Diversified Gas & Oil Share Discussion Threads

[damp seaweed] 25/9/2019 18:26

Do bare in mind that some brokers may be a bit more competent/ capable than LLOY/Halifax/IWeb and only withhold 15%.
You should check with your broker

[damp seaweed] 25/9/2019 18:23

They are scheduled to pay $US 3.5c (ex div 28/11)
If that was annualised then the gross div would be US$14c or ~ 11.33p. So @106p we get a gross yield of ~10.69%......At 30% tax that would be ~7.5% net.

[alotto] 25/9/2019 17:50

2Wild is it 9pc net of that 30% tax?

[alotto] 25/9/2019 17:49

Dampseaweed
Thanks for sharing

[damp seaweed] 25/9/2019 17:29

I was checking out the dividend tax situation with my Broker IWeb (read across to LLOYDS and Halifax).
It seems that I might have to pay 30% even from my ISA account;
Quote............

‘’Ordinarily if 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 ‘’...........

Makes DGOC dividends somewhat less attractive

[2wild] 25/9/2019 13:55

Looking very cheap now. Topped up at 105.92p giving 9% yield after withholding tax.

[bountyhunter] 24/9/2019 22:18

Q1 Divi payday on Friday

[bountyhunter] 24/9/2019 22:01

Could be a reverse head and shoulders forming on the long term chart? That's if you believe in charts.
Gas prices should be rising soon as we approach winter so charts aside that's what I would base my expectation of an upturn on.

[alotto] 24/9/2019 21:07

Quite concise. I hope you're right coz recent updates were very good. I expect some more buyback tomorrow on the back of the price drop.

[alotto] 24/9/2019 18:03

Hello Everyone! have we just entered into another downturn today?

[2wild] 15/9/2019 15:55

Cheers. Already one of my largest holdings at 4.6% of my portfolio. But do like to buy dips and sell spikes. 0.5% of turnover can make a big dent in profits over time, as your timing can't always be good. Seem to do better on AIM stocks. Hopefully the spread will narrow.

[lab305] 15/9/2019 15:17

Yes. Better get on quick !!!

[2wild] 15/9/2019 15:04

Does move to main market mean we will start paying stamp duty?

[hiddendepths] 12/9/2019 09:52

I suspect main market will be highly positive for share price Plenty of income funds can only buy main market stocks and they'll be all over this one!

[aishah] 12/9/2019 08:43

Good to get confirmation on the full listing move. Will concentrate minds now. Here's TMI's take from latest issue:

Diversified Gas & Oil - 475% jump in EBITDA underpins double digit yield
101p Epic code: DGOC

(Momentum Investor) Diversified Gas & Oil (DGOC) announced strong first half results (to end June) with production rising 292% to 75,696 barrels oil equivalent per day while adjusted cash profits (EBITDA) rose 475% to US$131m. Average realized gas prices rose from US$2.40 per 1,000 cubic feet gas to US$2.66. While gas prices have tracked Brent crude oil lower, DGOC’s policy is to hedge significant future output and its hedge portfolio is valued at US$60.6m, providing good protection from any falls. EBITDA margins were unchanged at 54%.
Strong cash flow also meant it paid US$400m for the major acquisition of assets from HG Energy (completed this April), and yet it still paid down US$2m debt, leaving net debt at US$613m against total borrowing capacity of US$950m while net debt / EBITDA remained at just 2.0x. That encouraged it to declare a second quarter dividend of 3.5 cents, up from 2.8 cents a year ago.
The group continues to look for deals and has put in a conditional US$50m offer for assets owned by EdgeMarc Energy.
The prospect of more deals, the attractive dividend yield of c.11%, the move to the Full List, ongoing share buy back at attractively low prices and two further director purchases of a combined 85,000 shares (at between 98p-103p) are all reasons we are firmly sticking by the shares, which look cheap.

[lab305] 12/9/2019 08:03

Good timing Aishah. Today's announcement is excellent news . The move to the main market will focus much more attention on this undervalued share whilst the higher standards of scrutiny demanded by a premium listing will put to bed all the negativity created by the blog. Good news.

[aishah] 11/9/2019 11:34

Maiden purchase today.

[alotto] 08/9/2019 21:19

Very strange. Enquiry directly with Barclays and let us know

[aishah] 31/8/2019 12:09

When are they moving from AIM to Full Listing?

[bountyhunter] 29/8/2019 21:40

Buybacks continue, fine by me while the share price is around this level. As can be seen from today's announcement it's not as if they are holding them in treasury to give away to directors at a later date as some companies do.

"Diversified Gas & Oil plc (AIM: DGO), the US based owner and operator of natural gas, natural gas liquids and oil wells as well as midstream assets, announces that, in accordance with the terms of its share buyback programme announced on 30 April 2019 it has purchased 401,500 ordinary shares of 1 pence each in the capital of the Company (the "Shares") in the market at a volume weighted average price of 103.748 pence per Share at the discretion of Stifel Nicolaus Europe Limited ("Stifel"). The Shares acquired will, in due course, be cancelled."

[kenmitch] 29/8/2019 13:48

I agree that Next are a good example of how to do buybacks in that they only do them when thinking the shares are too cheap. Most Companies buyback without considering whether they are doing them at a sensible price.

Unfortunately it’s impossible to prove that buybacks work, because with successful Companies like Next their share price would increase over time whether or not they bought back their shares.

And where the share price subsequently fell after and during buybacks it’s likely the share price would have fallen anyway.

Btw....even Next have come unstuck with buybacks sometimes. E,g after buying back in the £60s the share subsequently fell to £36. I bought at £38, and feel even with Next I have been far better “rewarded̶1; than shareholders who bought in the £60s and perhaps encouraged to do so by positive comment then about Next buyback policy.

[lab305] 29/8/2019 10:59

Next, Bat , Evraz all examples of successful buyback schemes. Regardless of anything else this company's stock is severely undervalued paying nearly 10% in dividends. It is able to borrow at considerably less than that thereby saving millions per year. Continuing results such as the recent interims will eventually outweigh scepticism and the share price will rise to a sensible valuation. Meanwhile I can live with 9%+ interest on my investment.

[kenmitch] 29/8/2019 09:59

Yes; buybacks reward Directors if bonus based on eps, and very often those shareholders who sell ahead of a buyback programme. News of a buyback usually gives the share a lift on the day it’s announced, and investors who sell then often do well. If, as happens more often than not, the share price goes lower during a buyback programme, then those who stay invested lose, while those who sold are out at a higher price.

There are endless such examples. Have a look at Standard Life Aberdeen. Relentless falls all the while they were buying back, with share 30% lower than at the start. And guess what? They are going to start another buyback programme!

Buybacks DO mean eps higher than they would have been if not buying back, but if the business is not doing well, or investors sell, that does not guarantee a higher share price.

Where buybacks are worth doing DOES apply with DGOC. That’s to hit shorters IF there is a dubious blog or other damning unjustified attack. That applied with Paysafe. They responded to a totally spurious attack by buying back....and after that they went to a much higher price after a bid. IF that DGOC blog is also spurious then current buyback justified.

Finally the nonsense spouted on so many bbs and in the Press that buybacks mean a higher share price would mean that all investors had to do to ensure a successful investment would be to buy shares only in Companies buying back to win every time.

If only it was that easy!