Diversified Gas & Oil Share Discussion Threads

[nimbo1] 09/11/2018 13:37

Wake up market - we are selling gas you know not oil

3.72!

[lab305] 09/11/2018 13:27

Yes. Something wrong here. Bought another 5k shares this morning. The share refuses to go over 120p not helped by the continued delay in any agreement on plugging wells. Over 3 months now is not acceptable.

[lab305] 09/11/2018 13:27

Gas now 3.67. This share should be way higher than this.

[basem1] 09/11/2018 13:08

Shame we aren't following the gas price up. Now 3.65 per unit

[sogoesit] 05/11/2018 23:58

You're right, I think, podgyted. The market seems unsophisticated in its knowledge of gas markets in general and the US (geographical) market in particular.
Also, market probably sceptical about the raft of deals and may be looking for reasons to be pessimistic like the last time on abandonment liabilities.
Anyway, I'm here for income.

And, it seems a long time since Rusty did his last deal... are we due another one... ;-)))

[podgyted] 05/11/2018 17:34

Somewhat more interested in any theories as to why this share does not move (at all) in line with HH gas prices - realise it hedges but you would have thought some basic link to HH as it does take this as its benchmark.

Beginning to think the market continues to price gas producers on the oil price when it has decoupled from gas.

[nimbo1] 05/11/2018 16:23

Nice article on whats going on ref prices

[podgyted] 05/11/2018 13:32

Now up 8.5% - no move from DGOC - guess may be waiting for US to open.

[nimbo1] 05/11/2018 13:10

well perhaps the share price might wake up here at some point if the ng price continues to zoom ahead.

[sogoesit] 05/11/2018 12:53

Up 6.5%+ ... commentary says due to expected colder winter.

[podgyted] 05/11/2018 07:36

Any idea what's causing this - its now at 3.46

[lab305] 05/11/2018 07:02

NATURAL GAS 12 mins
3.448 +0.164 +4.99%

[podgyted] 01/11/2018 22:44

Sent an e-mail to their PR people.

[podgyted] 01/11/2018 22:27

Forgotten they did this last year. Their investors relations calendar is currently blank.

I must admit an update would be useful given their recent acquisition history and quarterly reporting is pretty standard in the industry.

[mfhmfh] 01/11/2018 15:40

anyone know when the next trading update is? it was on 30th October last year.

[lab305] 31/10/2018 04:20

Cold Snap Could Send Natural Gas To $5
Gas pipeline
The natural gas market is looking rather tight, even as U.S. production continues to set new records.

Inventories fell sharply last winter, leaving the country a little light on stocks heading into injection season. That did not concern the market much, with record-setting production expected to replenish depleted inventories.

However, the past six months has not led to surging stockpiles, and inventories replenished at a much slower rate than expected. We are about to enter the winter heating season with inventories at their lowest level in 15 years. For the week ending on October 19, the U.S. held 3,095 billion cubic feet (bcf) of natural gas in storage, or 606 bcf lower than at this point last year, and 624 bcf below the five-year average.

The reason for this is multifaceted, with seasonal weather playing a role, but also structural increases in demand. “Hot summer weather, LNG liquefaction demand, exports to Mexico, and the industrial sector have all mitigated the impact from a 8.7 bcf/d YoY production growth surge this summer,” Bank of America Merrill Lynch said in a recent note. Low inventories and potential deliverability risks led the investment bank to hike its price forecast for the first quarter of 2019 to $4 per MMBtu, up from a prior estimate of just $3.40/MMBtu.

Coal shutdowns have led to a lot of fuel switching. Moreover, new gas-fired power plants have opened up and continue to do so. The U.S. also became a sizable LNG exporter in 2016, and exports will continue to climb in the years ahead with more terminals coming online. New pipeline interconnections with Mexico should also lead to more shipments from Texas to the U.S.’ southern neighbor.
Peak winter demand in the early 2000s stood at around 75 to 85 billion cubic feet per day (bcf/d), according to BofAML. That figure spiked to 100 bcf/d last winter, helping to explain the rapid decline in inventories. There was a cold snap in early January, but the winter on the whole was “near normal,” BofAML argues, making the steep fall in stocks all the more remarkable. In other words, demand is structurally much higher than it used to be; the sudden tightness is not just because of a seasonal anomaly.

But, as always, natural gas markets can be highly volatile, and very sensitive to extreme weather. A cold snap this upcoming winter could lead to a price spike, especially with the inventory buffer so low. “The Polar Vortex winter of 2013-2014 realized a record low salt inventory level of 54 bcf,” BofAML said. Salt inventories are those that can be called upon quickly. “Another Vortex, which on average has occurred once every 7 years in the 1950-2018 period, would be catastrophic,” Bank of America Merrill Lynch warned.

Unlike 2014, the last time we saw a polar vortex and a natural gas price spike, this time around there is a lot less coal to fall back on in the event that inventories plunge to low levels amid soaring demand. As a result, natural gas prices might be forced even higher. “A cold winter paired with higher coal prices and reduced gas-to-coal switching could propel NYMEX natural gas to a brief spike over $5.00/MMbtu,” BofAML said.

This does not negate the long-term bearish forecast for natural gas prices. The U.S. shale bonanza continues, both in the Marcellus and Utica shales in the northeast and the Permian basin in West Texas. “Past this winter, we expect production to overwhelm demand growth and lead to above-normal inventories by 2H19 and a risk of storage congestion in 2020. Our average price forecast for 2020 remains $2.55/MMbtu, reflecting bearish longer-term fundamentals,” BofAML concluded.

Still, in the short run, structurally higher demand and the prospect of another polar vortex, or merely below average temperatures this winter, could overwhelm what has been record natural gas production.

By Nick Cunningham of Oilprice.com

[nimbo1] 31/10/2018 04:14

$ strength vs £ useful here ref dividend and gas price steady. Hoping the next results wakes up the market a bit.

[cornishpasty777] 24/10/2018 22:00

Thanks Nimbo, job done.

[cornishpasty777] 24/10/2018 22:00

Thanks Nimbo, job done.

[nimbo1] 24/10/2018 20:49

stockbroker

[cornishpasty777] 24/10/2018 18:06

Hi Guys, regarding the W8-BEN form, as best I understand I have to complete this form even as a UK investor, but do I need to send the form to DGOC or my stockbroker? Thanks in advance again.

[melody9999] 24/10/2018 09:54

Thanks Reptile.

[reptile3] 23/10/2018 15:28

melody..... payments quarterly. Ex-dividend date 29th November and payment 19th December.

[melody9999] 23/10/2018 14:03

I'm reading about this yield. At 8%+ that should be c 10p per annum - or 13 cents. Can anyone remind of the payment method (quarterly?) and dates?

[carcosa] 22/10/2018 11:00

Update from Edison:



"... The deal values Core at $183m, which is broadly in line with the valuation of the EQT transaction on a price to NPV10, price to flowing barrel and price to trailing cash flow metric. On addition of the Core assets, assumption of incremental debt and issue of 35m new shares at 115p/share, our valuation rises from 138.1p/share to 145.9p/share (+6%)."

With an 8.6% yield....