Member Info for JC01

MrG ,

Thank you for the sentiment . I’m not gone yet 😂

Sadly the likes of myself and Terry believed in the strategy which at the time seemed worth investing in. Buying up older wells at a knock down price , apply smart management and rewarding shareholders with a sizeable dividend. Then still have resources with life iin them once the debt paid off. Happy days. Nobody expected significant capital gain but high dividends was the appeal . I won’t bore you but the rest is history. Our mistake was accepting that the first loss would have been the cheapest which invariably is the way. I hope you make money here and that eventually it turns a corner for you or that you bought in cheap with a nice dividend . GL all 👍

terry,

agree 100%

i’ve sold and reinvested profitably. not pumping but you might also like to look at the opportunity in metals exploration which has also done well for me with significantly more upside to come.

i see absolutely no future potential in this business and no intention by management to improve shareholder value. all hutson is interested in is kowtowing to the institutional market as some kind of jr ewing ,getting his big fat salary , more free shares and ******* over private investors for his personal gain . he’s an utter ****

I know it as worked it out at the time of the fundraise and keep an eye on it to see if it worked for the sellers.

East Texas … $11.74

Fund raise and broker … $14.50

Maverick … $16.43

We’ve already seen a bulk buy back of a third of the East Texas acquisition shares at $13.95 notified in the 28/05 RNS.

Any of these large buy backs I’ve mentioned at circa $14.32 are clearly East Texas dumping . So they still have circa 1.4m shares to dump on the market. I know that for a fact as the original deal was 2,342,445 shares for €27m. So a nice profit for the seller and a more expensive purchase for DEC buying back these shares. How accretive is that deal now !!

And that’s just for starters . The fund raise was 9,350m shares and Maverick 21.2m shares .

All in the pursuit of Trusty Rusty growth strategy at our diluted expense !!!

Then you wonder why Terry and I are so negative towards Hutson

Any more dilution would be a further disaster.

None of the acquirers or fund raisers are out of pocket on the current SP ( actually in profit ) apart from Maverick who appear longer term holders.

Terry,

The large BB’s are to facilitate one of the entities either in the fundraise or acquisitions to exit. If you look at

the last 3 big volume days there is always one particularly large trade and only traded on the IEXG Trading Venue. No other trades on that exchange.

92,324 … 43744 ave price 14.32

81615 … 38467 #######. 14.35

115352 …43801 #######. 14.32

Terry,

Looks like you’ll have some more trading opportunities from this hopeless dog

If you want a football analogy Hutson and Levy at Spurs.

Too long in the job delivering 💩 results . One to shareholders and the other to fans.

Neither will step down as the gravy train is too rewarding in compensation and nobody holding them to account 🤯

Terry,

Sadly have to agree for all the reasons we have spoken about. All we can foresee for HH is volatility and lack of price stability moving out, although the hedging strategy is a good thing imo

We are in a vortex of misery with this business , poor sentiment and a huge overhang of shares to shift for years to come. We have to hope that the 2nd Qtr results show strong FCF and some rabbits being pulled out of the hat.

My strategy now is simple. Selling out and reinvesting elsewhere.

Seriously give yourself a break from trying to educate the idiot 😝🙈

Terry,

You’ve too much time on your hands dealing with that idiot.

Sadly this board has become meaningless as is the Co we are following and actively trying to get out of and reinvest elsewhere

Sold down over 50% of this dog and put it into HEX with a gain of over 60% in 3 months and still huge potential. Gradually getting my money back and will continue to sell down to get out of his 💩 business.

Not a single BB since 16th June. Hutson thinks the Carlyle relationship is going to support the SP. Nat Gas down and the exchange rate killing the dividend. There is no way back. You couldn’t pay me to trade this junk.

Asp,

Don’t bother with your views about the miserable share collapse . Nobody is interested in going over old 💩 and opinions . Nobody will read it . A collapse of over 50% since mid 2020 tells it all.

Frankly we’re bored listening to it and nobody’s view is going to change.

We’ve blead this conversation dry.

Go back to work . You’ll get greater satisfaction from that than trying to justify Hutson’s strategic incompetence and appalling communications.

ASP,

I suggest you read the RNS. It’s a strategic partnership for new Assets. Not securitising existing DEC acquired assets .

Terry,

The Assets won’t go up for sale.

They get securitised in a SPV with a coupon rate and Investors will get a risk rating by an agency. Maybe a B+ . Who knows. All I know is no more dilution , high debt and off balance sheet. No need to reply .

ARO’s won’t get mentioned in the prospectus.

In a typical ABS the originator does not typically invest money into the securitisation process itself in the sense of contributing new cash to the structure. Instead, the originator’s main role is to provide or originate the assets (such as loans or receivables) that are pooled and sold to a special purpose vehicle (SPV). The originator usually receives cash for the assets .

However, in some cases, the originator may retain a subordinated or residual interest (the “first-loss” piece) in the securitisation, which means they are exposed to the first losses if the assets underperform. This is not the same as investing cash upfront, but it is a form of economic exposure or risk retention.

Therefore the originator generally does not invest cash into the securitisation process; their investment is in the form of the underlying assets and, sometimes, retained risk.

I’m the biggest critic of Hutson but glad he is no longer raising debt at high rates of interest on the balance sheet and diluting the SP in the process. I’d rather he was on the hook for a bit of residual risk if applied. IMO this is a clear sign to improve shareholder value with additional FCF. Credit where credit is due.

Worya,

It’s very clear DEC will not be involved in the financing of the asset purchase . They will be involved in the sourcing , assessment , valuation of the new assets and due diligence . Carlyle provide all the financing upfront then will securitise . That’s the beauty of this partnership . This is now taken away from DEC so thankfully no more dilution which has been one of the killers for the SP. We also now have the financing expertise of Carlyle and their resources . They will be the financial gatekeepers which is another bonus keeping Hutson in line. A good thing to be taken away from Hutson. Let him focus on what DEC are good at. We may never know the exact details of the deals just that DEC get fee income.

Terry,

ARO’s will be part of the normal servicing . You know how these Securitisations go. They’ll be packaged up with a higher than average coupon because of the assets with a risk rating. There will be all the bs of how good the assets are and experience of the service provider. It will be the investors on the hook if the assets don’t perform . They always are.

DEC will get fee income increasing FCF , no high debt costs and all off balance sheet. They can then focus on increasing FCF of existing assets , organic growth , land sales etc etc , increase BB’s and reduce/ restructure the expensive debt. And no dilution.

Carlyle are no mugs and see a lot of opportunities in the marketplace to make money

Terry,

IMO this hook up with Carlyle is significantly better than what we’ve had so far.

Based on the structure of the deal Carlyle provides the initial capital for asset acquisition, acting as the primary buyer, while DEC operates and manages the assets from the outset. This arrangement is distinct from traditional partnership models where all partners may share acquisition rights or responsibilities.

In this case, Carlyle is not just a partner contributing capital for the partnership’s use—it is specifically providing the capital to acquire the assets directly, at least initially. DEC’s role is as the operator and manager, not the initial purchaser.

Carlyle will then Securitise the Assets. DEC at all times remains the obligor to the SPV and are the ultimate source of cash flow for ABS investors, and their payment performance is critical to the security’s success.

The US took the news positively at least .

Not as cynical as the UK 🤪

Reacting positively to the news Stifel, in a note, repeated a 'Buy' recommendation and a 2,018p per share view of net asset value (compared to DEC's market price of 1,484p).

"The supportive backdrop for US natural gas right now, we believe, validates management's acquisitive strategy over the years," Stifel said.

"This strategic partnership is significant as it will provide access to a large pool of non-dilutive funding that will give Diversified a distinct advantage versus other buyers and allow it to pursue a NEW range of acquisition opportunities.”

e broker added: "by leveraging Carlyle's expertise in asset-backed finance, Diversified will ensure that it has access to optimal asset-focused financing solutions to maximise capital flexibility and support long-term growth."

I know they are a House Broker etc etc but I will take non-dilutive funding . Maybe just maybe Hutson getting the message or Institutional Investors putting him straight what shareholder value means !!

Investing.com - KeyBanc reiterated its Overweight rating and $17.00 price target on Diversified Energy Co. (NYSE:DEC) following the company’s partnership announcement with Carlyle.

The partnership, announced Monday, provides Diversified Energy with up to $2 billion in asset-backed funding for future acquisitions of producing developed producing (PDP) assets. This agreement eliminates financing risk for the company, contingent on meeting certain deal parameters.

It would be interesting to know what those deal parameters are ?