Diversified Gas & Oil Share Discussion Threads

[nimbo1] 13/8/2019 10:43

Yes you've stated the bull case - which all market participants know. I find where something isn't behaving as I expect it to after a certain time period I get out - hard to argue with the market, its always right. There could be all sorts going on here. DGOC are buying assets out of administration - for some that's a bargain for others thats an asset that will go bust again...who knows. More often than not 'listening' to the price action has saved me pennies. And the price action here looks disgusting for the moment.

[alotto] 13/8/2019 10:37

Why would people look for an exit when they hold undervalued shares that are paying 8% dividends? Put this way. Assume the share price stays in the region of 100p. Holding for three years will return 24% profits. That gives a margin of safety, will the stock go down to 75p. Which I very doubt is going to happen. Worst case it will be 150p, which will still be at 25% discount based on the current broker's valuation, which I believe is in the region of 200p. Keep in mind we were around 140p few weeks back.
I can see DGOC in the main market one/two year from today.
What is dragging the share price down? is it just a stampede?
The company looks well managed by people that seem to know what they are doing.
Decommissioning cost shouldn't be a concern now, low gas price is not a surprise neither. More acquisitions may be on the way.

[nimbo1] 13/8/2019 10:13

looks that way - despite the buybacks everyday the sell side is loaded! bit of support mid 90's...looks like it could turn into a rush for the exit - but then again a lot of stuff feels that way at the moment other than gold.

[astralvision] 13/8/2019 10:07

Chart looks dire, about to fall off the edge of the cliff?

[alotto] 09/8/2019 14:59

Is DGOC producing oil from Shale?

[bountyhunter] 09/8/2019 14:00

lab, to post a link just capitalise the leading 'h'...

[lab305] 09/8/2019 08:39

hxxps://oilprice.com/Energy/Energy-General/Time-Is-Almost-Up-For-US-Shale.html


To see link first 5 letters change to https

[cockerhoop] 08/8/2019 15:13

lab305,

What calculations are you using? Genuinely interested.

[lord gnome] 08/8/2019 14:28

That's the way I see it lab305. Paid out every three months as well.

[cockerhoop] 08/8/2019 14:24

Am I right in thinking the 'current cost' of decommissioning is approx $9bn?

Using the provision of $146m a discount rate of 8%, inflation at 2.2% and project life until 2093 as per the accounts.

[bountyhunter] 08/8/2019 12:40

How many companies are doing this...

Diversified Gas & Oil Hikes Payout After Profit, Output Quadruple

[lab305] 08/8/2019 08:39

Just done calculation if 3.5 cents stays constant.
14 cents per year. 11.9 cents after withholding tax.
Exchange rate at 1.22 dollars to the pound.
9.754 pence on a 106p share.

[lab305] 08/8/2019 08:33

Very good set of results and business as usual. Dividend increase again whilst still paying down debt. This must yield nearly 10% now whilst the share price languishes at 106p. The company has done all it can in producing good results and instigating a share buyback scheme. Solid focused management producing excellent profit . Some day, hopefully soon investors will lose their scepticism and start buying.

[bountyhunter] 08/8/2019 07:59

Quarterly as well ☺️

[lord gnome] 08/8/2019 07:52

Nothing wrong here by the looks of things. Another small divi increase - they all count.

[bountyhunter] 08/8/2019 07:37

"I am pleased to announce that we are making available the ability for our shareholders to receive our dividend paid in sterling. This will commence with the Q1 dividend of which is due to be paid 27 September 2019. An announcement will be made shortly and election forms will be sent to shareholders in the coming days."

[bountyhunter] 08/8/2019 07:36

2019 dividend of 3.5 cents per share (2Q18: 2.8 cents per share), which will be paid on 18 December 2019 to those shareholders on the register as at 29 November 2019.

[bountyhunter] 08/8/2019 07:12

June 2019 exit rate net production exceeded 90.2 MBoepd

...

Declared 2Q19 interim dividend of $0.035 per share (2Q18: $0.028 per share)

...

Our Smarter Well Management programme continues to yield positive results and our ability to hold production steady is a testament to our operating capabilities. Since 1 January 2019 approximately 430 previously non-producing wells were placed back into production. Similarly, our safe and systematic retirement programme also enjoyed excellent progress and completed approximately 55 well pluggings for less than $25,000 on average, in line with our budget and previously shared estimates for these projects.

[bountyhunter] 07/8/2019 07:06

All repurchased shares held in treasury have been cancelled which is good news as other companies buying back shares often hold in treasury later handing them out to satisfy generous option schemes subsequently issued to executives.

[carcosa] 02/8/2019 16:06

podgyted,

I think your reasoning is spot on.

Whilst financial hedges are an advantage it cannot mask the fact that gas production in the US is at a multiple of what it was several years ago and there is no sign of that trend reversing in the short to medium term. As a consequence, going forward, obtaining a useful hedge will become increasingly difficult. After all hedges are really there to smooth a volatile (gas) price but in practice gas prices are in a long term decline due to over production.

DGOC can offset some of this by increasing operational efficiency but overall I see the business in a structural decline. What it does provide is the potential for a very lean, efficient and profitable business in, say, 5 years or so IF gas prices recover (not just seasonally)

Anyway, I do not have faith/patience/hope to that extent and as a consequence sold my share holding a few weeks ago.

[podgyted] 02/8/2019 15:21

Supply seems to be ahead of consumption:-



Seems to me if it wasn't for LNG exports the US would be totally awash and more and more countries are pushing LNG.

Anyone any comments? I think this is the reason for the recent price weakness rather than decommissioning liabilities (way off in the future) or that "report".

[podgyted] 02/8/2019 15:10

Appalachian prices down 26% y-o-y.

[spangle93] 01/8/2019 21:36

Brief burst of Rusty on a rival channel (in case the link is removed, search recent videos offered by the opposite of reactive)

[...]

Nothing on decommissioning though.