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New Corporate Presentation on DEC IR webpages.
A couple of things might inform holders / prospective buyers:
Priority remains debt repayment, sustainable (ie low) dividend, buybacks and acquisitions.
They're quite proud that even reduced dividend is top quartile so I don't see any special dividends on the horizon.
The following explains their BB strategy:
"Strategic Share Repurchases maintain financial flexibility for open market purchases, tenders, and block trades based on market conditions."
So looks like 3750 a day as routine with option to buy bigger packages when prices are low / cash is available.
They're aware of $6Bn of Occidental planned divestments coming soon - shopping spree coming with saved dividend money??
Dazzle - so you’re relying on Orcs to help the share price?
I’m relying on George the grey falling into a huge chasm with a Balrog and turning up next year as George the White with an army of Ents to help drag the share price up.
Apologies to those who missed Tolkien.
Skier - can you please clarify two of your points?
"The buy backs are accelerating." They started off at 3,750 shares per day and today were at (wait for it) 3,750 again. Now when I did my degree if something was at the same speed over a period of time it most definitely was not accelerating, there was no acceleration at all.
"The big players are buying a big stake." Think you mean one player has bought 5% - which other big players are you referring to?
By all means get excited and run about weeing on the floor - but if you're going to pretend to be factual then at least be factual - your constant exaggeration makes you look a fool.
The RNS was based on tripping the 5% - not all bought on a single day.
But I agree that much buying, even over a few weeks must have been a major support to SP - certainly better than the DEC BBs.
Perhaps knew what was going on with JAM and held off on the BBs accordingly.
From their website: "Jupiter is a specialist, high-conviction, active asset manager. Our purpose is clear – we create a better future for our clients and the planet with our active investment excellence."
So are Jupiter's active experts better than Voleon's AI Bots? Looks like Jupiter have convinced themselves there are no emissions / plugging concerns with DEC and that DEC are good for the planet. Just need to convince everyone else now.
I'm guessing GG doesn't work on Jupiter's investment team despite his insider knowledge of falsified reserves / production numbers / buying at spot to satisfy hedges.
Not sure his competence is worth discussing - he’s not going anywhere anytime soon so DEC’s future and his are wedded together.
More important question for me is what will it take to get SP over the £11 price? Next trading statement? Shift in gas prices? Reduction in interest rates? Increase in BBs? Decrease in debt levels? More acquisitions? Lower decline rates? Disappearance of emissions concerns?
PP - I’d argue that the BoD do have a significant impact on sentiment, which as you say, in turn impacts share price.
Repeatedly saying one thing then doing another does not improve sentiment:
- no more fund raises by dilution
- will keep the dividend at a fixed percentage of FCF
-will commence massive BBs
- will buy your shares at 105% if SP if you forgo the dividend.
All promised, none delivered. Hence the sentiment!
How long do you intend including the dividend? It’s gone - let it go. The share price is exactly what is it today.
If you want to talk about total returns over time then fine but the share price is what it is.
So if Genel pass the oil to KRG who then pass it yo SOMO who then sell it on behalf of Iraq and pass a little back to KRG it seems likely that not only will IOCs be producing oil with a huge delay in payments but not much of the cake left for the IOCs who actually provide the investment, the knowledge and the oil!
Time for IOCs to get a better deal or just halt production and call their bluff.
Notrex,
I think our views on BBs differed in a few respects.
- when they were first mooted I thought that the price was too high and DEC's cashflow wasn't sufficient to do meaningful BBs without borrowing (which would have made debt figures worse - potentially scaring investors and would have incurred 10% ish interest) .
- I haven't seen any compelling evidence that BBs support the Share Price for any company (it's very difficult to identify cause and effect in the wider market). At recent price levels, buying back shares to save dividend and as undervalued assets would make much more sense than an (illegal) attempt at share price manipulation.
- I'd rather money "returned to investors" was actually returned to me then I'll decide what to do with it!
Now they have spare cash (saved from dividend) so can buy without borrowing and price is low then crack on - but do it sensibly during price falls, not every day, at the same time, at the same level, irrespective of share price action.
Looks like it's only 3750 shares each buying day, in a single transaction each time. This appears to be irrespective of share price, shorts increasing or wider market conditions - hardly an intelligent approach requiring a highly paid broker acting on your behalf.