Member Info for Mulder

10 x 5p EPS = 50p

Yet SP is down! Irrational, rigged market.

Agree this is hugely undervalued on a P/E of just THREE but Mintails may complicate any sale i.e. how motivated is Cobus to see it through? I guess he could be retained in his current role if PAF was taken over.

Diversified Energy Company PLC (LSE:DEC, OTCQX:DECPF) (DEC) is delivering consistent and reliable results and its shares are at a substantial discount compared to the oil firm’s American peers, according to analysts at stockbroking firm Cavendish.

In a note, following DEC’s most recent financial results released last week, analyst James McCormack retained a 150p price target – suggesting around 100% upside to the share’s current price of 73.45p.

McCormack highlighted a potential pathway to DEC securing a more competitive valuation as it heads for a stock market listing in New York.

“The board believes that the US listing will raise the group’s profile in the US, broaden the company’s potential investor base and increase its research coverage,” the analyst said.

“The dual list will align DEC with its US natural gas focussed peers and provide access to a larger pool of energy-specific investors, in turn providing an opportunity for DEC to narrow the valuation gap to its peers.”

McCormack added: “DEC trading at a c2.0x lower multiple to its US peers highlights the current dislocation and structural issues in the UK market, which are particularly prevalent in the small-cap sector … a listing on the NYSE could provide an opportunity for DEC to narrow this valuation gap.”

Diversified has announced that it intends to seek an additional listing of the Company’s Ordinary Shares on the New York Stock Exchange (the “NYSE”) (the “US Listing”). No new Ordinary Shares are being offered or sold in connection with the US Listing, and there will be no change in the total issued share capital of the Company following the US Listing.

I have put the entire DEC announcement in below as it contains a great deal of technical listing data. But the key point is that readers know that the previous plan to list in the US was pulled after company brokers detected a worry that such a listing would inevitably come with a raise that would affect demand for the shares and thus it is crucial that this listing is going ahead with no raise attached to it.

I have spoken to Rusty Hutson about this and he believes, as do I, that it will significantly advantage DEC for it to be listed in the USA. The shares will be fungible and accordingly make it attractive to hold the shares in either jurisdiction. More importantly I think that US investors will like this and I would not be surprised to see a decent amount of demand drag on the shares in a westerly direction.

If the share price does not pick up before the AGM I fully expect angry shareholders will deliver a rocket and a few verbal volleys to the top brass including the idiots in IR.

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How many shareholders bothered to email Mr Hira at Investor Relations?

Gold is pushing towards $2,000 again today yet this is plummeting.

The London share price consistently lags the SA price.

We see this as a positive and should entice US investors to buy in. Many will buy simply for the yield.

The Eskom situation is also much improved. Load shedding is minimal.

Https://www.kurdistan24.net/en/story/33163-KRG-is-ready-to-resume-oil-export-process,-stresses-PM-Barzani

That should have read demotion to FTSE 250 is currently £2.8 billion.

Vodafone market cap = £20 billion!

Are you saying the experienced oil and gas analyst MGW has got this badly wrong then?

Debt: EBITDA has remained broadly the same.

Update must be imminent.

AGM next week.

Gold up sharply and this hardly moves. A p/e of 3 is insane...

Some people are talking absolute crap here. Vodafone has a market cap of around £20 Billion.

(The threshold for FTSE 250 is

Oil & Gas Analyst MGW

For yet another quarter DEC has presented an enviable trading update in which average production was 804 MMcf/d in line with the market whisper, perhaps more important is that they have maintained industry-leading consolidated corporate decline rate of ~10%.

This has led to $140m of EBITDA and with adjusted Operating Cost per Unit of $1.63/Mcfe ($9.81/Boe),(b) down 2% versus 1H23, gives adjusted EBITDA Margin(c)of 52% and yet another highly impressive annualized Free Cash Flow Yield of 22%,(d) including the impact of working capital changes giving a leverage ratio of 2.4x.

The company has also announced its third quarter dividend which is maintained at $0.04375 per share at which DEC yields over 20% and company policy is to pass on its incredible FCF yield and very high margins to shareholders. One of the valuations used by investors is that yield and with inflation falling in the US and the UK recently, rival investments such as Government Bonds are slowly becoming less of a rival attraction.

I spoke to Rusty Hutson this morning and remain very confident that DEC is in a very strong place, it keeps all its options open in terms of M&A and of course has an abundant portfolio from which to trade. It is still transitioning assets from asset deals in the last year and that includes using any drilled but uncompleted wells in the portfolio.

I remain totally convinced that DEC has an amazing portfolio from which it can trade and create significant free cash flows and a very high margin, this can continue and in the meantime with a yield of over 20% and in due course every chance of a capital appreciation which makes DEC a compelling investment.

Trading at a THIRD of its book value!

'The Iraqi oil minister was seen at the pipeline ahead of apparent switching on the crude to Turkey....'

Significant.

Probably.

Energy costs will be significantly down year on year remember, should help margins as will reduced head count and higher tariffs.