Operating data queries9 Feb 2020 13:27
Hi guys - am new to this particular thread but have been in DGOC for a while and do my own analyses (Im a professional investment guy) which has raised some questions I have which maybe someone here has an answer to:
1) My base assumption for their gas price is Henry Hub - I noticed however significant discounts in their realised unhedged price in Q3 2019 vs HH spot price (DGOC's 1.91 reported vs HH Q3 average of 2.34- around 19% discount). There were much lower discounts in Q1 and Q2 19 (2%) though Q3 and Q4 '18 also showed mid teens discounts. Anyone have any idea what is happening here? My working assumption is that they are selling into locations with pricing discounted vs HH hence their pipeline acquisition strategy to redirect to higher priced locals, but they haven't been particularly transparent on this despite talking about it in general terms. Anyone here have better info?
2) Has anyone seen any actual capex figures for their SWM program? I very much like their apparent ability to sustain the volumes of legacy assets but the question is at what cost/ return. The $19mio H1 capex cannot be all SWM or they would be heavily negative NPV territory. I note the H1 19 report states they are getting SWM payback in days or months, which is reassuring but am curious to therefore know (a) actual SWM costs and (b) what the rest of the capex is going on - anyone have data?
3) anyone figured out what is going on with their NGL prices - they are way different to any market pricing I can find, hedged or unhedged
Thanks in advance to anyone who has looked into this