Agree and you get direct access to all the European majors via ENGY (no stamp).

The US ones (ETF SPOG) have fallen sharply relative to ENGY in recent months so not so much a big gap.

DEC is US.

I3E gets its revenue from Canada though they have UK exploration that allows us to buy without an NR 301 form.

You get outstanding value based in Canada (NR 301 form) and US (W-8BEN form) through volatility, yet they are often net cash small companies that can grow production like PTAL, SOUC, AXL (I have about a grand or so in each just for fun and they will never exceed 1-2% AUM). These have the potential to be multi-baggers.

All these stocks can be bought in a SIPP without the forms and are falling sharply every month until they start to grow again into the next cycle.

Outstanding opportunity for the savvy trader or long-term investor who does not mind the volatility.

May, July and August have often been good times to go overweight, but no guarantees.

From a couple of days ago on Proactive. The hedging comparison is quite interesting. Dividend (3.6p ish) payable on 28th March. It is tempting to top up at these SP levels but I already have a chunkster holding here. Think I’ll just enjoy the income, long may it last.

Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) (DEC) said it has completed the US$250mln acquisition of producing wells and facilities in its Central Region, in the United States, from Tanos Energy.

After making customary purchase price adjustments the net purchase price was US$244mln, the company noted in a statement.

“We are excited to complete another Central Region acquisition of accretive, high-quality assets, further increasing our operational scale in the region,” said chief executive Rusty Hutson in the statement.

DEC said the acquisition has added 17,000 barrels of oil equivalent production per day to the company's portfolio, with some 25mln barrels oil equivalent of proved developed producing (PDP) reserves across the acquired asset base.

On top of that, the company sees substantial upside potential within the acquired acreage with some 50 undeveloped well locations identified across the asset base, which according to DEC could yield some US$280mln of value to the portfolio.

Also acquired in the deal is a basket of hedge arrangements, which sees 60% of the acquired production with an average gas price-floor of US$3.80 per thousand cubic feet (Mcf) in 2023 compared to the wider DEC portfolio which is 80% hedged at US$3.65 per Mcf.

The acquisition was part-funded by proceeds of a recent US$163mln equity raise, along with cash on hand and existing borrowing facilities.

Hutson noted: “Leveraging the recent reduction in natural gas prices, the net purchase price equates to a low multiple of the assets' net annual cash flows and approximates a PV17 value.

“Having acquired the assets with a foundation of hedge protection, we will begin our usual asset-optimisation work while opportunistically adding to the hedge portfolio with an eye towards protecting and expanding already strong margins that underpin our tangible returns for shareholders through commodity price cycles and create long-term value.

“I would like to thank our lenders for their continued support, demonstrated by a 50% increase in the borrowing base of our sustainability linked loan, and our investors for their support during the concurrent equity raise, which collectively enhance our balance sheet and position us for continued success."

Held this for a while. Sold sometime back. Total returns better elsewhere. Present price looks excellent.
Excellent dividend.
Would not consider buying again unless I was using a competent brocker who was willing to accept a w8ben and remove all withholding tax within a SIPP. 13% dividend with dividend growth is well above the market average total returns... any market average!
Ignoring risk. Which it is not lacking.

Quarterly trading update is interesting. I won’t claim to understand the production units (!) but the hedging seems to be working?

Diversified Energy Company PLC (LSE:DEC) is pleased to announce it is trading in line with expectations and provided the following operations and trading update for the quarter ended 31 March 2023.

Delivering Reliable Results

• Recorded average 1Q23 production of 139 Mboepd (833 MMcfepd)
◦ Exit rate of 145 Mboepd (872 MMcfepd)
◦ Includes 15% liquids; Up 30% since entering Central Region

• Net income of ~$400 million inclusive of a ~$365 million gain on tax-effected, non-cash unsettled derivative fair value adjustments
• Achieved 1Q23 Adjusted EBITDA of ~$150 million(a)
• Realised 54% Cash Margin(b) benefiting from lower expenses
• Annualized Free Cash Flow Yield(c) of ~37% (1Q23 of ~9%)
• Total Unit Cash Expense(e) of $10.46/Boe ($1.74/Mcfe); ~6% improvement compared to 4Q22
• 2.3x Net Debt / Adjusted EBITDA leverage ratio(f) and ~$110 million of liquidity(g)

Executing Strategic Objectives

• Declared 1Q23 interim dividend of 4.375 cents per share, consistent with 4Q22; up 3% vs. 1Q22
• Completed Tanos II asset acquisition
• Maintained favourable natural gas hedge position; 2023 average floor pricing 35% above strip for remainder of 2023(d)
• Completed ~$6 million in non-core undeveloped acreage sales across the Company's operating footprint

Not my area but surely they are insured against such events?