Diversified Gas & Oil Share Discussion Threads

[nimbo1] 30/4/2018 07:11

all looks excellent to me, this company is a cash machine as far as dividends are concerned.

[blueeyes13] 23/4/2018 12:11

Appreciate that Nimbo, be great to get the feedback. I've also built up a relatively large position here now as the company looks undervalued with good divi and there should be continued positive newsflow the next couple of years. Plus POO increasing is a bonus. I'd like to see them bed in the recent large acquisitions for a while before making any more significant acquisitions. Bolt ons I don't mind. Regards

[nimbo1] 23/4/2018 11:50

I am going to that lunch so will report back. Built up a decent position close to 80-83 and may accumulate more depending on what I hear.

[lord gnome] 23/4/2018 11:04

I would hope that we will get guidance with the results next Monday. With production ramping up, the cash flow should be strong. 2 cents per qtr would be nice, although I see that Stockopedia has them down for 6.8 cents for the year.

[nimbo1] 23/4/2018 10:25

Good operational update on the management side this am. Does anyone have any views on what the dividend might be for the next dgoc financial year, from the start of the 1/4'erly payments?

[spectoacc] 21/4/2018 07:26

True - more damaging is the "anonymous report" type, where they take a short and then declare what they've seen (eg IQE). Still seems odd though - if you were eg long oil/short an oil co, you'd be unlikely to make it DGOC.

[blueeyes13] 20/4/2018 16:31

Shorts of course can also be a hedge against another trade so doesn't always mean they believe the co fundamentals or industry has issues.

[lab305] 20/4/2018 08:41

I have seen nothing negative to warrant Mangrove short selling . The banks and institutions will have done due diligence before the two recent takeovers. Both seem to have gone smoothly and the share price is not far above the price paid for the new shares.
It seemed obvious to me that someone was shorting but that was not confirmed until they went above 1%. There is always the suspicion that these short sellers must know something negative to justify their position spooking some small holders into selling. Remember that there are many more much larger institutional holders supporting the stock. Only ten days to the results and we already have notice of a 56% rise in the dividend.This may well cost Mangrove dear.

[martinthebrave] 19/4/2018 18:23

The Mangrove Partners Master Fund, Ltd have opened a 1.02% Short here. Anybody understand what they might have seen?

[snatchadams] 12/4/2018 11:35

The management of DGO is hosting an investor lunch on the day of its FY Results (30 April). The lunch will take place at the offices of its PR agency Buchanan (107 Cheapside, London, EC2V 6DN). If you are interested in attending this lunch then please contact [e-mail] to confirm your attendance. Only those who have emailed to confirm their attendance will be allowed to join.

[nikki40] 03/4/2018 07:28

i like regular announcements. they get shareholders....

[nikki40] 03/4/2018 07:26

quarterly is so juicy.fire power for more acquisitionsefficient integrationdangling the carrot on acreage (exploration) inferring divvy increase given scale of business now

[spectoacc] 03/4/2018 07:23

Moving to qtly divis next year, and:

"CEO Rusty Hutson commented:

"While 2017 was undoubtedly a remarkable year for DGO, the month of March 2018 has produced the most transformative catalysts to our business since admission to AIM. Over the past 30 days, we have nearly tripled our net daily production, more than tripled our PDP reserves and halved our cost of borrowing. As of today, we are one of the largest production companies on AIM and have a diverse and impressive acreage position underpinned by a substantial proven reserve base with minimal decline rates"

[lord gnome] 27/3/2018 16:38

Hi Pooto. You will need to go through Barclays to complete a W-8BEN form, but it should be available on line for electronic completion and submission. Then again, with Barclays, maybe not.

[plootocrat] 27/3/2018 14:42

I am new to this stock so please excuse my ignorance:

1. Is the date known for announcement of 2017 year end figures? Trawling back through RNS releases I can only find a reference to "no later than 30th April"?

2. If I purchase through Barclays Smart Investor will they deal with recovering US Withholding Tax on dividends or does each individual investor have to complete a W-8 BEN form? I could ask Barclays myself of course but haven't got a spare hour to get through to somebody who would know the answer.

Many thanks

[nimbo1] 23/3/2018 08:52

I want to build a larger holding here but every day there is c.150k shares on the sell side and 50k on the buy side on l2 at the moment.

edit: got first tranche.

[spectoacc] 17/3/2018 07:49

"Moving so fast" is accurate - how long before the next deal I wonder? All good for us shareholders though - that "25 years of reserves" will keep getting expanded IMO.

[5chipper] 17/3/2018 07:28

Rusty has given an ebitda guidance of $70-75m, which gives a p/ ebitda of 5. Though, of course, any new debt financed acquistions will boost ebitda without further dilution.

I think the 28000 boepd is a gross figure with a net figure of 19 boepd. Although, i'm not sure how gross and net production figures are calculated.

[lab305] 16/3/2018 20:43

Schipper. In the interview with Hutson (note the spelling!) on 1 February 2018 on Proactive investors he states that after the latest acquisitions DGOC will produce around 28000e bopd. I continue to buy and consider the forward pe based on the current share price will be much lower than 5.
The only problem is that the company is moving so fast that released results are way out of date and never remotely reflect the true value of it. One day investors may awaken to what is happening here. The share price is far too low and April results may focus attention back but of course the company will be almost three times larger than it was when they were produced.

[lord gnome] 16/3/2018 18:44

I think I read somewhere that the plan was to pay out 40% of free cash flow as dividends (but I may be wrong) if so, the yield would be a 'mere' 8%. Other than that, I agree with your number crunch. Kinda makes you wonder why these shares are so lowly rated, but I suppose it's nice to get in ahead of the herd. Lots of headroom here for the share price to double, but let's not get too greedy.

[5chipper] 16/3/2018 17:39

An attempt to crunch some of the numbers here:

According to the 2017 Interims they were receiving $17.5 per boe (revenue of $10.2 / 581,000 barrels produced).

Following the Titan acquisition they managed to reduce their production costs per barrel down to $7.14. Therefore giving a profit per barrel of $10.36.

The most recent acquisition gives DGOC a new production target of 19,000 boepd.

19,000 x $10.36 x 365 = $71.9m. This ties in nicely with Rusty Hudson's forecast of ebitda of between $70-75m.

Reserves have been increased by 217% to 173.2 mmboe which provides enough for 25 years production at the current rates.

Using these forecast figures and assuming today's currency rates then DGOC sits on a p/e of 5x with 25 years worth of reserves in place and the prospect of margins being increased following the realised synergies of the 2018 acquisitions.

One concern is the future price of boe natural gas, but note 13 in the interim's gives a good breakdown of their future hedging contracts.

Now they have financing at 4.5% in place for future acquisitions I assume that profits can be paid out as dividends. If half of the $35m was paid as a dividend next year then at current prices that equates to a yield of 10%.

[nimbo1] 26/2/2018 15:34

500,000 went through at 2pm @ 91p. That you buying in Sogoesit?! I bought some of these on Friday.

[sogoesit] 25/2/2018 18:11

Indeed a good story founded on a good strategy imo.
Will be swapping some of my RDSB for this next week.

[lord gnome] 20/2/2018 10:57

Added some more. There is a good story developing here. Takes me up to a nice round number. A slight over-allocation for the portfolio, but I reckon it's a good risk/reward with the prospect of good dividends to come.

[lord gnome] 20/2/2018 08:34

I note also that Rusty plans to use some of the new facility to finance his next deal or three. No further dilution on the horizon, then. The more this company develops, the more I see to like.