Member Info for Jim800

To all those brave / clever enough to buy in last week or this morning. Not me - I’m still sat on original stakes in ISA and SIPP.

This morning it looked like individual sells were actually bigger than the individual buys but that seems to have flipped late afternoon .

Repeat tomorrow please! Just a confirmation that dividend is maintained would be a start, news on increased production and KRG paying down debt would be a bonus. Accretive acquisition or BBs even better.

Guess the only slight disadvantage in the timing is that they’ll get loads of questions on pipeline opening that they won’t yet be able to answer.

Presentation will be all on internal sales and debt repayment - unless they have acquisition or other location updates. Fingers crossed.

Gavster,

Although last presentation was in Sep, it was based on figures up to July. So mid Nov will give an extra 3 months worth of data and perhaps more importantly a chance to explain debt strategy, derivative accounting, decline rates, need for (or lack of need for) acquisitions, cost of capping etc. All issues which seem to confuse many potential investors.

In terms of decline rates, there have been lots of comment on that ranging from “it’ll last way beyond debt repayment” to “it’ll run out before debt repayment.”

If you believe the graphs in Sep presentation we’ll still have gas after all debt has been repaid.

Bismarck - I’m happy with BBs with “spare” cash though don’t think they should borrow to find them (lots of debate on this in previous posts) but not sure they will attract new investors which better debt levels might.

We’ll soon find out….

Trotsky - guess if there is spare cash forecast then it’s a toss up for the BoD whether a slightly increased dividend or a substantial reduction in debt is best for SP.

At almost 20% already I’d be happy with a couple more quarters of just paying down debt to make profitability / viability look better.

Going through this afternoon.

4 x 50,0000 buys in 2 minutes at 1409/1410 then another 26,000 a few minutes later.

Has someone read the research note and decided to go big (or small if it’s a fund)? Or have DEC raided the petty cash for some more buybacks?

For period to 30 Sep and accompanying explanatory presentation out 15 Nov.

(Source - today’s RNS)

Terry that’s your problem with buying and selling dates - not the BoDs.

Whilst we’re on your reality check, your analogy of a burnt down house is ludicrous. That incurs a massive cost to rebuild. The scenario would be better as a drop in house value - not an issue until you want to sell.

Did no-one tell you share prices can go up and down?

If by doing bugger all you mean running the company, making a profit, paying down debt and a great dividend but not borrowing money they can’t afford to increase a BB whose effectiveness is questionable then yep you’re right - Doing bugger all.

I ask again - why are you invested?

Notrex, which bit of the BoD are there to run the company not manipulate the share price don’t you get?

I’m beginning to understand what it must be like having a conversation with Joey Essex.

Terry, much as the fall was nothing to do with the BoD. QED.

Notrex, have you cheered up yet or are you still doing a Chicken Little impression saying the sky is falling down?

Should we sack the BoD today or just on days the SP falls?

Notrex,

If we're going to get shafted and can't do anything about it then I'd rather be in a coma than spending my whole life worrying about it as you seem to be doing.

I don't consider the SP to be a crisis until I wan to sell and can't or need to sell and lose money - my SIPP and ISA are both set up for income not trading so SPs fluctuating with markets or sectors don't bother me until a specific SP is way out of kilter and I don't understand why. At present I understand that returns with no risk are available at 7/8% so why would new investors take risk on shares? I wouldn't if investing now. With DEC specifically I understand that ESG has put O&G been out of favour for a while, cash is flowing out of investment funds forcing sales and that understanding the DEC business model is tricky due to big once off acquisitions, structure of debt, short term cashflow fluctuations and the way hedging costs are shown in the balance sheet. I'm happy with the company's performance and note that most large holders and analysts are too.

One previous poster likened their last year's figures and acquisitions as a greedy trip to the buffet table and they now need to digest Tanos and get a few quarters' reports that are directly comparable so direction of finances can be seen.

I never said I was a savvy investor - I said I understood the strategy. Screwed cashflow or lack of profits / dividend may constitute a crisis but there's lots they can do about that if required. I don't see a SP crisis.

It's not blind faith in the BoD at all - it's a recognition that they are doing what they said they would do in terms of running the business. I'd agree they shouldn't have done the last raise / dilution at the speed they did it (but perhaps the opportunity required it).

Doubt Rusty is going to shaft shareholders when he has (I think) about 3% of the company. I don' think it is an unexplained fall as per reasons above,

If you don't like the BoD or the strategy and think DEC should just borrow more to buy its own shares (which they won't) why are you still here? Are you a masochist?

Notrex - how will I wake up shafted and you won’t? Surely our shares will be worth exactly the same amount but I’ll be in an investment I understand and you won’t.

If you really think you and Tel emailing the BoD is going to make a difference then crack on - but you’re deluding yourself.

Rusty owns a chunk of shares so his interest and mine are aligned.

Those of you who keep saying we need to buy more assets either don’t listen or can’t read! DEC have enough to keep going for a decade or so.

Bought my DGOC shares in mid 60s many years ago so I’ve had my capital back and happy to keep on taking the dividend.

Terry where is the magic BB money tree?

Doubt banks will be lending large sums for BBs with only 12% of capital repaid annually.

Shell / BP are doing BBs whilst paying tiny dividends. If that’s what you want from your investment then sell here and buy there.

I like the dividend and don’t want / need to sell shares so I’m happy to stay.

Choices choices. Make one you’re happy with 😀

Terry,

Not surprisingly I don't agree with much of what you claim. Your simple arithmetic is so simple it has forgotten the repayment of the capital you borrow to enlarge the BBs to the level you want.

Furthermore, I am yet to see any evidence that BBs have any more than a very short term impact on SP for any company (though agree it would save on future dividends in the long term). Shell hasn't risen from £9 to £26 ish on BBs but on oil price and macro fundamentals.

Where would you stop? Buy back all the DEC shares except for yours and mine? The BoD are there to run the company and make a profit, not spend all their efforts and money we don't have artificially trying to manipulate the SP. What you are really saying is "Increase the BBs so SP rises and I can sell out" - not Rusty's top priority!

They didn't seem to have much issue increasing the RCF in March as this is dependant on cashflow to repay the debt, not market sentiment.

Notrex - As I've said multiple times what they should be doing is extracting gas, hedging it at highest price possible, repaying debt and loans, continuing dividend and communicating their strategy / cashflow plans to Investors in a better way. What they shouldn't be doing is borrowing more money to increase BBs whose effectiveness is not proven.

It's an energy company not a hedge fund or investment fund.

So Terry wants the BoD to up BBs at the same time he is poised to reduce his holding!

Knee jerk reactions to people who don’t want to be shareholders probably not a great strategy.

Once again, whilst saving a 20% dividend year on year looks attractive it isn’t so attractive if you’re short of cash, would need to borrow more and in the first few years (paying back capital and interest) you’d actually spend more this reducing cashflow.

Third quarter figures should impress potential investors, not more borrowing for BBs.

To be held via investor meet 14th Nov.

Some news? Good news? More bad news?

Well he’s done lots of sums with info available.

His view concurs with my oft repeated:

Short term cashflow and debt repayments are the most pressing issue but likely to improve quickly.

The money isn’t available to support BBs in more significant quantities than currently being undertaken.

The strategy still works and there’s not always a direct correlation between a falling share price and a badly run company.

Over exposed here but confident in dividend so holding.

Any naysayers wish to refute his article?

Dof you’re correct.

In my defence I’d just got off turbo trainer so most of my body including fingers wasn’t working properly.