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Not sure this is gonna help matters at all.

Things are starting to look bleak, can only hope interest rate cuts in America and gas prices rises soon

LOTM

Not sure your logical follows.

As they need to sustain thus for many weeks, months to buy back the number of shares issued. No evidence they will do so and more likely they have just done so to support the price temporary. Secondly If they continue buybacks at this level for months then the share price will certainly rise thus they would be buying the capital back at a higher price. Thirdly if they had the cash at hand, why not just pay it and reduce the share dilution all together.

I very much suspect they had a few million left over from what they budgeted for the acquisition and have now used it to support the share price temporary, not sure how long they can sustain a buy back of this level but expect we'd soon return to the 3750 level.

Long term I think DEC are trying to buy everything they can on the cheap betting prices will go up in the future and interest would be lower (therfore refinance). It's a gamble but one that can very well payout handsomely

I know alot here are not happy with the debt position ( can't say I'm happy myself). However if you ever wanted to grown a gas company .... this is the time, low gas prices (depreciated values), high interest rates( difficult to finance purchases so not many buyers and sellers financially stretched) and smaller producers pushed to the edge so willing to sell.

Long term, provided gas prices rise and all indicators suggest they will, then these will all be good deals. As some one else said a bit of jam tomorrow scenario.

It's also interesting that companies are willing to take on equity in dec in lieu of cash. Suggest they are comfortable the price would hold or likely go up (35mill become 42mill with a 20% share rise)

I am as sceptical as the rest regarding what this company states and what it does, however I would say this is probably the best time to do more acquisitions.

Gas prices are low, interest is high, so alot of smaller gas producers are looking for capital to survive. DEC is well hedge so doesn't have any immediate risk and appears to be using all avenues it has to accelerate acquisitions, I have no problem with this and think it's a good idea. What I do have a problem with and is what others have said is the mixed messaging (we will reduce debt, we will increase share buy back) and then doing somewhat the opposite.

Hopefully in 12-18months we can look back and say good job on these new Wells when gases prices are back above $3

I don't think the debt being halved by 2026 would be reached now given the new debt taken on.

I also think it's a good ideal to be buying more Wells now, at a point when others maybe struggling with cashflow and need to sell desperately. The model of this business always needs more gas Wells as they are slowly declining (although at a weirdly slow rate for dec Wells, is the SAM in action or some numbers game by DEC).

DEC has a very high level of debt and with interest rates so high it doe not inspire investor confidence, especially for new investors. I am hoping as this environment changes (although this appears to be slower then expected given the feds comments) the share price will start to see some recovery.

Trump? maybe it's better for gas and oil but overall it's bad for everyone, happy to take the hit if it means he doesn't get elected

The price paid at any one date for the BBs is really irrelevant as over the long term it will even out.

I suspect the main reason the BBs have increased is before DEC didn't have much free cash and now after the new ARB and increased borrowing facility they do have more free cash and thus bigger buy backs when needed (price becoming depressed)

Scale and time of recover is very hard to tell but will likely be linked to price of gas and interest rates, an educated guess give cyclical pattern of gas and expected interest rate changes points at 6-12 months.

The reason for shorts is that DEC still has some very large liabilities and it's not clear how it will if ever be resolved (all those Wells need to be plugged) and given the drop in share price, when there is blood in the water the sharks come looking.

In kind of feel stuck now, as I have a decent amount already invested and am aware this can go up as well as down. I suspect it will recover and then some to give me a healthy profit but I am also aware some new law/legislation ect could mean I have a substantial loss also.

Day to day running of the company appears to be in good order with sufficient funds to cover cost plus some extra for BB and new purchases.

I just topped up 3k, trying to bring my average down.

Only using dividends payments from here and other stocks to top up as I don't fully trust this one, but overall the fundamentals and hopefully continued upward trend of gas should be long term it heads back towards £20.

My average is around 1650 so still significantly underwater for me

Fine line between over enthusiastic and ramping but I think its very clear that skiramp is about 5 miles past that line in his ramping. Also I found his posts inconsiderate to the long term holders.

agree re the pull back - some profit taking is expected but I hope it holds above 1100

Hey guy's,

I've been following this stock from a far for a little while, was kicking myself why I didn't get in earlier at around 180s.

However I'm confused regarding the current sp decline, any specific reason for this ?

As the new isa allowance has opened up I'm thinking of dumping the entire 20k on this stock if it reaches low 190s.

Ofcourse I'll do my own reading but libg term holders perspective is always welcome

I would say strategicly dec has made the right decision by reducing its dividend burden, especially as we enter a low yield gas profit phase (even if hedged).

First it means they can safely meet current dividend expense and fear of sudden cut or even insolvency are reduced.

Secondly it frees up cash for some choice investment opportunities that are likely to open up, as other producers may not have hedged and would need cash injection/bankruptcy but outs.

What really sucks is that the company was advertising and insisting it would not cut dividend and lured in alot of people at higher prices, this makes them lose alot of credibility going forward. Instead of all that rns stating everything is OK maybe a heads up re future financial difficulties would have been better.

Hopefully the share continues its recent revival, I will continue to reinvest dividend but reluctant to add new capital

Thanks for that ACE very insightful.

The real question is how long will gas prices be depressed. If its only 12-18months then DEC should be well covered with hedges and making a little less on the 15-20% that's unhedged.

Any longer and then the company and investors will be in real trouble. Last time I recall something like $3 dollars is the price dec made alot of there forecast but I can't remember where.

I'm gonna hold for now and reinvest what I get which is diminishing low

Below message should read 4 million dollars

The benefit is slight.

You get a 5% premium on the stock price at the tine of the exchange. You can then, if so wish so, use the capital return to buy more shares.

I feel this is more targeted at large II who want to sell out but if the do on the market would lower the price and thus their return. Also a good point from troksy that dividend tax is different in America so pi might prefer the capital return.

If only 10% take up that would still equate to a large BB of approx million dollars, nothing to be sniffed at especially if this occurs every 3 months.

I think its an option that makes sense to a few but doesn't hurt the company, so a win win.

Not sure why this has been discussed so endlessly on the board.

Clued I think GG has come a bit as he made a bit more sense then some of the current comments on this board. I think we all have to except that 50% of people have below average intelligence

I'm beginning to think GG was right about the members on this board.

The max tender offer will cost is the dividend amount +5%, that's it no more then that. They probably calculated this will be a nill effect as the next dividend would be reduced by the number of shares repurchased.

The benefit to the company is that they have enacted a BB with money already allocated for divi. I feel this is primarily aimed at ii that what to sell there shares rather then pi who wouldn't gain much.

I am not sure what the take up of the offer is hut assume it would be low 20-30% would be amazing.

For those holding long term, and for the company, the more who take up the offer the better as it makes future dividends less costly and more certain.

Also volumes incredibly low so far, only 32k out of a typical 500k traded shares.

Impressive share climb today, looks like the market likes the idea of dividend or share buyback.

Smart move by the board but it really depends on how many people take up this offer

That's actually a reduction, as in new money the 160 would equate to 3200.

Still shows this stock is massively oversold

Blacksteel, very interesting post.

Unfortunately I don't have the time or accounting skills to go through the numbers.

Would you mind going the the numbers with me regarding why you suspect DEC would have some difficulty with cashflow/divi payments come second half of 2024.

From my rudimentary understand this is why they recently sold some premium gas well fields and raised some 200m in extra capital to pay off debt ect

From the outset I'd like to point out I am bullish about DEC.

In the last few months this forum has started to sound more and more like an echo chamber, anyone who criticises the stock is shut down. Just today some legitimate questions regarding trading update and divi were completely shot down.

Based on this forum alone everything is great with dec, when in reality the share is over 60% down, and its not just a short attack.

I was hoping for a little more from management regarding the current position and explaining future out look outside of a few sound bites. I understand this is a trading update only but given the unique position of the share price a little more can be expected.

Anyway in future can we all be a little more open to criticism as it will make for a better debate around the truth about dec.

This is a crazy stock.

Alot of this stems from the management, they have made the company look more vulnerable then it should (based in the accounts, but I have to take it at face value that's correct).

I thought about selling out but at this stage thinking might as well see it through.

Only silver lining is the states do appear keen on this share and the volumes today are very high 500k+ shares.

Let's see what the trading update brings