Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Uk holders (with completed W8BEN) pay 15% witholding tax in an ISA and 0% in a SIPP, i have held these for year and half and no issues with dividends (at HL) I spoke to HL last week to see if moving to main market would make a difference but they seem to think that as earnings are US based and paid in $ then will stay as is
I've been building my holdings for over a year, currently 25k, have completed W8BEN to enable purchase and hold in my ISA, but still pay US TAX OF 30%. Am I missing a trick here, or is it the same for others??
Punt of the week in this Saturday’s Daily Mail. The type of income payer people will be looking for with a yield of 12%.
Thank you 13martin. Much appreciated. Have a great weekend. Buying here Tuesday morning
3.45 cents paid 20/12/19
3.5 cents paid 27/3/20
3.37 cents XD 28/5/20, pay date 26/6/20
3.5 cents XD 3/9/20, pay date 25/9/20
I’m looking to buy. Been watching for a while before when they were 50p many years ago. Seemed to have become a monster now. How much is the dividend ??? Cheers
Oh dear. When a company attracts such dodgy people it may just be time to get out. How will DGOC cover the backhanders in the accounts ?
Malcy and Doc talk DGOC
https://total-market-solutions.com/2020/05/22/malcy-talks-oil-gas-xx/
Looks like the big boys are increasing there allocation of shares. With one of the best dividends in 2020 and generating lots of cash, it has to be a very attractive share to own. OK so gas is unfashionable but fashion doesn't pay the bills!
I don't really understand how it can be difficult to determine what the cash flow of the business is.. Free cash flow = cash flow from operations less capex. The FCF yield is sound. Anything else around buybacks acquisitions etc is happening in financing cash flows.
No facts behind the comments. Pessimistic rubbish.
Article in the FT about DGOC move to main market. Theres nothing really interesting in the article, although there is a quote from Premier Miton saying how reliable they think the dividend is. What's interesting are the comments some readers have:
There is something funny about this company seemingly clearing out in a world where US gas prices only go lower. They have been a bit "cute" about decommissioning liabilities in the past, raised money to buy back shares - can see why as one of the few remaining dividend payers they have investor traction but something doesn't feel quite right if viewed over time.
The company's cash flow isn't great and it raises lots of money and pays a dividend. Its hard to get a good picture of operations as they are constantly making acquisitions (and raising money via debt/equity for it).
There is a big risk that this company is only paying dividends from debt/equity raises.
I doubt that many of these commenters have taken the time to read about the company but there it is anyway
https://app.ft.com/content/17acfd49-5c93-4951-9007-0fc4211d742b
Let's see what the main market brings DGOC
The long term forward price curve reflects the expectation for increased prices from lower oil production, which will eventually trickle through to lower gas production, combined with a recovery in industrial activity.
DGOCs true exposure is to these prices rather than the spot gas price which is fluctuating wildly. It hit $2,200 two weeks ago and then promptly crashed to nearly $1,700 in 7 sessions. Now back up to $1,950 in a couple of days. The long term curve has barely moved.
Looking forward, analysts expect oil and gas price will rise as governments slowly lift travel restrictions, with gas futures for the balance of 2020 and calendar 2021 trading much higher than the front-month.
May 18 (Reuters) – U.S. natural gas futures jumped over 10% on Monday on slowing output as energy firms shut wells and slash spending on new oil drilling after crude prices sank earlier this year due to coronavirus-led demand destruction. Those oil wells also produce a lot of gas.
Theres a presentation on the website setting out more details on the 2 acquisitions. As a someone who spends half their time either writing or reading these presentations I find these decks extremely busy deck with way too much detail. Some interesting points:
- 12% EBITDA acquisition after new share issues = 12% dividend per share increase. I take this to mean that this should AT LEAST protect the dividend for the next 3 years, covering off natural declines and assuming 2022 can be hedged at current forward prices
- 99% gas production. This means that oil will contribute under 5% of revenue going forward. 90% of gas for the combined company is hedged into the end of 2021
- The midstream strategy is quite compelling although would like to see some details around cost KPIs
- It would be helpful to see an acquisition balance sheet disclosing the AROs (and perhaps valuation of midstream). These would be around $150m for the 7,000 acquired wells at $25k a pop although with an average 30 year age its unlikely to be much in present value terms
https://d1io3yog0oux5.cloudfront.net/_a5888e639151f685f370c1b3e185b9c2/dgoc/db/557/4307/pdf/DGOC+Acquisitions+2020May+vF5_for+website.pdf
90% gas Ragnor 10% oil- says so in the BBC interview with Rusty that you posted-
Both a lot cleaner than fracking so if the Democrats get in, they will have their sights fixed onthe Permian frackers rather than companies that run conventional oil and gas wells.
This entire quandary would be sold if DGOC changed its name to DGC... Although thinking about it, the name doesn't make any sense. Where does the Diversified come from?
Diversified by product...nope - 99% gas/ NGL
Diversified by geography... nope - all located in the Appalachian basin of the US of A
Maybe its Rusty's vision of the future
Its useless to try engaging Oilman Jim on twitter regarding his comments, I have tried and either he doesn't answer or states that its all explained in his private blog which of course requires a subscription! He has got a few calls right over the years on companies to avoid. I don't agree with him on DGOC and have tried responding looking for facts that he bases his comment on. No response.
I see the Prospectus has just been published by way of a RNS.
Enjoy the read.
All the Best
Johnny
My understanding is that the Prospectus for the proposed transfer of our Listing from AIM to the Main Market was due to be published today.
Am i correct?
If so I cannot see a RNS for it.
Does anybody have any current imfomation on this?
Regards to All
Johnny
Looked this up and here's the Twitter link. This company has been attacked many times in the past, there was the Muddy Waters wannabe looking for a job, Tom Winnifrith and now this guy.
If this company isn't really making money then its some monumental fraud to continually deceive big institutional investors and the various advisers time after time in the prospectuses accompanying the various capital raisings (included debt secured directly against the value of wells). You would assume that all these events would have required some kind of due diligence.
Or do we believe this anonymous Twitter persona who claims he has significant industry experience and he knows something that everyone else doesn't?
https://twitter.com/Oilman_Jim/status/1257212127795871744
Calling Rusty a liar for stating that only 1% of our production is Oil. But it is.
Key Metrics
Net Daily Production(f) > 96 MBoepd
1P PDP Reserves(g) 580 MMboe
1P PDP PV10 (g) ~$2.1 Billion
Production Mix (Gas / NGL / Oil)(e) 90% / 9% / 1%