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Totally agree - also the divi is only circa 2.7p and the share price is down double that
The PE is circa 1.8x
This is a massive over-reaction but beyond frustrating
New 52 week low is a p*as take. Blame the artificial hype over Corona virus.
Low PE - Can the decrease in production help with the gas price?
The share price performance today may be due to today being the ex div date.
The EIA Drilling Productivity Report estimates shows a gas production decline in the latest report.
It also shows the fight between legacy production decline and gas from new wells
https://www.eia.gov/petroleum/drilling/pdf/dpr-full.pdf
Total US gas production dropped slightly between Nov and Dec (actual data not estimates)
https://www.eia.gov/petroleum/production/#ng-tab
Thanks, that helps
Hi Alessandro
Appalachian prices can be found here: https://www.naturalgasintel.com/data/data_products/daily
DGOC hedges using various natural gas derivatives. Natural gas prices can just be googled anywhere, however this is an example: https://www.dailyfx.com/natural-gas
Going Ex Div Tomorrow 5th March
2.7p Div
Where can I find charts for oil and gas price? Are prices the same across various locations?
You should know the risks if you are investing in a stock in the resources sector. Gas prices are at multi year lows, where do you expect the share price to be? I wouldn't say this company is a joke. In fact they have protected our capital better than other competitor in the sector. If you look at where some DGOC competitors currently are it will make you realise how well DGOC is doing to still be paying any dividend at all.
Take Antero for instance...
https://www.marketscreener.com/ANTERO-RESOURCES-CORPORAT-14491401/charts/
This share is a total joke- can’t believe it’s going down when ex div with a crazy dividend yield is in a few days
There will be winners and losers from the current situation. I believe that DGOC will be a winner. Be interesting to see what their next move will be. Invest in infrastructure, resume share buyback, reduce debt or retain capital?
A scary time to be in oil & gas but its not going to go away in a hurry so its still worth the investment, especially at the current crazy prices.
You say the industry is collapsing, so why to invest in oil and gas altogether if you cant see a bright future for a stock for at least the 20 years to come?
DGOC is in outstanding condition compared to some of the other US oil and gas producers:
- Chesapeake Energy, with sales of $4bn but debt of $10bn its MCap is less than DGOC
- Antero, a pure play Appalachian producer, one the largest US gas producers, with a MCap of $439m, $4bn in revenue, debt is rated junk, no shareholder returns, but huge capex plans leading to negative free cash flow which needs to be funded with asset sales at the bottom of the cycle. Check out the presentation below.
DGOC holders will get a big dividend this year, and a smaller dividend in 2021 (but still very healthy). DGOC has an investment grade credit rating, low capex and strong FCF and will be one of the last standing of the industry collapses as current pricing suggests it will. Should through up some interesting acquisition opportunities.
https://d1io3yog0oux5.cloudfront.net/_768e77c84c801e122fd320b50dd91307/anteroresources/db/641/5704/pdf/AR+Website+Presentation_01.24.20_vF2.pdf
I would be happy to see 140-150p.
A move to the main market would help
Lets get this share back to where it should be :)
Nice positive write up in today’s Momentum investor-in summary, they say this is a no brainer share
A boost in the gas price and an announcement on longer term of great hedges
Let's wait for mid March to see
Looking pretty bleak around here, sentiment at rock bottom!
Not sure what can get this out of the doldrums in the short term
They bought and cancelled £50m worth of shares over the last few months. That's quite an investment for a small company.
Gas price goes up, share price goes down!
DGOC appears to be flush with cash given it has brought back 13million shares in 2020 costing approx £12m
In an earlier video Rusty said DGOC prefers to buyback shares than pay off debit as the debit costs approx 5% PA vs dividends of >10%
Massive amount today 5,622,905 shares purchased.
I have just bought back in to DGOC a solid well managed company. However on the lse website my transaction came up as a sell, this is wrong, I placed this trade and it was most definitely a BUY
What lse published:
14-Feb-20 08:21:08 84.70 11,800 Sell* 84.60 85.00 9,995 O
What lse should have published:
14-Feb-20 08:21:08 84.70 11,800 BUY* 84.60 85.00 9,995 O
Summary:
ignore the buy/sell numbers on lse they are just guesses, this inaccurate buy/sell info has happened to me before on lse
I used Stockopedia too in the past, it gives good hints but its useless analysing individual stocks I agree with you Ste. Most platform aren't good from that prospective.