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Bismarck, meh isn't an acronym it's an utterance.... it means so-so, not bad, a gallic shrug if you were a Frenchman.
NICE TO SEE MRS STASH ADDING TO HER STASH!
Agricore
What does "meh" mean?
I've tried searching.....
Acronym Definition
MEH Miniszterelnöki Hivatal
MEH Marine Ecosystem Health
MEH Mount Elizabeth Hospital
MEH Modern European History (Advanced Placement Test)
MEH Marine Electronic Highway
MEH Multi Engine Helicopter (aviation course)
MEH Moorfields Eye Hospital
MEH Midwest Express Holdings Inc.
MEH Make Everything Happen
MEH Master of Environmental Horticulture (various locations)
MEH Muji Europe Holdings (Japan)
MEH Materials Engineering Hamburg GmbH
MEH Mobile-Executed Handoff
IC gives a "meh" assessment of DEC but concedes it sees a stronger H2 2022:
"This isn’t the barnstorming result seen from the majors and some North Sea producers. But Diversified can still hang with that crowd through its 10 per cent-plus dividend yield. Buy."
https://www.investorschronicle.co.uk/news/2022/08/09/steady-not-spectacular-half-for-diversified/
I just couldn’t get over them being biggest gas producer in USA. You can say my research should have told me this but didn’t realise. If you take a macro view which is more how I invest with then sound, profitable companies DEC is a very reasonable choice in these choppy times. I think US listing will enhance this
Pedro, fair value was previously 181p (May 2022). Cenkos are reviewing this following the 2 recent acquisitions.
My estimation is that the previous forecast EBITDA of $443m will be uplifted by a run rate of additional $82m EBITDA (and given that we are mid year it will pro rata). There are no forecasts on the 2nd acquisition for 3rd party well capping earnings (to minimise methane emissions). The Inflation Reduction Act will make this a highly profitable activity since methane emissions will attract severe penalties.
Working on the basis that earnings have increased 18% then it's not unreasonable to put fair value at £2.14. More if you consider the well capping services could add a further $10-$20m EBITDA (£2.25 fair value?)
As Unvrkw said the 12% dividend (NB 10.5% after US witholding tax) helps too.
Thanks, with my investment I’m on about 12% divi also which helps.
What would be fair value?......175p-200p?
‘ DEC has done it again, producing excellent results at a time of high and rising natural gas prices and ideal conditions for its model which prioritises shareholder returns through a ‘disciplined approach to accretive acquisitions’ and of course an increasingly market leading position in ESG.
So, the numbers show revenue of $933.5m on higher gas prices and production up some 29% at 136/- boed (105.7), EBITDA of $224m is up 48% (151) and a cash margin of 48% which meant that the board approved a 2Q dividend up 6% at 4.25c.The free cash flow was 22% and the company grew fast its position in the ABS market completing a huge $970m at a blended rate of 5.3%.
The balance sheet liquidity of 469m shows that production is good and perhaps more importantly PDP reserves are up by 36% and give an increase of 116% to the PV10 value of $4.28bn pro forma for 2021 which the company point out will create ‘substantial opportunity for future cash flow’.
The most obvious thing that can be drawn from all these metrics is that, as the company points out that the company share price is not accurately representing what is a growing disconnect to very strong long term natural gas prices particularly in the areas in which it works such as the Central region in which it has placed significant investment in recent acquisition activity.
DEC shares are up a very respectable 20% in the last month, these impressive results that show that the model is a highly rewarding one and yet another increased dividend testifies to this. On this basis the shares are as the company says, not fully representative of the value being delivered, or in their words, ‘the disconnect between DEC’s share price and long-term natural gas prices creates an opportunity’ with which I concur, there is a great deal of value still in DEC shares. ’
https://www.malcysblog.com/2022/08/oil-price-dec-san-leon-touchstone-ujo-egdon-and-finally/
Trek