Diversified Gas & Oil Share Discussion Threads

[lord gnome] 22/5/2018 07:22

The dividends are paid net of the 15% tax into my ISA and then the tax element is reclaimed and paid into my ISA at a later date. There is a delay of two or three months in reclaiming the tax.

[divmad] 22/5/2018 07:05

UK pension funds (including SIPPs therefore) are exempt from the tax. Otherwise, it's 15% w/h.

[thegreatgeraldo] 21/5/2018 22:27

From the website,

hxxps://ir.dgoc.com/divid

It's basically a US firm with a UK listing, rather than a UK firm with US ops.

[thegreatgeraldo] 21/5/2018 21:54

Still doesn't make sense to me - what you're saying is the US is giving SIPP holders relief from witholding tax. Prersumably some folk holding outwith a SIPP have paid w/h tax?

[podgyted] 21/5/2018 21:42

Divmad

Interesting to know - thought I was right, but I always bow to experience!

PT

[divmad] 21/5/2018 19:25

podgyted, no w/h if you hold them in a SIPP. Trust me. I have had two payments already.

[divmad] 21/5/2018 19:24

Welcome aboard, Zengas. I finally beat you to one of these small oilies! This is in my pension pot, for sure.

[podgyted] 21/5/2018 17:37

They pay from the US so it's caught.

[thegreatgeraldo] 21/5/2018 16:47

Dividend witholding tax? Surely that only applies to companies listed in the US?

[zengas] 21/5/2018 16:29

Finally took some of these awhile back given they're paying a very decent dividend and with the financing available and cost of previous acquisitions, could more than double their existing production from 28k to 50k+ boepd with the growth in div and share price in tow.

[spectoacc] 21/5/2018 16:23

Very happy with how these are performing - went through previous high as hoped.

[podgyted] 08/5/2018 22:41

You can, depending on your circumstances, reduce the w/h tax to 15% by filling in a simple form, normally available on internet platforms (although not SVS XO in my experience), which makes it more palatable. 85% of a 6.88% yield is 5.85% which is not to be sniffed at.

[cervin1] 08/5/2018 22:09

Apologies upfront for my naivety, can somebody educate me !! what are the attractions here, for shares held outside a SIPP, when their is a large dividend withholding tax because its a US company.

[blueeyes13] 06/5/2018 13:01

Thanks lab, appreciate it. So there's no forecast anywhere for 2018 EPS?

[lab305] 04/5/2018 13:13

blueeyes , Trying to work out the correct pe with the company growing so rapidly is difficult to say the least. Your man in the Investors Chronicle I believe is wrong. Their mantra is to pay no less than 40% of free cash flow back to shareholders in the form of dividends.
From now their projection for the next 12 months is 3.45+1.75+1.75+1.75 US cents. That is 8.7 cents. At today's exchange rate of 1.36 that is 6.397 pence. That alone gives a yield of around 6.88% at today's price.
Now the only unknown is what percentage above 40% of the company's free cash flow does this represent. I personally cannot see it being much above the 40% as they need cash for expansion, however if the figure was 50% that would be almost 12.8p free cash flow on a company at 93p.
When you start to put together the cost synergies in transportation etc. added to the opportunities for organic growth which they have not even scratched the surface of yet this company is cheap on any metric.

[blueeyes13] 04/5/2018 03:32

Alex Newman excerpt in recent Investors Chronicle article on DGOC below.
Using his forecast (f/c) EPS7.6c converted to 5.5p and 92p share price then his f/c PE is around 16 much higher than some comments on this board which used an EBITDA figure.
The Stockopedia f/c figs are all over the place and I understand the recent large acquistions might mess up some forecasts.
I know the co have f/c EBITDA of USD70m to USD75m this year.
As accounts is not my forte, I'd very much appreciate any clarification from anyone with more financial experience on 2018 f/c net profit before tax and EPS and therefore f/c PE based on today's share price
Thanks in advance.


"Since 2017 finished, Diversified Gas & Oil (DGOC) has increased its daily production by 170 per cent, moved to quarterly dividends, refinanced its debt and tripled its total equity. Consequently, comparing last year’s figures with 2016 – when daily output averaged 3,000 barrels of oil equivalent – feels like an exercise in archival research. Yet pro-forma numbers for the Appalachian driller’s first quarter of 2018, included alongside preliminary results, show some consistency.
Those early 2018 numbers, treated as if the acquisitions of APC and CNX were completed on 1 January, suggest general and administrative (G&A) and unit lease costs continue to narrow, and that the adjusted cash profit margin has held firm at 40 per cent. That margin, in keeping with DGO’s preference for swaps and collars on future production, is accounted for on a hedged basis. Had output not been hedged in the first three months of this year, it would be slightly higher, and adjusted cash profit would have hit $15.8m (£11.5m), rather than $15.5m.

This isn’t to imply that investors are missing out on higher energy prices; indeed, most of what comes out of DGO’s 30,000 wells is natural gas, which hasn’t seen the same price spike as crude. Moreover, it demonstrates that scale and acquisitions, rather than commodity prices, are the route to earnings growth. On that note, consensus forecasts are for pre-tax profit of $24.8m and adjusted EPS of 7.6¢ in 2018."

[spectoacc] 03/5/2018 14:02

Got to fancy a breakout back through 95p soon - seems little to stop it.

[blueeyes13] 02/5/2018 03:18

Nimbo, did you make it to the lunch this week? Any feedback or from anyone else who was there?Thanks

[lord gnome] 30/4/2018 18:55

www.proactiveinvestors.co.uk/companies/stocktube/9170/diversified-gas-oil-enjoying-robust-production-and-increasing-cashflow--9170.html


Interview with Rusty on Stocktube.

[martinthebrave] 30/4/2018 12:57

Well they seem pretty pleased with themselves & rightly so as Management have achieve all they set out to do. This is a Divi machine & talk now moves to "reaping the benefits from 2017 transactions". Happy to have this as a "top 5" long term holding.

IC also seem to approve:

"The capital structure and operational reach of Diversified Gas & Oil (DGOC) has transformed at least twice in the last year, rendering a year-on-year comparison between 2016 and 2017 meaningless. Still, several important metrics – the average operating lease expense, cash profit margins, and the final dividend – are all trending in the right direction, and as a result we remain buyers."

[lord gnome] 30/4/2018 08:32

Clearly, the market does not share my enthusiasm for this stock. A miserly 1p rise in the bid.

[lab305] 30/4/2018 08:05

Self congratulation fully justified. The trouble with us British is that we do not champion success . This company has done more than it promised and future dividend yield looks excellent . Perhaps the share price might start to move up to a more realistic level.

[lord gnome] 30/4/2018 07:42

A good set of numbers and a positive outlook. The RNS does have a self-congratulatory tone about it, but I expect that from US companies when even a small achievement is 'larged'. I shall look forward to my quarterly dividend declarations with interest and enthusiasm. I want a 6% yield here, net of any withholding taxes.

[spectoacc] 30/4/2018 07:24

Definitely a back-slapping RNS! But they deserve it (so far..).