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Dividends, deficits and debt … DEC results out today
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John Bran
Posted: 19 January 2024 22:00:09(UTC)
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Phil 2 on 19/01/2024(UTC)
John Bran
Posted: 23 January 2024 14:11:27(UTC)
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Can this fall any further? and !!!
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Anthony French
Posted: 23 January 2024 14:55:56(UTC)
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yes
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John Bran on 23/01/2024(UTC)
Phil 2
Posted: 23 January 2024 16:54:16(UTC)
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John Bran;293565 wrote:
Can this fall any further? and !!!


It’s a hoot isn’t it ?! Apparently they’re being shorted further by some US chancers, amusingly called Snowflake. You couldn’t make it up really.

Edit: new shorters are actually called Snowcap !
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John Bran on 23/01/2024(UTC)
John Bran
Posted: 23 January 2024 19:15:58(UTC)
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I have been looking at my recent purchase of GRID it's doing the same thing although not to the same extreme.
If they can fall where profits are bound to rise when assets come on stream then where is the bottom for DEC? and !!!
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Phil 2
Posted: 23 January 2024 23:24:46(UTC)
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John Bran;293589 wrote:
I have been looking at my recent purchase of GRID it's doing the same thing although not to the same extreme.
If they can fall where profits are bound to rise when assets come on stream then where is the bottom for DEC? and !!!


The OB has responded to the recent Snowcap shorting report in typically robust style - https://theoakbloke.subs...&utm_medium=reader2

Shorters usually sound unscrupulous to me, but we’ll see. Sometimes these things take eons to resolve themselves. Burford certainly seemed to drag on.

After the UK SP fell by 12%, the US equivalent plummeted by 18% but then rose to finish -3% on the day. Never a dull moment!
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John Bran on 24/01/2024(UTC)
Phil 2
Posted: 24 January 2024 07:17:55(UTC)
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DEC has just released a further, brief response … the main takeaway being confirmation that results will be out before 31st Jan. Now those numbers should be very interesting. To my limited brain, their hedging in a low gas price environment, combined with the slightly odd (to me) compulsory accounting rules, means that reported profits are higher than they would “normally” be.

Their view of the Snowcap “research” is suitably scathing.

Diversified Responds to Share Price Movement

Diversified Energy Company PLC (LSE: DEC; NYSE: DEC) is providing an update regarding the recent movement in the Company's share price. The Company and Board of Directors are aware of the recent opportunistic report published by a short seller which repeats previously stated claims that the Company has already transparently and proactively addressed with investors and other stakeholders. This report contains numerous inaccuracies, ignores specific financial and operational results and sustainability actions, and is designed for the sole purpose of negatively impacting the Company's share price for the short seller's own benefit.

The Company continues to focus on delivering long-term shareholder value, prioritization of outstanding debt reduction, and evaluating strategic growth and accretive value-additive opportunities. As previously announced, the Company plans to provide its year-end trading statement by January 31st.

Diversified is an important part of the solution amid the energy transition to consolidate, and retire existing U.S. energy infrastructure assets, drive economic growth and deliver emission reductions, and remains committed to the responsible ownership and operation of our assets.
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Old Scientist on 24/01/2024(UTC), John Bran on 24/01/2024(UTC)
Old Scientist
Posted: 24 January 2024 09:39:17(UTC)
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Looking at the scars on my hands from previous attempts to catch falling knives, I'm sitting this one out and watching from the sidelines (at least I'm learning from my mistakes!)

Phil 2;293613 wrote:
DEC has just released a further, brief response … the main takeaway being confirmation that results will be out before 31st Jan. Now those numbers should be very interesting. To my limited brain, their hedging in a low gas price environment, combined with the slightly odd (to me) compulsory accounting rules, means that reported profits are higher than they would “normally” be.

Their view of the Snowcap “research” is suitably scathing.

Diversified Responds to Share Price Movement

Diversified Energy Company PLC (LSE: DEC; NYSE: DEC) is providing an update regarding the recent movement in the Company's share price. The Company and Board of Directors are aware of the recent opportunistic report published by a short seller which repeats previously stated claims that the Company has already transparently and proactively addressed with investors and other stakeholders. This report contains numerous inaccuracies, ignores specific financial and operational results and sustainability actions, and is designed for the sole purpose of negatively impacting the Company's share price for the short seller's own benefit.

The Company continues to focus on delivering long-term shareholder value, prioritization of outstanding debt reduction, and evaluating strategic growth and accretive value-additive opportunities. As previously announced, the Company plans to provide its year-end trading statement by January 31st.

Diversified is an important part of the solution amid the energy transition to consolidate, and retire existing U.S. energy infrastructure assets, drive economic growth and deliver emission reductions, and remains committed to the responsible ownership and operation of our assets.


The highlighted part above concerns me - if they were to slash the dividend to prioritise reduction of outstanding debt, the sp could fall further, although would presumably still be a high percentage yield and would add some certainty to proceedings.

Either way, I've already bought my popcorn and am content to watch the show.
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ANDREW FOSTER on 24/01/2024(UTC), Phil 2 on 24/01/2024(UTC), John Bran on 24/01/2024(UTC)
John Bran
Posted: 24 January 2024 20:22:51(UTC)
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Up 12% today.....dead cat bounce!!
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Phil 2 on 24/01/2024(UTC), Old Scientist on 25/01/2024(UTC)
MarkSp
Posted: 24 January 2024 21:12:26(UTC)
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John Bran;293709 wrote:
Up 12% today.....dead cat bounce!!


More likely the Snowflake twins bricking themselves

It is the same story with the same conclusion as the last four.

Interesting that the Snowflake twins don't seem to understand mark to market on hedged transactions. DEC orthodox P&L is a farce, they make of lose hundreds of millions every quarter............. all of it gains and loses are noise

What really made me laugh was the debate about year 28 or 38 in a 50 year DCF model. Who the hell knows. Might as well try and forecast the oil price in 2060.

I especially enjoyed The Snowflake twins pointing out that if you used different assumptions in the DCF model, the results would be very different.

If DEC halved the divi today the SP would probably rise and it would still be on a 15% yield

If I were DEC, I would announce an early XD and give the Snowflake twins the opportunity to fund a few million x 69p

:In the meantime, this is a fantastic trading stock for day trading. I love it !!
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Phil 2 on 24/01/2024(UTC), John Bran on 26/11/2024(UTC)
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