Member Info for Jim800

SD - the fall in share price does not reflect the accuracy or completeness of the answer but a wider issue of more sellers than buyers today for a whole raft of reasons.

Indeed, many of the sells were prior to 1200 when the RNS was issued.

The effectiveness of the DEC letter won’t be fully understood until if / when the Committee tell us whether they’re satisfied or not.

Looking at the size, timing and "neatness" of the larger buy transactions (very close to 15k, 20k, 25k etc) looks like another day of BBs.

Coolbeans - not necessarily confusing just impossible to fully explain a deal of this complexity in a simple 3 para RNS.

There are 2 parts to the RCF; the upper limit (max overdraft in effect) and amount actually in use. The 305 figure is the max available now the assets / production used as a guarantee have reduced - this is not necessarily the amount DEC have drawn down - though I guess it would be close.

Oak Bloke has done a fuller explanation but based on June 23 reported financials so a little out of date but gives a good idea of the various components of the deal and their value.

Timing is a little unfortunate as the impact of this deal on accounts / debt might be as of 2 Jan and thus miss being included in the Dec 2023 EOY Financial reporting which I was hoping would show potential investors stable finances, the positive impact of hedging / derivatives and debt reduction ahead of plan .

Bigger question is why have they disposed of producing assets?

- think long term prices are downwards?

- reduce AOR costs?

- think reducing debt may help SP?

- realisation that operating other ventures' wells might be as profitable as selling gas?

- consolidate business and free up more cash for BBs?

RNS bland quote that it is to "unlock additional value..at an attractive multiple whilst enhancing liquidity and reducing leverage" covers a number of possibilities.

Notrex you seriously are a muppet!

I said they couldn’t afford them at the time without borrowing - cos they couldn’t.

Now 2 months later they can.

Which bit of cashflow do you struggle with?

I thought GG was wrong about everything - but he’s right about your mental ability.

Some more words added to increase the chance of Notrex understanding simple debt / cashflow.

Simple question for a simple poster. (Notrex)

Are share BBs better today at this price done with cash in hand or months ago (when you were proposing it) when SP was 20% higher and they’d have had to borrow the money?

Jim has gone very quiet because it’s not worth replying to you.

I told you months ago I didn’t think DEC should borrow for BBs and at the time their cashflow wouldn’t allow it. Now they have improved cashflow and SP has dropped so they can up the BBs without impacting debt repayment and incurring additional interest.

Simple question for a simple poster.

Are share BBs today at this price with cash in hand or months ago when you were proposing it when SP was 20% higher and they’d have had to borrow the money.

If you can’t understand that just stick to playing with GreyGeorge.

If you’re following GG’s argument (and I know that’s a difficult thing to do) then on the basis DEC don’t actually produce any LNG but just buy at spot price to match their derivatives then capping costs and methane emissions can’t be an issue!

RNS reiterates what we all knew about access to more equity investors in the US. However, the RNS also infers that UK analysts still fail to understand the DEC business model and US analysts might be a little better informed!

Do not always get it right indeed.

I’d say Wednesday was probably the worst day to short DEC for months. They’re already 7% plus down.

Read Terry's link at from yesterday evening - but then realise that DEC's hedging strategy is much less risky and non reliance on Exploration and Drilling make it much less of a gamble whilst still delivering an outstanding yield.

Seriously, there's no point comparing companies with markedly different strategies.

Very interesting - especially the quote about Tellurian “it’s unhedged strategy is a major risk going forward.”

Is there any evidence that support and resistance levels survive a 20:1 consolidation or do we need to start again with the new metrics? Bit of a follow on from my point about SP looking like an all time high post consolidation.

I thought 5% was a bit optimistic just on two rate holds - glad I was wrong on that one!

Is there an unintended consequence of the consolidation which means that to the new observer DEC appears to be at an all time high and less attractive than it might be at less than half the all time high?

What was so bad today?

Just the transfer RNS?

Anyone know?

Every village needs one……

If TB doesn’t understand the difference between your and you’re then I doubt his / her investment advice is worth much.

"SP is not suggesting any optimism for a US Listing Today"

As many DEC investors (including several on here recently) didn’t know a consolidation was being voted on and executed, were surprised when SP jumped to 1300 area, surprised again when their numbers of shares held dropped and don’t understand the advantages / costs / mechanics of a US listing, I’ve never expected any uk optimism.

When the shares list in the US and Rusty has done the rounds (again) explaining the business strategy, then we might see a movement in price due to US listing.

Until then it’s sit tight, wait for debt to drop, more directly comparable financials to be available (without the confusions of Tanos acquisition, derivatives etc) and for others to come to the same conclusions as the long term holders have.

2 x £3million trades a minute apart around 1230. Priced at 1280 so not sure if they were buys or sells (or even if the first was a mistake almost immediately corrected). Didn’t seem to impact the price long term.

Any thoughts??

Surely it’s more complex than that because if you held an amount of shares not divisible by 20 on the xd date you get that number multiplied by the dividend. Not just the post consolidation number of shares times the dividend times 20.

Well that was a pleasant surprise; a day of sensible comments / opinions backed up by some rationale. Obviously a slight dip at 1314 when the goose started clucking his normal rubbish but otherwise back to a forum of useful thoughts. Thanks all.