Diversified Gas & Oil Share Discussion Threads

[lab305] 19/11/2018 06:10

Back rising strongly this morning.

NATURAL GAS 15 mins
4.644 +8.71%

[nimbo1] 15/11/2018 09:55

The market may also appreciate in time as the uk pound gets dumped this share pays in dollars which is then converted to pounds. Unless there is something I’m missing or is yet unknown to us this looks like a near perfect investment opportunity.

[nimbo1] 15/11/2018 09:03

Lab as much as that’s frustrating it doesn’t mean it won’t catch up. It will be interesting to see how the price increase feeds through into cash flows and dividend payments. Assuming an increase in gas price is a good thing for our dividend payments the price will go up.

[nimbo1] 14/11/2018 18:15

Natural gas up nearly 18 percent now......

[nimbo1] 14/11/2018 17:12

interesting article about the hedge fund pair trade of sell NG buy Oil now reversing viciously as they get margin called.

[nimbo1] 14/11/2018 16:50

This is the best looking opportunity I can find at the moment and I've doubled down after the recent rise in natural gas prices.

Ive emailed the company via one of their advisors about how they hedge their gas prices and how it works with timeframes etc - and will let you know what the response is if I get one.

[sogoesit] 14/11/2018 16:38

Harsh!
Year-to-date the stock is up 44% against the FTSE-250 which is down 9%.
The market tends not to like aggressive M&A companies in general so expect pundits to be questioning all sorts of things... from risks to the balance sheet to management of growth to whatever they can pick on (decommissioning) and if they don't understand how these things work..
Not to mention the state of the markets in general.

Anyway, looks a pretty chart to me 18 months into its life on the stock market; long may it continue.

[lab305] 14/11/2018 16:21

Best thing that could happen here would be a takeover. Assets are now worth way above the market cap and management has not such a high percentage since recent acquisitions . Their inability to resolve the decommissioning issue and keep shareholders informed with normal trading updates let alone produce a calendar of forthcoming events is dragging on the share price. Gas up over 33% in under two months and the share price falling is unnerving .

[sogoesit] 14/11/2018 16:06

Natural gas is a predominantly contracted market, unlike oil which is a pure commodity, confined mainly to geographic regions if traded on an open market and priced at regional hubs (virtual locations).
UK gas prices at the NBP (National Balancing Point) are currently about 73 pence per therm (approx. $9.5/mmbtu by my reckoning).

[podgyted] 14/11/2018 12:55

Finally heard back from the PR people - "There are no immediate plans to issue a trading update."

[basem1] 14/11/2018 12:39

Ok thanks. I use the Plus homepage for all my commodities and indices prices.

[nimbo1] 14/11/2018 12:29

hxxps://oilprice.com/Energy/Natural-Gas

Pricing is complex as it varies around the world by huge margins depending on where the gas travels from or if it is used in a domestic market.

The benchmark most relevant to DGOC is Henry Hub - pricing can be found at the above link.

[basem1] 14/11/2018 12:25

Nimbo - is the unit of measure a KWH, the same as it is on our domestic use ? Been in oilers for 15 years but never had much to do with gas producers.

[nimbo1] 14/11/2018 12:17

natural gas up 15% at 4.7...never seen anything like it

from the strategy part of their website

'DGO's vast portfolio is comprised of approximately 1.45 million leasehold acres and provides a significant opportunity for organic growth through infill drilling activities. As a result of our focus on conventional shallow formations, our wells are low-cost and operationally low-risk, ensuring we retain strict control of drilling and completion costs. DGO can activate a low-risk development programme in a favourable commodity pricing environment that ensures a quick return on investment.'

I assume someone is busy drilling holes...

[nimbo1] 14/11/2018 11:37

interesting points in this video ref pricing following the October acquisition. 2 mins in he talks about moving gas around to the best price point in the market and describes it as 'real important'...

[...]

[basem1] 14/11/2018 11:27

4.35 now, does this mean our gas bills will be increasing or is this just a spike. Notice none of the recent Brent price fall has been passed on at the pumps 86$ down to $66 shows how the garages are profiteering.

[nimbo1] 14/11/2018 11:22

Good posts this am. all helps to make sense of what seems bizarre. Meanwhile HH gas prices up another 5% to $4.3!

[podgyted] 14/11/2018 09:53

IMO its quite simple really - if this was called Diversified Gas Company the price would be going up, because it called Diversified Gas & Oil Company its falling - it reflects the quality of analysis done in the city.

Not really a fan of quarterly reporting but it would help here due to the acquisition spree its been on recently and would calm a few nerves if the numbers are as expected.

The oil price fall is perversely probably beneficial to DGOC - most of the shale producers are heavily geared so they may well be able to pick up some more assets on the cheap.

Finally income's the thing here.

[lord gnome] 14/11/2018 09:39

Today's fall was a bit disconcerting, but DGOC does tend to jump about a bit. Price starting to pick up again now, so was this morning's action just a bit of a tree shake or a badly programmed bot?
Chartwise, the price is still in the well-established uptrend and should go on to make fresh highs in due course. Good buying opportunity this morning if you had the balls - and the spare cash.

[alter ego] 14/11/2018 09:28

Whilst I understand the puzzlement over the share price not responding to changes in gas prices, I'm unconcerned. I bought DGOC for the income. When the company reports its numbers and the dividend, the share price will find the appropriate level. Meanwhile there's little point agonising as I'm not intending to sell and in fact, I've added to my holding whilst Mr Market fails to recognise the value here. All IMO of course

[sogoesit] 14/11/2018 09:28

RDSB down to 6% yield today so there seems to be a combination of risk aversion to oil on recent drops in the oil price and poor market sentiment about potential recession/interest rates.
Of course RDSB is weighted to gas as well but not concentrated in the US so its contract base more indexed to oil than DGOC.
Difficult to fight market sentiment but opportunities for longer term viewers imo.

[nimbo1] 14/11/2018 08:55

Yes it’s all a bit weird imo - i may email randy and see if I get anywhere asking for more info about their hedging policy etc.

I really can not fathom the move in the underlying asset price - gas - and the complete disconnect with the share price.