Diversified Gas & Oil Share Discussion Threads

[dunderheed] 16/7/2020 12:44

Moving up nicely over past few days?
In anticipation of half year results - TW bad mouthing effect reducing?
Anyone any ideas - looks a nice business model with nice divs?

FB - did you buy any matey?
I have a few of these I hasten to add but nothing at all material?

[timchecco] 06/7/2020 21:42

First investment of Warren Buffett since Corona.

Warren Buffett's Berkshire Hathaway struck a $10 billion deal to buy Dominion Energy's natural gas transmission and storage business.
Berkshire's energy unit will pay about $4 billion in cash and shoulder $5.7 billion in existing debt in exchange for over 7,700 miles of pipelines, 900 billion cubic feet of storage, and other assets.
"We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business," Buffett said in a press release on Sunday.
The deal is Berkshire's biggest since its takeover of Precision Castparts in 2016, and comes after Buffett was panned for his inactivity during the pandemic.

Buffett is also sticking to his value-investing philosophy rather than giving up and paying higher prices. Natural gas futures tumbled to a 25-year low in June, allowing Buffett to buy Dominion's assets at a discount.

[lord gnome] 30/6/2020 13:14

Nice spot Neilyb675. Where did that come from?

[neilyb675] 30/6/2020 09:50

We expect DGOC's adjusted EBITDA (hedged) to grow 4% this year. By contrast, consensus estimates for a peer group of seven of the largest Appalachian gas exploration and production companies show an average decline in 2020 EBITDA of 36%. The divergence in performance is a consequence of the difference between DGOC's business model and that of its peers. New gas production at the peers stems primarily from drilling of unconventional wells subject to steep output declines (production in year two is less than half of production in year one). According to their own guidance, total CAPEX (largely drilling and completion) at the peers will be down 39% this year because of weak gas prices. If drilling declines, so does output. DGOC does not drill but acquires mature wells with stable production and low declines. It then maximises their efficiency, seeking to improve production from active wells and bring non-producing wells back into production. DGOC's most recent quarterly dividend of USD0.035 per share equates to an annual yield of 12.0%. The stability of the business model, two recent EBITDA per share-accretive acquisitions and a hedgebook in which we estimate ca. 78% of 2020 and 69% of 2021 gas production is hedged at USD2.69/MMBtu and USD2.62/MMBtu respectively should ensure the sustainability of the current dividend. In addition, the current market cap warrants the stock's inclusion in the FTSE 250 Index in September. Our recommendation is Buy with a price target of GBP1.30.

[pro_s2009] 30/6/2020 05:56

Worth a listen




.

[timchecco] 29/6/2020 17:09

They are kind enough to give other people time to buy their shares and you as well to increase your portfolio!

Be happy, good times lay ahead of us.

[lab305] 29/6/2020 16:54

Natural gas up 12.95% today. Dividend just paid so some reinvestment happening . Decent financial update. Above 11% dividend . The share price falls. WTF does the company have to do ?

[timchecco] 29/6/2020 14:46

Ridiculously low price currently. Thinking about selling other stocks and accept losses just to buy more DGOC.

Seriously cheap now...

[lab305] 29/6/2020 13:37

92p time to start up the share buybacks again and give the share some support . The market appears to be useless.

[simplemilltownboy] 29/6/2020 11:16

Good RNS regards financing. Cheasapeake filing chapter 11. Gas all time low, hedging in place. Sit back and relax whilst the divi rolls in. Expect another acquisition by end of year IMO with hedging in place. GLA

[petewy] 29/6/2020 10:28

Chesapeake filing Chptr 11.
Chesapeake Energy is the second largest producer of natural gas in the United States
In 2019, the company produced 484 thousand barrels of oil equivalent (2,960,000 GJ) per day, of which 69% was natural gas, 24% was petroleum, and 7% was natural gas liquids.

[poleaxe] 25/6/2020 13:26

So its a US company with US assets operating in the US that lists on the London market and paying 10% divi. so why are the Yanks not hoovering these up by the bucket load and pushing the share price up?. They obviously know much more about the company and those running it that we ever will, strange!

[fardels bear] 25/6/2020 09:43

But it doesn't, does it? If it paid over 10% Div AND had no debt, then it would look too good to be true.If there were no depletion rates, and no decommissioning costs, then it would look too good to be true.

[poleaxe] 24/6/2020 23:47

But just remember if it looks too good to be true.

[fardels bear] 24/6/2020 23:39

I once had 60% of my portfolio in Qara Dagh. Then I had 60% in Bentley. Nowadays, I don't have more than 20% in anything.

[timchecco] 24/6/2020 20:42

60% of my current portfolio is DGOC. I don’t even mind a drop from 110 - 95 as it just gives me opportunity to buy more. This gem will be found one day and then the price will go up way higher and on top of that I’ve received dividends of 10+% a year. You don’t hear me complain...

Best investment ever if you ask me.

[fardels bear] 24/6/2020 17:38

Yes I read that one as it was free for the most part. I've had my finger hard on the trigger on this one so long it's starting to go blue.

[spangle93] 24/6/2020 17:34

FB, ref 1698 - Strange, another part of his empire is now touting it

[fardels bear] 24/6/2020 16:15

Not so perky recently. Is winniefrith a knight in shining armour or a dump and pump merchant?

[fardels bear] 22/6/2020 19:09

So the Winnebago prophet of doom had little effect it seems.

[timchecco] 22/6/2020 17:35

Dhb368: I’m on your side regarding paying less dividend and use it to decrease debt. Not sure why they do this. Think more investors will come when stock price shows significant growth over the years.

Good news is two recent acquisitions of assets and moving to main market gaining a lot more exposure. Research done by independent analists and current market value between 140 and 160p. These extreme times of low gas and oil prices are in favour of DGOC as they can cheaper buy assets from other oil and gas companies that need cash and maintain a good cash flow because of smart hedging.

Not sure if future dividend can be maintained at this level, but even if they pay 50% of what they pay now would be nice.

So far the track record of DGOC is flawless. I find it almost funny to watch videos of Rusty over the years and continuously telling the viewers ‘this is what we promised and we (over) delivered every single time’.

Hope to be not wrong as I’m heavily in DGOC. Wells that have higher decrease or even no gas left anymore is something we can’t ever see as ‘small’ investors. But I think Rusty will be honest and wanting to take DGOC into the far future being a successful company as his whole family has been in oil and gas and he probably does not want to end up as the cowboy who failed...

Good luck everybody!