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Dividends, deficits and debt … DEC results out today
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Phil 2
Posted: 19 February 2025 16:16:14(UTC)
#191

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Low 12’s (£) seems like a huge overreaction, down -8.5% stateside, especially when they won’t even announce the price of the new shares until the time of issue (I assume).

So just added £3,750 of “new shares” at 1214p 🙂
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what me worry? on 19/02/2025(UTC), John Bran on 19/02/2025(UTC)
John Bran
Posted: 19 February 2025 18:38:50(UTC)
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Can't see them selling the shares to cheap.....although it will reflect the market rate which isvconsiderably cheaper today!
They can’t sell them to cheap as the maverick sale hasn't gone through yet and ??
Have they agreed how many shares maverick get? Or is it based on a price for the asset?
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Phil 2 on 19/02/2025(UTC)
John Bran
Posted: 19 February 2025 20:44:41(UTC)
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As an aside!
Natural gas prices US up 8.5% today god knows how far the share price would have fallen if it wasn't for that.....or how high the share price would have risen if they hadn't announced the share sale!!!

Edit up 9.5% for short while

https://tradingeconomics.com/commodity/natural-gas
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Phil 2 on 19/02/2025(UTC)
Phil 2
Posted: 19 February 2025 22:59:15(UTC)
#193

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John Bran;335050 wrote:
Can't see them selling the shares to cheap.....although it will reflect the market rate which isvconsiderably cheaper today!
They can’t sell them to cheap as the maverick sale hasn't gone through yet and ??
Have they agreed how many shares maverick get? Or is it based on a price for the asset?


I think the SP nearer the time dictates the #shares as only the $value has been agreed so far?

This is interesting… just as a reminder that this deal isn’t just transformational, Rusty normally only makes acquisitions at decent prices, even if they do all seem to hammer the SP !!


“We've actually been talking to this company off and on for about three years. It's taken three years to get to a point where we were able to cut a deal. The thing about commodities is everything's volatile. Natural gas prices, oil prices — they're all over the place. Especially in 2022 and 2023 you saw a lot of volatility.

That volatility is very difficult because you have this buyer-seller bogey that you're trying to cover. But they did a full process starting last summer, which we were involved in, and we were down to a couple last two people. We were able to work the deal out. We were looking at a deal that two years ago would probably cost us $1.81 or $1.9 billion. We bought it for $1.275 billion. The patience helped and definitely paid off.”
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John Bran on 20/02/2025(UTC)
John Bran
Posted: 20 February 2025 07:35:59(UTC)
#195

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BIRMINGHAM, Ala., Feb. 19, 2025 (GLOBE NEWSWIRE) -- Diversified Energy Company PLC (LSE: DEC; NYSE: DEC) (“Diversified” or the "Company"), an independent energy company focused on natural gas and liquids production, transportation, marketing and well retirement, today announces the pricing of its previously announced underwritten public offering (the “Offering”) of 8,500,000 ordinary shares (the “Shares”) at a public offering price of $14.50 per Share for total gross proceeds of approximately $123.3 million. The Offering is expected to settle on February 21, 2025, subject to customary closing conditions. In addition, Diversified has granted the underwriters a 30-day option to purchase up to an additional 850,000 ordinary shares at the public offering price, less underwriting discount.


https://ir.div.energy/ne...ering-of-ordinary-shares
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Phil 2 on 20/02/2025(UTC)
Phil 2
Posted: 20 February 2025 08:00:33(UTC)
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Well that explains yesterday’s tumble, glad their capped wells (probably) aren’t as leaky as their confidential information.

In a separate RNS today …

Diversified Energy Company PLC is conducting an underwritten public offering of up to 8,500,000 ordinary shares at an offer price of US$14.50, with stabilisation activities managed by Citigroup Global Markets Inc. The stabilisation period starts on February 20, 2025, and ends by March 22, 2025. An over-allotment option for up to 850,000 shares is also available. The announcement is for informational purposes and does not constitute an offer to investors outside of specified jurisdictions.


This is apparently a Stabilisation Notice. A new one on me. Anyone?!
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Phil 2
Posted: 20 February 2025 08:14:17(UTC)
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FYI $14.50 is £11.51 according to Google. So if the 🇬🇧 SP gets down to those depths, that might well be la derrière in this cycle, particularly given elevated HH gas prices.
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Nigel G
Posted: 20 February 2025 09:51:33(UTC)
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Phil 2;335078 wrote:
Well that explains yesterday’s tumble, glad their capped wells (probably) aren’t as leaky as their confidential information.

In a separate RNS today …

Diversified Energy Company PLC is conducting an underwritten public offering of up to 8,500,000 ordinary shares at an offer price of US$14.50, with stabilisation activities managed by Citigroup Global Markets Inc. The stabilisation period starts on February 20, 2025, and ends by March 22, 2025. An over-allotment option for up to 850,000 shares is also available. The announcement is for informational purposes and does not constitute an offer to investors outside of specified jurisdictions.


This is apparently a Stabilisation Notice. A new one on me. Anyone?!

I found this which may be helpful...

Quote:
Price stabilisation

The process whereby the market price of a security is manipulated in order to achieve a successful offer. The manipulation of the market price is for the limited purpose of preventing or slowing down a decline in the price of the security. It is done, broadly, by one of the bookrunners in respect of a new issue of shares or bonds (commonly called the stabilising manager) buying and selling the securities in the open market. Stabilisation creates the impression that there is demand for the securities at a particular price or at various prices.

For the purposes of the market abuse regime, stabilisation means a purchase or offer to purchase securities, or a transaction in associated instruments equivalent thereto, which is undertaken by a credit institution or an investment firm in the context of a significant distribution of such securities exclusively for supporting the market practice of those securities for a predetermined period of time, due to a selling pressure in such securities.
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John Bran on 20/02/2025(UTC), Phil 2 on 20/02/2025(UTC)
John Bran
Posted: 20 February 2025 10:44:51(UTC)
#199

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Sold some at £13.38 10th February. Surprise surprise wish I had sold more!! Still in profit on the remaining (the majority) ....just.
DEC Share price is quite chaotic and with the possibility of Russian gas coming back on line, I will not be a long term holder, at least not of the total holdings.
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Phil 2
Posted: 20 February 2025 11:44:54(UTC)
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Just one more thing to note … DEC goes ex-dividend a week today, for 29c … ie well within the “stabilisation” period. Wonder how that will work in practice? Might they theoretically have to buy a ton of their own shares next Thurs if going ex-div takes the SP below the limit?

Taking 29c off last night’s US close = $14.70 ish so SP would have to fall another 20c+ in the meantime (or overshoot southward on ex-div day). Probably won’t happen but we’ll see.
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what me worry? on 20/02/2025(UTC), John Bran on 21/02/2025(UTC)
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