DEC encouragement21 Dec 2023 16:26
The following encourages me to hold onto my battered DEC holding:
Diversified Energy has had its target price and buy recommendation reiterated by house broker Peel Hunt following the open letter yesterday published by members of the US House of Representatives Committee on Energy and Commerce.
“Having reviewed the open letter, we see this as largely a rehash of a Bloomberg Green article published in October 2021,” said Peel Hunt.
“We understand that Diversified intends to respond, despite the company being under no legal obligation to respond and, in our view, a significant proportion of the questions appearing to be addressed within Diversified’s Sustainability Reports.
“We note that since the October 2021 article, Diversified has built a 15-crew well retirement company (the wholly owned subsidiary NextLVL) with the capacity to plug c.450 wells/year (vs the c.80 wells/year state requirements).
Peel Hunt adds that “DEC has in place ambitious group methane intensity reduction targets (-50% by 2030) underpinned by comprehensive GHG emissions detection and mitigation programs.”
Buy with a 3,500p target price remains Peel Hunt’s stance.