Diversified Gas & Oil Share Discussion Threads

[mondex] 25/1/2021 15:48

EIA

The largest net increase in proved reserves of U.S. natural gas in 2019 was in Ohio at 10.4 Tcf—the result of continuing development of the Utica/Pt. Pleasant shale play in the Appalachia Basin. Pennsylvania had the second-largest net increase at 2.4 Tcf in 2019, and Louisiana had the third-largest net increase at 2.4 Tcf. Development of the Marcellus and Haynesville shale gas plays outpaced the downward impact of the natural gas price decline.

hxxps://www.eia.gov/todayinenergy/detail.php?id=46517

[scrwal] 25/1/2021 10:35

DGOC is probably classed as a foreign company - its HQ is Birmingham , Alabama and only has shares quoted on the FT250. So long as no share register is maintained in the UK no stamp duty should be payable.

Technically you don't need to have a W-8BEN to buy any shares as it is only a form to deal with withholding tax. Brokers insist one is filled out to buy US shares as this is the easiest way to get holders to sign the form so that the tax situation is set up from the start. Shares like DGOC fall outside this remit so brokers seem to do their own thing.

[2wild] 24/1/2021 19:57

I mainly use Lloyds and had DGOC in both dealing and ISA accounts and they took 30% on both, as i was unaware of w8ben forms.

Lloyds also continues to charge No stamp duty following move to main market. This is also the case with PCA following their move around 18 months ago. So i assume they don't penalise companies who move to main market, by not imposing stamp duty.

[fardels bear] 23/1/2021 13:50

I'd agree with your conclusion.

[cassini] 23/1/2021 13:00

Well, Interactive Investor (ii) lets me hold them in a SIPP and I haven't knowingly done any W-8BEN paperwork - just the setting up of a SIPP in my name.

The dividend showing up in my SIPP just before Christmas was 3.75 cents/share, which is the full amount I believe, no tax deducted.

What with this and the fact ii appear not to be charging stamp duty on DGOC either, I think I'll stick with ii and not change to HL any time soon!

[fardels bear] 23/1/2021 11:46

Not according to HL. Not only will they not let you buy them without W8-ben, they'll automatically sell any USA or Canuck stock you already hold when your W8-ben expires.

[cassini] 23/1/2021 01:11

I think if you hold these in a SIPP the dividends are automatically exempt from withholding tax without needing a W-8BEN.

[fardels bear] 22/1/2021 23:15

Yeah. They charged me another 79 quid in Stamp Duty this afternoon. :(

[podgyted] 22/1/2021 22:49

Thanks scr for clearing that up.

But I did check again today - ii do not charge SD but HL do - and I do get the dividends from ii at the reduced rate of with-holding tax.

Go figure.

[scrwal] 22/1/2021 12:53

The company is treated as a US corporation under s7874 of The Internal Revenue Code. Reckon this is because all income etc is generated in the US.

The thing with ii is that you could buy the shares without a W-8BEN and can get caught out with the dividends if you are unaware of the ramifications.

[podgyted] 22/1/2021 00:57

Actually Matt, thinking about it, this still doesn't make sense. If it's a UK registered company why am I subject to withholding tax (reduced by a W8-BEN) on dividends from a US company?

Too late to ponder tonight!

[podgyted] 22/1/2021 00:45

You're right Matt - I've checked the 2019 AR and they are registered in England - assumed since their HO was in US they were registered there.

Weird.

Still say buy through ii - if they don't charge SD it's their problem.

[matteo1989] 21/1/2021 23:56

I don't think that's quite right - POLY are incorporated in Jersey so stamp duty not payable despite being FTSE100, but DGOC are incorporated in the UK and no longer aim listed so HL are right to charge stamp duty IMO

[podgyted] 21/1/2021 23:33

Lab - try a phantom buy on POLY - FTSE 100 - no stamp duty payable - not a UK company.

[podgyted] 21/1/2021 23:30

Not a UK company - no stamp duty payable.

I buy it using ii - no stamp duty - try with HL they charge.

[lab305] 20/1/2021 19:42

Stamp duty became payable when it left AIM and entered FTSE250.

[fardels bear] 20/1/2021 19:40

That's interesting. How do you know they don't have to?

[podgyted] 20/1/2021 19:35

Be careful with HL - they insist on charging stamp duty on this share when they don't have to.

[lab305] 20/1/2021 11:12

The Count you will have to use another broker. Barclays are poor and will not make sure that you pay 15% and not 30% withholding tax on dividends. Because of that they won't even deal with the stock even though it is now in the Ftse 250. Disgraceful.
Move to a broker that works for you not against you. Jarvis are good and charge around £6 per trade.

[tim000] 20/1/2021 10:45

Barclays seems to be an outlier. Interactive Investor and Hargreaves Lansdown trade the shares with no problems. I can’t recall whether you need to sign a WBEN form to avoid tax on the dividends, but both of these providers handle WBEN forms with no problems. Personally I recommend ii as they give access to nearly all shares in the US, Canada and Australia. I recommend looking at Australian shares as they are booming from the nascent commodity super cycle, eg iron ore miners.

[mo2550] 20/1/2021 10:44

Strange - HL just bought 4500 @ 115.196

[the count of monte_cristo] 20/1/2021 10:21

I tried to buy some this morning through my Barclays Share dealing account for the ticker wasn't even listed, when I contacted Barclays about it they told me that they cannot list it because of the US tax issues, or something. So how are you guys buying this stock?

[fardels bear] 18/1/2021 10:05

The problem with articles like that is that they are still saying oil and gas in the same breath. The two have been diverging for years now and have markedly different prospects. The fact that the author doesn't acknowledge /seem to know this would prevent me from taking the article seriously.

[burtond1] 18/1/2021 09:55

With much of the Western world still in various states of lockdown, how strong will the recovery in #Oil be, and what companies are best placed to benefit?We consider the sector's prospects for 2021#RDSB #BP #DGOC #TXP #DELT #RBD #IOG #WTE #ADME #ENQhttps://total-market-solutions.com/2021/01/green-shoots-for-oil-and-the-energy-sector/

[mondex] 14/1/2021 14:32

From S&P Global Platts:

Dominion South market rally pushes Appalachian gas production toward record

Recent strengthening in Appalachia's cash and forward natural gas markets is lifting regional production toward record highs this month as operators there book their highest prices since November 2019.
Over the past week, the cash market at Appalachian benchmark Dominion South has averaged over $2.30/MMBtu. On Jan. 12, spot prices surged another 17 cents, climbing to a fresh 14-month high at $2.44/MMBtu, intraday trade data from Intercontinental Exchanged showed.
In the forward market, prices for January, February and March are now averaging $2.27/MMBtu, or their highest since mid-November, S&P Global Platts' most recently published M2MS data shows.

Demand, storage
Rising prices in Appalachian gas markets come as demand in the US Northeast trends near seasonal highs and as regional storage inventories rapidly narrow their surplus to the five-year average.

In January, Northeast demand has averaged about 29.5 Bcf/d, or its highest since last winter. According to Platts Analytics, regional demand would need to remain around its current level through the end of January to perform at par with its weather-normal average.

So far this month, stronger demand has helped to draw down the Northeast gas storage surplus. As of Jan. 12, regional inventories are estimated at 760 Bcf, according to Platts Analytics data. After trending more than 85 Bcf above the five-year average earlier this winter, the Northeast storage surplus has now dwindled to just 19 Bcf.