Member Info for TerryM1

If Rusty was interested in the SP he would not have pursued polices that tank it 8 times in a row and set up a deal without finance, Rusty's main priority is to become the new JR and SP tanking is just a small price to pay for him.

Anyway he can just give himself more shares as he often does telling us it is for the great work he is done in tanking the SP.

The new BB price is $14.35 which is $0.15 below previous BBs which is not good news but I guess the good news is BBs are still on the table only required 11,296 shares to keep the SP falling lower although this at a time when dividend reinvestment takes place.

I think MrG123 has a point in that Trusty Rusty is not interested in the SP climbing now he has more finance not linked to the SP so lower BB price and only small volume. Must admit I think that Rusty now has only minimal interest in the SP since the deal.

I am just about breaking even now so not bad given SP drop after LSE closed yesterday.

Jim800

Am on the wrong side of this trade at least for a time, not in a rush to sell so will hold on, you win some you lose some all part the risks you take.

Bought some for trading in the hope either BBs kick in and push SP up or this is a dip and SP goes up anyway.

Be interesting to see if BBs kick in again below below $14.50 or now not important as new deal done.

Https://www.proactiveinvestors.co.uk/companies/news/1073907

MrG123

Well said, looks like you are now a full member of the unTrusty Rusty club. As I have said for a time DEC a poor investment but great trading share.

You SHED shares will be replaced by LMP at a ratio of 0.5612 and a cash payment made of 0.428p per SHED share, my II account has the new LMP shares but no cash payment yet, my HL accounts still showing SHED with valuation etc missing and "This stock is an interim line resulting from a corporate action that will be exchanged for cash and/or stock." showing and no cash payment yet.

JC01

ABS is the second part of the process, not part of the deal but an ambition with no guarantees, first the assets will need to be bought, then packaged and put up for sale. At present we have no idea if DEC will be taking a % of the assets before going up for sale and if anyone will buy these given the ARO issues unless this handled as part of the deal and part of DECs responsibility in running the assets. At present too many known unknowns which seems to be the opinion of the market at present. We need some details and so does the market if DEC SP is to not have another cloud over it.

There are no statements clear or not on whether DEC is putting money into these new assets or who will be responsible for the AROs, in fact no information I can see except Carlyle provides the initial capital for asset acquisition, DEC will run the assets and they hope to package some up and sell them on.

There was a statement in one of the releases

"This structure allows DEC to expand its operational footprint without necessarily assuming the full capital burden on its balance sheet."

This gives the impression DEC will be on the hook for cash, which sort of makes sense as DEC raised $300m which is not required for current day to day running of the company so could be for this or could not.

Also are AROs part of running the assets? who knows, if so how will the ARO costs be handled?

At present there is close to zero information on how this is going to work and even if the first deal is structured in a particular way there this no guarantee the subsequent deals will be the same.

Difficult to determine market reaction as so much going on elsewhere affecting the SP but as SP down at present looks either not liked that much to neutral, until more info released or a deal is struck so details can be seen SP probably in a holding pattern, if SP goes much lower BBs may well kick in.

JC01

It certainly looks a lot better than the recent Trusty Rusty deals but as I say the devil is the detail which we don't have. There is no definitive statement that DEC will not be putting money in and wording certainly suggest this is possible, and as I mentioned who is responsible for the AROs, again no mention.

So this looks on the surface a good deal but given the usual lack of info from DEC and Rusty's track record I am not total convinced, we shall see but hopefully not too long in the future. As AceofClubs correctly says this needs to turn into increased FCF per share without further liabilities and in the end that is all that counts

Sorry shoud have been

not on the hook for cash

After the initial dip looks like we are back where we started, as I say the devil is in the detail and if DEC are not on the hook for cash this should be a good deal, perhaps very good. If DEC have to stump up cash all bets are off.

Also there is the question of the AROs attached to this deal, if DEC are not liable and get the contract to cap the wells happy days, if there is liability which is probably not the case if DEC are not on the hook for case we need to know.

It would be good to have something more than hope that this will one day come right.

Can't wait for Peel Hunt , Stifel Nicolaus Europe Ltd, Tennyson Securities, OB and Rusty's mum to tell us what a good deal this is and Rusty deserves more free shares.

"Credit for oil and gas has been drying up and/or becoming very expensive in the last 2 years"

You have to ask yourself why is this the case and why only DEC seems to be keen to take this on.

"There will be some desperate sellers"

Like the retailers stuck with Betamax VCRs perhaps, I am not say this is the case but what does everyone else see that Rusty does not.

As well said "it is FCF that counts" and we have to ask ourselves has the FCF been worth the trashing of the dividend and SP along with the high priced long term fixed rate debt, obviously not.

Perhaps this deal will be transformative and we are heading for sunny uplands but in the last 2 years Rusty has done many many deals and not managed to get one to improve the SP or dividend but instead trashed both, I hoped to be proved wrong but fear the best thing Rusty can do is resign or at the very least do nothing, we will see.

Another aspect of this deal is it will fog up the accounts for a time until the true ramifications can be seen so therefore the gordian knot of accounts will continue and then probably be kept in palace by the next deal and shareholders in the dark as to the true effects of Rusty's deals.

As I said and so have others DEC needs a period of stability so at the very minimum we can see what is really happening but Rusty can't leave things alone, as soon as one of his deals trashes the SP he starts on another.

The market not reacting too badly at present but won't be so good as/when they find out DEC on the hook for cash which seems the most likely scenario, also this is not just a one off deal but the start of multiple deals so Rusty has achieved his goal an ongoing deal after deal situation and help him become the new JR.

JC01

OB will tells us anyone who questions that DECs is not doing all it can for shareholders (including the directors giving themselves more free shares) and DEC will be the greatest investment of all time is obviously a conspiracy theorist.

From Rusty's track record and the complete lack of information the odds are it is another leverage trick.

As usual the devil is in the detail which we don't have.

"This structure allows DEC to expand its operational footprint without necessarily assuming the full capital burden on its balance sheet."

It is not clear form these articles if DEC is on the hook for more cash and if so how much but it certainly looks so from "without necessarily assuming the full capital burden", the markets don't seem to like it given the SP went down in NY before the ceasefire was announced. Perhaps this is why Rusty borrowed $300m (from memory) at 9.75% when this was not needed.

A positive aspect is

"Carlyle intends to pursue opportunities to securitize these assets"

Some of the costs of the assets to be unloaded to other people but of course it is not clear if this will happen.

Until we know if DEC is going to put cash into this deal which looks likely and how much (so more debt for longer) there will be a shadow over the SP and the fact that there is no statement stating DECs financial involvement is concerning especially given DEC huge debt pile and Rusty track record of keep shareholders in the dark. As usual us shareholders will be the last to know.