Member Info for Jim800

Asp - concur, there were many chats on here several years ago about the impact of institutional ESG policies on DEC share price.

It was widely considered to be a negative impact as you say.

The irony was also highlighted that gas is the perfect transition fuel for the next few decades and that the biggest capping issue was abandoned wells - which DEC were either capping for 3rd parties (state or landowners) or avoiding by buying them up and managing.

Almost as perverse as the uk refusing North Sea licenses then importing at huge cost and just shifting the environmental impact elsewhere - lunacy!

JC - my point was that eventually the share price will catch up with the value of the company.

I’ll concur that some DEC actions may both improve profitability longer term but simultaneously depress the share price in the shorter term. Fundamentals should win out in the end.

I’m happy taking the dividend til SP catches up with NAV - though accept it is frustrating that this point shifts to the right after each additional acquisition.

I’d also agree (as I have for a while) that a pause to recognise benefits and allow SP to “catch up” would be good for share price.

If you’re saying the KRG used the money owed to IOCs to replace money not received from Iraq - that’s pretty similar to “stole.”

Agree it might have been for great social reasons: teachers, nurses, doctors, police etc - but it still wasn’t their money to misappropriate.

They didn’t have any issues finding 36 million to fight Genel’s arbitration case.

But all from a meeting where KRG and APIKUR weren’t in attendance!

What oil does Iraq think it’s exporting from KRG? They haven’t got any.

APIKUR say No agreement reached yet.

Surely the key word from Myles was “No.”

As per earlier post, Iraq and SOMO can agree whatever they like but they haven’t got any oil in KRG to export.

Meetings without key decision makers aren’t meetings, they’re preparation for meetings.

Terry - the strategy I was referring to was the one to make DEC a profitable company (not the one to make your shares worth more every day). I still don’t see anything to show that acquisitions have made DEC (not Terry) less profitable.

Your car analogy is ludicrous! I never said shares should be worth what they cost years ago I said they diverge from value and converge again when investors are convinced about the company finances. We don’t know what DEC shares will be worth in 12 months time but I’m fairly sure the company will be more profitable.

Looks like investors both sides of the Atlantic see upside 😀

Terry - a quick response to your response to my comments.

How long to prove the strategy? As long as it takes to convince investors that the various acquisitions actually are proven to be accretive. If the additional expenditure (in any form) is exceeded by income from the assets then they’re good. This is obviously taking longer with the complex finances. On the other hand, although we’ve suggested finance could have been raised more cheaply, I haven’t seen anything that proves acquisitions have not proven profitable.

Blackrock holding (further confused by listing of additional shares) - don’t we’ll ever fully understand anything other than actual shareholdings.

Trading - I didn’t suggest your strategy would influence the wider market. Was just pointing out that if you have decided that trading is the best option then don’t be surprised if lots of others do too - making your longer term recovery less likely.

I don’t need to borrow against my shares so no loss til selling for me. I held (and increased) IAG throughout Covid - only coming good recently. I may gave felt uncomfortable looking at red holdings for several years but didn’t lose any money and eventually made a pile.

In your situation you may only be able to borrow less, you haven’t “lost” any money.

And forgot to add they might actually do some more BBs so that should cheer you up 😀

Well who'd have thought the IOCs would actually want paying for all the oil they paid to extract and that we have "lost" the money for?

They'll be wanting money for the stuff exported in the future next.

These Westerners are sooo unreasonable, how can us honest Iraqis ever understand them?

More biscuits whilst we try and get our heads round actually paying for the stuff we sell on their behalf.

He’s what the filter option is for - go on, think how much time you’ll save if you filter all the muppets on here.

Guess there’s a chance that BP and Iraq will continue to expand their new, shiny and friendly relationship and the easiest way out of current mess for Iraq (I don’t think KRG really get a say) is for BP to make fair offers for the IOCs.

All comms are then BP to SOMO, all Iraq oil is controlled by Iraq, pesky Kurds are shafted again and no need to manage multiple smaller companies.

I’d take a buy out of Genel’s KRG contracts at a decent price.

C’mon you two you’re going to waste a sunny day being too miserable. Let’s try to look for some good bits!

Shorts much reduced

SP up 10% yesterday so someone’s buying - only normal to see a drop back after a big rise like that.

Blackrock only reduced their actual share holding by 0.3% the rest was CFDs/ derivatives etc.

The strategy might be correct, it’ll just take time to prove it.

Even more acquisitions might be good in the long term if the extra profit is more than the additional interest plus capital over the term.

If you two are so set that it’s just for trading then don’t be surprised if all rises are sold into as that’s your declared strategy.

Of course there are risks - but that’s true for all shares.

Time will tell, it’s not a loss till you sell it 😀

Was that the same annual presentation again?

We're all doing a great job and everything will be brilliant next year when somebody else sorts out exports.

I asked 3 questions, only one answered! The partial carry in the RNS for Oman 54 is "the cost of doing business." So, a partnership where you have to pay a proportion of your partners costs. Why not just give them a bung up front and then both pay your share?

I also asked who was responsible for the costly (50 millionish) decision to go to arbitration over M/BB -question ignored.

I asked how much say Genel got in APIKUR decisions - question ignored.

Unfortunately a meeting without the important parties. Until Iraq realises that IOCs know that this is their only chance to get monies owed for previous sales and a decent agreement going forward.

SOMO and the Iraq govt can eat as many biscuits as they like but without Turkey (for the pipeline) and IOCs for the oil, they won’t be exporting KRG oil.

Terry can’t fault your logic on BBs whilst they are more profitable than debt repayment - despite the fact I didn’t agree with them when SP was higher.

However, listening to Rusty in yesterday’s presentation he’s not finished with acquisitions. He mentioned an aggressive acquisition strategy and that there are good deals out there! I’d prefer a pause for a year to let SP recover but don’t think that’s going to happen. Just have to hope they can fund out of FCF or cheap debt - not the expensive stuff or more equity raises.

Although Dave has spent the last 4 weeks guessing different numbers on a daily basis - all with no justification whatsoever!

Guess one of his 724 posts might be close 😀

Interesting debate to be had about whether Rusty’s primary job is supporting the share price or running a profitable company.

The two should be aligned but often diverge for numerous reasons.

I’d say Rusty is focussed on profitability at the expense of SP temporarily, hoping that time will prove him and his numbers right and close the gap between share price and NAV.

You can see the emotional market response over at ENOG today. SP dropped previously on notification of an asset disposal and has now dropped again when it looks like disposal won’t conclude! Both of those can’t be correct.

As always there are a spectrum of views, both of which can be correct at different times.

I think we’re at JC’s “disappointed” end of the spectrum as evidenced by the current SP.

However, the acquisitions have been planned and completed at an advantageous time in the commodity price cycle and it was probably felt that they were a now or never deal so worth overstretching for.

Could they have been completed more efficiently, probably but they’re done.

DEC can now start to demonstrate the savings and benefits it mooted during the acquisitions and hopefully prove its strategy was correct over the coming months.

Only thing that will derail it is more expensive acquisitions!

At least buyers at this price are getting a decent dividend whilst they wait.

Still optimistic here!

Conference call at 1230 Monday - presumably someone will ask about debt and plans for further acquisitions.

Do you not think the two things might be linked?

Significantly increased BB and more buying interest. Mmmmm……

Hopefully much more than 25% increase in assets, much more than 25% increase in production, much more than 25% increase in cashflow, much more than 25% increase in profit and a new company that’s more than 25% bigger!

But the debt has gone up (again). 😀