Member Info for Andy144

Correct. You have the money from the share sale (+5%). It's important to remember that the share will fall by the divi amount on ex divi day - c7.5%

DEC will buy your shares for 105% of the SP average (of the 5 days mentioned in the RNS) that's all. You don't get the dividend. They buy the shares from the dividend payment they would have made you.

No I think they are asking to buy your shares with the money used to pay dividends

So either take divi in the usual way or sell some of your shares without taking divi for 105% of share price as per offer. They are basically using divi payments to buy shares as many have suggested here. The price will probably fall by c7.5% anyway so you can always just buy them back again.

It's quite inventive but may not be that effective

DEC US down on opening by 30 - 40 points. Drifts up during US trading. About 8pm UK time there is a smallish selloff.

Rinse, repeat

A nice presentation. Does anyone know the reason for it or are DEC just being proactive?

Same here. Downloaded and used on Ipad. Thanks for that

At the moment between NYSE price and UK price. Someone is making money

@MrG

"Looks like Black Rock have bought a large chunk of US shares."

Source please? Thanks

So far in the US this evening.

Your argument is from a basis of the dividend being increased. DEC's dividend is not being increased. It does not have to find any more money to pay the Divi from when the SP was £1. So your argument is incorrect. All else being equal, DEC can sustain it. It is not paying out any more money than it did a year ago.

Whether is will remain so in the medium term will depend on market sentiment, not DEC's ability to pay it.

Your argument as to why then don't all other companies pay huge divi's is correct; they cannot because they don't have the FCF.

IF BP was suddenly hated and dropped from all pension funds this would hammer their SP but not their ability to pay the Divi.

"DEC does not have that with a 30%+ Yield - its is unsustainable. "

Why? Divi payments have absolutely no dependance in share price. They are paid from profits after other commitments are paid. This is rather basic stuff and is actually the cornerstone of DEC's business model. It is why they hedge their production.

Nice to see him positive but nothing new in this piece. The deal he talked about was the one done a while ago and we know they are doing BB's

Low was about 820 on the 23rd Jan

"My biggest concern before was that none of these wells actually existed hence sp down and it was all fake wells but with all the recent fuss about well capping been a big help to confirm as well as impact on sp."

I am amazed at that statement. So you invested but were not sure if the wells existed. So all the deals, dividends, banking arrangements, etc. etc. over the last 7 years of public company life was, in your eyes, potentially all just fake news? The only thing that has cleared this up has been the talk of DEC's AROs?

That is possibly one of the most rediculous posts I have ever seen.

The SP will drop by the dividend value on ex div day. So it might not bother them that much

Or they could just cut the dividend and save the hassle. The market has already discounted this possibility. Pay off debt. That is, and always will be seen as the priority. The high interst rate cycle has probably not finished yet. (not that it historically high). Things could get very ugly over the next 2 years, and actively paying down debt will be looked upon favorably.

Https://www.youtube.com/watch?v=tEVYsmpcbvk

So that the really dense among us understand, you should have said this ;)

"using today's HH NGAS future prices, the average price for NGAS for the year 2025 is $3.6 per MBTU etc. etc. This is important as it is considerably over the current spot price, which should help DEC to meet it's future financial obligations over the short to medium term as per it's business model"

CB. Agreed that DEC are only obliged to plug a certain number. At some stage this obligation will increase considerably. Does anyone know if their current state obligations are reviewed periodically?