Member Info for Mando_

RS22
They have over 1,100 employees, mainly field based agents to check and maintain the sites. So when they cited the labour costs as Zero, they mean that these costs are already baked into their operational costs, so effectively zero additional cost to check the sites in the Bloomberg article.

Based on 0.5% assets costing $2000 to fix. I think it could be said that it could cost them $400,000 to potentially fix them all.
(0.5% x 200 = 100% of assets, $2,000 x 200 = $400,000 to possibly fix them all)

However DEC also said that Bloomberg looked at newly purchased / older wells mainly. Plus they also say that they account for repair costs in their published plans, so I very much suspect it will not impact their profit projections.

If the laws were to be changed to make them close off a lot more dead wells than currently legally required, this could potentially bust the company, but this is so highly speculative and would not be in the interest of local governments, as DEC actually seem to try to maintain the wells much more than other smaller companies, and they can due to their scale.

There are some major investors in this business. BlackRock increased positions in September. Oaktree Capital are supporting funding the business venture as an investment partner.

My biggest concern is that someone at Oaktree gets torn a new one for investing in DEC and management pulling the plug. This would probably kill their growth plans. But I don't think that's likely.

My gut feel is there will at least a 10% recovery in the next week or so.
I personally sold stop losses at 99p and bought back in this morning about 98p. I think the latest charts since 10:30 show some positive sentiment.
But I'm a just a novice investor, not a pro, so I could be wrong... DYOR
GLA

Open the page and before the paywall pops up, press ctrl-a and then ctrl-c to select all and copy all of the page, then paste into word. Worked for me.

@johndeen, let's be realistic..
I sold at 109p, bought back at 107p, sold at 101p, bought back more at 95p and 97p.
I started the day with a holding of only around £5,000 in DEC. Now I'm sitting on £11.7k at an average price of 0.9731 (excluding my losses on the way down).
I think you must either have a bottomless pit of cash if you don't ever consider selling out or reducing risk on the way down, and prepping to buy back at a lower price. Clearly this strategy doesn't work all the time, but if at the time you think there's a high risk of a drop of more than 1%, selling out and buying back at a lower price can be a good strategy.
Now we've got through the US open fairly unscathed, I'm now also more confident to keep buying DEC on the way up.
I advise you consider this strategy to make your share trading more profitable. HODL isn't always the best strategy my friend.
Good luck to you though

The article said that in Pennsylvania (I think it was from memory), the law is they have to plug up to 20/year. So likely not all will be done ever...

Oh god... I got out again. Lost another 5%
Looking at AWE from their daily trading on the 29th, they'd dropped about 18% by 1:20pm, then traded quite flat until 2:30pm, when the US market opened. It was from 2:30pm it really started to drop, ANOTHER 46%!!!
Sadly I can't watch this all day as I have an appointment to get to, so I'm out and probably wont be able to check the price again today. I'm willing to take the loss. Gutted though.
My gut feel is to hold it through, but I don't want to take that risk and I don't trust my broker with good stop-losses.

Cheers.
For Windows Users not subscribing to Bloomberg, open the link, immediately press CTRL-A and then CTRL-C to highlight everything and copy, then paste it into MS Word or something.
You can do this before the subscription pop-up shows, so you can read the article.
;-)

I'll be keeping an eye on Director deals. Robert Hutson will be a lot more upset than me right now I think, having just lost about £6m. With a low volume day yesterday, I really believe they didn't expect a bad article.

Directors Deals for Diversified En (DEC)
Announced Traded Action Notifier Price Currency Amount Holding
06-Aug-21 05-Aug-21 Buy Robert Hutson 102.80 GBX 250,000 21,172,899
25-May-21 24-May-21 Buy David J Turner, Jr. 113.51 GBX 124,500 371,500
24-May-21 21-May-21 Buy Martin Keith Thomas 111.60 GBX 15,000 2,165,000

Hi DS235. I'm saying the link is CO2 was at its peak in a thriving planet when the dinosaurs were at their maximum population size, if you believe the theory they were wiped out by an asteroid/metiorite.
If you look at the CO2 charts now with growth in line with human population sizes, we are now the dominant, thriving species, but CO2 levels are still only a 3rd of the level it was when the dinosaurs were at their peak. So how dangerous exactly is CO2? We assume CO2 causes global warming, but who says the world shouldn't be warmer, lush and tropical.. e.g. getting rid of the ice caps (they have been much smaller before), reduces the thermal opposites which cause hurricanes, not increases them, so when people say global warming causes hurricanes, this is simply not true. The deserts also used to be way more like tropical rainforests with more CO2...

Actually, just read key points in the RNS again

· Extrapolated emissions across Diversified's entire portfolio are consistent with levels specified in the Company's public reports
· Measured absolute emissions are significantly less than those from newer wells that produce at higher rates
· Several of the noted emission sources related to pneumatic valves that were operating as designed and are a current priority of the entire industry to re-design; Consistent with its net-zero target, Diversified is evaluating equipment modifications that would reduce and potentially eliminate these emissions

I get the impression they are really f*cked off with this article, and also that they have these issues under control as normal day to day operations and have an action plan in place to improve. The statement reads as though the company has things under control.
Fingers crossed this is just a dip on a bad day overall with the CPI report tomorrow

My maths were wrong earlier - apologies.
0.5% wells surveyed
Total repair $2,000
This means total survey and repair could cost around $400,000, not $40,000 as I posted earlier
I still sold out around 109p and bought back in at 107p and am watching like a hawk now. If they choose to fix all sites there would clearly be a major impact to net income, unless this is already forecasted into a normal maintenance cycle, which I expect it would be. We could do with clarification from DEC on this though

yep.
They should never have trusted Bloomberg and their ECO headline making FUD...
Most of the climate change thing is BS I believe personally, but people aren't allowed to go against this new religion - they have to believe or called deniers... CO2 is only 400ppm or 0.04% of our atmosphere. Methane only about 0.00017% of earths atmosphere.
Guess what holds in heat more than anything else on our blue planet... Water vapour, i.e. clouds...
The eco preachers only normally show CO2 data going back 800k years. 150m years ago, CO2 was about 1500ppm and the world was much greener, fertile and healther than it is now. Now much of our planet is ice-caps and deserts...
But people aren't allowed to say that more CO2 makes plants grow bigger, faster and richer... It's vital we reduce carbon, which most creatures breath out, and every creature is made of...
Sorry, but I'm a bit of one of those deniers... I think C02 increase is a result of a thriving, improving planet, not worsening. It just means there are more creatures alive on the planet. look back over millions of years, CO2 always peaks just before a mass extinction event. i.e. the dinosaurs were at their peak, when the asteroid hit and destroyed them all, then CO2 decreased sharply.
Anyway, just some fairly irrelevant thoughts lol

My only concern on this (and I've bought back in and more than I had before), is that the natural gas futures have been dropping over the last week, by about 15%, so how much has this news been used to take into account the natural gas cost reduction.
Personally, with the growth plans DEC have, I'm still confident in the outlook for them over the next 3 years or so at least.

"· Wells sampled represents less than 0.05% of the Company's total portfolio of assets
· Maintenance to remediate the emissions from the sampled wells took less than 2 weeks and cost between $0 (labor only) and $300 per well for a total cost of less than $2,000 for all wells"

So a potential total cost of only $40,000 or so to fix all the wells based on that math...

I'm buying in again gradually

Watch the rebound...

I'm clearly a bit tight and don't have a bloomberg subscription

lol I just noticed I hit a 1,500 unit limit buy at £1.19.
Panic sold that buy and another 3,000 unit holding at 109p and 5% loss overall.
Now it's all about knowing when to get back in, which I think will be today...

(not be noticing this fall) I meant

I guess no need for an RI now.
Somebodies getting some great pricing from that article...
Bet I sold out at the bottom at 109p and it's about to rebound now.
God I hope not. Now I hope it continues to fall to 99p or lower, and if so I'm really sorry for everyone who may be noticing this fall and will make more losses if it continues to decline.