Member Info for PIKEMAN

Https://marcellusdrilling.com/category/weekly-permits/

I see DEC continues to apply for and receive new drilling permits. 2 more last week in WV..

Early days. They will be once the major food Companies start using SALT in their products..... It's something that the food companies will want to make VERY public..... "The healthier alternative...50% lower salt but no change in taste". ...

Jonhas. Post the question on ON substack. He usually responds quite quickly

Giancotti. You make some good points although I think that it is important to point out the vast difference in expected SALT revenue and margins/ kg for B2C Vs B2B. From the customer perspective ingredient cost is a major consideration but the actual end cost also considers any changes in production processing required. IF .....SALT can be used without significant disruption to current processes (for example use in a slurry) then this is a major plus. From the SALT perspective, volume is the key when it comes to cost and margins. Announcements re brand adoption rates during the next 12 months will determine whether SALT is a ten bagger! What I like about this story is the potential to scale the business and the stable cash flow once accepted.

Lord. Yep, as I stated no progress in salt reduction solutions over the past twenty years. As I said, current alternatives have failed to pass the taste test. Possibly a reason why SALT has been endorsed by a major global player? I rest my case!

Lord. Just checked this morning with a former colleague who is still in the processed food industry. No substantial changes over the past 20 years. Food manufacturers reduce salt to a point and then taste drops off a cliff, customers complain and sales collapse. The Tate & Lyke product apparently just does not get the job done when incorporated in large scale production processes. Ok for the retail market for "healthy living" conscious individuals but the reality is that the vast majority of our salt consumption comes from the daily consumption of bread, ready meals, tinned soups, baked beans etc.... if SALT is the real deal it will be bought out by a multi national within 12 months

Lord. Having briefly been involved in "low salt" solutions almost 20 years ago and assuming nothing has changed, the existing alternatives have not been successful. This is particularly the case in processed foods like soups, frozen foods, cereals and condiments. Quite simply, at some point taste falls off a cliff! Brands face losing millions of sales and profits of consumers have a bad experience. If SALT have received the endorsement of adoption of a major brand for at least one of their lines then this is a game changer. Margins will be low for SALT but the volumes, spectacular.

The last packaging of assets to sell to a financial investor shows that Rusty is capable of innovation just like he was with the ABL's. Remember the balance sheet is only PDP reserves. I am confident that there will be more of the same type of innovation in future, either to package and sell some of the assets or to acquire new ones. I don't know but there must be plenty of declining assets owned by operators which don't fancy managing them with the ESG and ARO obligations but would appreciate a hassle free annuity from assets managed by DEC.

Oiled. We all have our concerns largely due to the share price but "rolling debt" is inaccurate. The vast majority of the debt is amortising and fixed. The hedges are in place to cover the debt repayments. If the debt needed rolling over I would be worried but this is simply not the case. With no further acquisitions these assets are owned sent free. Remember DEC paid only 4 PDP assets.

Andy. The vast vast majority of debt is fixed and amortised and is in silos. DEC is essentially debt free in 5 years.

Trek. Agreed. This is an opportunity for DEC to address all the issues (ARO's, depletion, debt, hedging, emissions etc) of the past 12 months and to clearly set out again the strategy for the future and show it's ESG credentials . With low NG prices, subdued new drilling, ABO compliance, there will be plenty of attractively priced assets from operators which are not set up to manage mature NG wells that DEC can bolt on to their portfolio and "sweat" the assets. Frustrating that we are where we are but DEC has always been a marathoner rather than a sprinter.

Usual calm analysis from the OB of the shorters presentation

https://open.substack.com/pub/theoakbloke/p/dec-orum-est-loqui-verum?utm_source=share&utm_medium=android&r=19pp7m

Enough errors, omissions and assumptions in the Snowcap report to more than question it's accuracy. Good to see that US investors who have a broader understanding of the O&G industry appear to agree with the OB. Shareholdings migrating across the pond which is a good thing. I should imagine that the titans of the industry like the Rice brothers are filling their boots in the January sales of DEC stock!

I suspect DEC may be in a closed period due to the financial report due soon. Certainly would stop directors Baby's. Good time to launch a short attack!? If the SP is as low after the report I will eat my hat!

Https://blog.gorozen.com/blog/natural-gas-market?_hsmi=290658219&_hsenc=p2ANqtz-89UtXNvx5j_v8LqlWvM8zGustUgbVPhzJnpC_LFHfD2LnHXEMODBCRgebxGDDlxQAQEKZ_H4RFLQyFzQusda4u0M_O4Q

I think that the financials are due to be reported shortly and most likely they are in a close period preventing buying or selling

Well the company can't do any deals at current share price using equity. Can't think of any deal which compares with BBs. The question is how sustainable longer term the business is without them. This has always been the concern. Is it a beast which must continue to eat to survive? The value is certainly there, the PDP resources, the pipelines and unproven reserves but how do you put a real value on these?

I am comforted that Rusty and his team know the gas business and the assets they have acquired. He also knows finance better than any oil and gas CEO I have met who tend to be engineers who can only dig holes. As you say this situation is dynamic. There are multiple ways of squeezing more from the assets. They bought on the basis of PDP and there are options for infill drilling, strategic cooperation with other NG companies focused on E&P with wells reaching exponential decline rates and other strategies. The key is that DEC has expertise and now scale. I am confident that Rusty can either acquire or manage existing portfolio to keep decline rates lower ,retiring equity and sustaining divs. A lower risk profile IMO than hoping to hit a gusher!

The Oak bloke has totally dismantled the landowners case.

Https://open.substack.com/pub/theoakbloke/p/dec-iphering-the-ohio-river-valley?utm_source=share&utm_medium=android&r=19pp7m