of income. |
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