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Add I should add that the gas price is going up
Should see a bit of movement in the price in September. Divi on the 3rd & main market classification around the 21st.
As a company with no prospect of organic growth and exposure to fossil fuels its really not going to blow the roof off in the current environment. However with its reasonable valuation, high free cash flow, sector leading dividend yield and low debt its a well managed company which I am happy to park my funds in and continually reinvest the dividends. By my calcs I expect a 100% return in 7 years. True value!
DGOC seems to be very much under the radar of investors at the moment.
Some nice buys here yesterday, I'm in for more.
Cenkos forecasting (at current exchange rates) an 11p dividend for 2021 (15 US cents).
Broker note in the link below (PDF file)
https://ufile.io/5nzywj5p
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Director buy , 22K's worth of stock.
Cannot blame her, I too have added 20K of DGOC in the past weeks.
Powering ahead with spot NG prices at $2.54 compared to the 2020 H2 floor of $2.65. 20% of production is unhedged so we might even see some price upside for this year.
The futures curve for 2021 is ahead of the DGOC hedged floor of 70% of production hedged with a floor of $2.62. 2022 is even better with available prices in excess of $3 compared to 45% of production hedged at $2.50.
I imagine management will be increasing the proportion of future hedged production at these prices giving further comfort over the dividend.
Well nice to see a 6 month high today. Possible 1 year high (116) this week?
Hold and then move to 130/140 by the end of the year. For 2021 I expect 180+. Very bullish.
Will the SP hold around 110 or will we see the usual large sells to bring it back down?
I'll try and post what you are trying to @Yellowstone - sometimes the links are removed because you are a new member on LSE, sometimes it is because you are publishing a rival service to LSE. If these two links don't work, then anyone can simply google the last part of Yellowstones links and it will get them there.
https://www.stockopedia.com/content/diversified-gas-and-oil-plc-consistent-delivery-and-exemplary-execution-652528/
https://www.youtube.com/watch?v=od4xArKptro
Here's the link a recording of the webinar
https://youtu.be/od4xArKptro
#DGOC - Mgmt team presented at the Yellowstone Advisory webinar on 12 August. A recording can be viewed here
https://youtu.be/od4xArKptro
Write up here
https://www.yellowstoneadvisory.com/post/diversified-oil-and-gas-plc-consistent-delivery-and-exemplary-execution-from-diversified-gas-and-oil
https://total-market-solutions.com/2020/08/14/malcy-talks-oil-gas-xxii/
DGO now has a track record of handing cash to shareholders. Its major hedging worked this year and higher prices, which it is forecasting, should mean higher cash flows ahead. The fossil fuels exposure combined with debt and the acquisition-reliant model are risks. But if it can get through these past few months with ease, it should prove up to most challenges. Buy.
Link to the 10th August Interim's presentation.
https://d1io3yog0oux5.cloudfront.net/_884d212a3380824de1feafaeefee41b7/dgoc/db/557/4296/pdf/DGO_2020_Interim_Results_Presentation.pdf
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It will be interesting to see if the gas price can remain above 2.
All good. The dividend increase was a nice bonus.
Morning all. Just a reminder about this webinar with CEO Rusty Hutson Jr. and CFO Eric Williams on Wednesday Aug 12, at 4PM. To register please click here:
https://us02web.zoom.us/webinar/register/3015961866342/WN_qT9gtei1SVOy4CQVQafkTw
Love it. Can't believe they increased the divi though. It's like they don't know what to do with all the cash they are making :)
Solid...as usual. Nice dividend increase, I bought a few more, should see this at 1.25-1.30 later this year. Gas prices on a tear and the forward curve now looking very strong, perhaps even some panic buying creeping in.
https://d1io3yog0oux5.cloudfront.net/_b1616ac6ad44027b77399465c996a407/dgoc/db/557/4296/pdf/DGO_2020_Interim_Results_Presentation.pdf
DGOG is killing it!
Declared 2Q20 interim dividend of $0.0375 per share (1Q20: $0.035), an increase of 7% reflecting the Board's confidence in the Company's outlook.
Rusty Hutson, Jr., CEO of Diversified, commented:
"I'm pleased to report another successful period of stable production that recently surpassed the 100 MBoepd milestone, healthy cash generation funding an increasing dividend and prudent growth as we navigate a global pandemic and commodity price volatility. In traditional Diversified fashion, we have remained busy over the past several months, and as an essential services provider, our operations continue without interruption or negative impact from COVID while our teams work diligently to integrate the recent acquisition of assets from EQT and Carbon.
"Our field operations have continued to deliver with production from our Legacy assets essentially flat for the past eight consecutive quarters as they continue to execute our Smarter Well Management programme while they also work diligently to integrate the recently acquired assets from EQT and Carbon. Our finance team successfully funded the recent acquisitions and further strengthened the balance sheet with the closings of two secured, amortising financing transactions and an equity raise which combined totaled nearly $450 million in aggregate. Notably, our teams did all of this while supporting our successful transition from AIM to the Premium Segment of the London Stock Exchange.
En hier gaat het verder:
“Our commitment to an opportunistic yet fiscally disciplined business strategy continues to deliver tangible results for our shareholders with nearly $150 million of adjusted EBITDA during the first half of the year, supported by a robust hedge portfolio and low operating costs that underpin a 55% cash operating margin including operating and all administrative cash costs. While others have been forced to cut or suspend their dividends over the past several months, the strength and durability of our cash flows allow us to not just sustain but to increase our second quarter dividend by 7% to 3.75 cents per share, wholly reflective of the confidence the Board has in the near-medium-term outlook for the business.
"As we enter the second half of 2020 with approximately $220 million of total liquidity, a healthy balance sheet and with a focused and efficient operation, we are well-positioned to capitalise on the opportunities these challenging times create, all with our unrelenting focus on creating long-term value for shareholders."
One word: wow!
Gas still going up.
The central banks are causing the mother of all asset bubbles here. Literally everything is surging, base metals, oil, precious metals, crytpos, emerging market currencies, even unloved gas up again today to around a 7 month high.
Prices are up 50% from the June low of around $1.50!!
BBOX is another share I own which I see as having similar qualities to DGOC. A huge SP rise from the depth of covid has meant its yield has compressed from over 10% to around 4% given its relative immunity from covid.
The same thing could easily happen to DGOC. A reliable dividend stream is becoming very highly valued and the current surge in prices will give DGOC a chance to lock in prices for future production which will support the dividend.