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Diversified Gas and Oil (DGOC)
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- Lemon Quarter
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Re: Diversified Gas and Oil (DGOC)
https://www.investegate.co.uk/diversifi ... 0633EHVIR/
First Berlin Equity Research has published a research update on Diversified Gas & Oil PLC (ISIN: GB00BYX7JT74). Analyst Simon Scholes confirms his BUY recommendation and increases the price target from GBp 130.00 to GBp 150.00.
Summary:
Following the H1 results, we have revised our dividend discount valuation of DGOC shares to include both a higher dividend in the second quarter of USD0.0375 (FBe: USD0.035) than forecast and rising gas futures prices since ours Cover recording at the end of June. Based on a futures curve rising for the remainder of this decade and DGOC's existing hedge portfolio, we expect the company's realized natural gas prices (after the impact of cash-settled derivatives) to be in the USD2 range over the next five years .34 / mcf to USD2.57 / mcf will remain stable. This compares to our 2020 forecast of USD 2.30 / mcf. The full cash cost for H1 / 20 (after operating costs, investments, costs for closing wells and cash interest) was USD 1.36 / mcf. This indicates a free cash flow return on sales of at least 42% to 47% over the next five years (economies of scale should lower unit costs as the company expands). DGOC should therefore have enough firepower to continue the regular acquisitions that have secured over 95% of its current production since early 2017. The goal of DGOC is that no less than 40% of the adjusted free cash flow, defined as adjusted EBITDA (hedged) minus maintenance investments, interest expenses and costs for the decommissioning of wells, should be paid out as dividends. According to our forecasts, the payout ratio based on the current dividend level will be 43% this year and 44% in 2021. We therefore consider the current dividend to be sustainable. The combination of a dividend yield of over 10% and strong and stable cash generation confirms our view that the stock is significantly undervalued. In addition, the current market capitalization justifies the inclusion of DGOC in the FTSE 250 index. New index members will be announced after the market closes on September 2nd with effect from September 21st. Our recommendation is to buy with a price target of £ 1.50 (previously: £ 1.30).
You can download the full analysis here: http://www.more-ir.de/d/21507.pdf
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First Berlin Equity Research has published a research update on Diversified Gas & Oil PLC (ISIN: GB00BYX7JT74). Analyst Simon Scholes confirms his BUY recommendation and increases the price target from GBp 130.00 to GBp 150.00.
Summary:
Following the H1 results, we have revised our dividend discount valuation of DGOC shares to include both a higher dividend in the second quarter of USD0.0375 (FBe: USD0.035) than forecast and rising gas futures prices since ours Cover recording at the end of June. Based on a futures curve rising for the remainder of this decade and DGOC's existing hedge portfolio, we expect the company's realized natural gas prices (after the impact of cash-settled derivatives) to be in the USD2 range over the next five years .34 / mcf to USD2.57 / mcf will remain stable. This compares to our 2020 forecast of USD 2.30 / mcf. The full cash cost for H1 / 20 (after operating costs, investments, costs for closing wells and cash interest) was USD 1.36 / mcf. This indicates a free cash flow return on sales of at least 42% to 47% over the next five years (economies of scale should lower unit costs as the company expands). DGOC should therefore have enough firepower to continue the regular acquisitions that have secured over 95% of its current production since early 2017. The goal of DGOC is that no less than 40% of the adjusted free cash flow, defined as adjusted EBITDA (hedged) minus maintenance investments, interest expenses and costs for the decommissioning of wells, should be paid out as dividends. According to our forecasts, the payout ratio based on the current dividend level will be 43% this year and 44% in 2021. We therefore consider the current dividend to be sustainable. The combination of a dividend yield of over 10% and strong and stable cash generation confirms our view that the stock is significantly undervalued. In addition, the current market capitalization justifies the inclusion of DGOC in the FTSE 250 index. New index members will be announced after the market closes on September 2nd with effect from September 21st. Our recommendation is to buy with a price target of £ 1.50 (previously: £ 1.30).
You can download the full analysis here: http://www.more-ir.de/d/21507.pdf
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- Lemon Quarter
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Re: Diversified Gas and Oil (DGOC)
DGOC enters into the FTSE 250 index, effective Monday 21st Sept.
https://mondovisione.com/media-and-reso ... mber-2020/
.........The FTSE 250 Index will see the following changes (in alphabetical order), in addition to the amendments described above.
Entering FTSE 250 Index
Baillie Gifford US Growth Trust
CMC Markets
Diversified Gas & Oil
Hipgnosis Songs Fund C *
Indivior
ITV
JPMorgan Euro Small Co. Trust
Premier Foods
SDL
Vectura Group
Exiting FTSE 250 Index
B&M European Value Retail
Bank of Georgia Group
Barr (A.G.)
Equiniti Group
Finablr **
Go-Ahead Group
Hammerson
PayPoint
PPHE Hotel Group
Temple Bar Inv Tst...........
https://mondovisione.com/media-and-reso ... mber-2020/
.........The FTSE 250 Index will see the following changes (in alphabetical order), in addition to the amendments described above.
Entering FTSE 250 Index
Baillie Gifford US Growth Trust
CMC Markets
Diversified Gas & Oil
Hipgnosis Songs Fund C *
Indivior
ITV
JPMorgan Euro Small Co. Trust
Premier Foods
SDL
Vectura Group
Exiting FTSE 250 Index
B&M European Value Retail
Bank of Georgia Group
Barr (A.G.)
Equiniti Group
Finablr **
Go-Ahead Group
Hammerson
PayPoint
PPHE Hotel Group
Temple Bar Inv Tst...........
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- Lemon Quarter
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Re: Diversified Gas and Oil (DGOC)
https://www.proactiveinvestors.co.uk/co ... 28240.html
..........Imminent FTSE 250 entrant Diversified Gas & Oil PLC (LON:DGOC) is set for substantial new demand for its shares, according to stockbroker Mirabaud.
DGOC was today confirmed as one of the next additions to the FTSE 250 index, effective September 21.
It elevates DGOC’s stature in the market and will bring buying interest from index trackers, as well as ..............
..........Imminent FTSE 250 entrant Diversified Gas & Oil PLC (LON:DGOC) is set for substantial new demand for its shares, according to stockbroker Mirabaud.
DGOC was today confirmed as one of the next additions to the FTSE 250 index, effective September 21.
It elevates DGOC’s stature in the market and will bring buying interest from index trackers, as well as ..............
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- Lemon Quarter
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Re: Diversified Gas and Oil (DGOC)
It will be interesting to see the effect of this if there is mandatory buying of 10-15% of free float. One would assume that some of this has started although it may be that the trading happens closer to or even after the index date.
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- Lemon Quarter
- Posts: 1372
- Joined: November 15th, 2016, 6:04 am
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- Lemon Quarter
- Posts: 1372
- Joined: November 15th, 2016, 6:04 am
- Has thanked: 58 times
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Re: Diversified Gas and Oil (DGOC)
I like the new today. Significant growth ahead through acquisition of distressed assets and then the future gas price rise we all know is going to happen in the years ahead.
https://www.investegate.co.uk/diversifi ... 00060244B/
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https://www.investegate.co.uk/diversifi ... 00060244B/
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- Lemon Quarter
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- Lemon Quarter
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Re: Diversified Gas and Oil (DGOC)
Proselenes wrote:I like the new today. Significant growth ahead through acquisition of distressed assets and then the future gas price rise we all know is going to happen in the years ahead.
https://www.investegate.co.uk/diversifi ... 00060244B/
This is an interesting deal. It avoids dilution, but gives room for extra deals on the same cautious basis.
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- Lemon Quarter
- Posts: 1372
- Joined: November 15th, 2016, 6:04 am
- Has thanked: 58 times
- Been thanked: 389 times
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- Lemon Quarter
- Posts: 1372
- Joined: November 15th, 2016, 6:04 am
- Has thanked: 58 times
- Been thanked: 389 times
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- Lemon Quarter
- Posts: 1372
- Joined: November 15th, 2016, 6:04 am
- Has thanked: 58 times
- Been thanked: 389 times
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- Lemon Quarter
- Posts: 3858
- Joined: November 8th, 2016, 7:13 pm
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Re: Diversified Gas and Oil (DGOC)
In the end people tend to think "oil" and the market follows that to a great extent.
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- Lemon Quarter
- Posts: 1372
- Joined: November 15th, 2016, 6:04 am
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- Been thanked: 389 times
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- Lemon Quarter
- Posts: 1372
- Joined: November 15th, 2016, 6:04 am
- Has thanked: 58 times
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Re: Diversified Gas and Oil (DGOC)
Excellent results and the Q3 2020 dividend raised to be 4 cents per share.
Perfect.
Perfect.
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- Lemon Quarter
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- Lemon Pip
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Re: Diversified Gas and Oil (DGOC)
I am lining up a shortlist of oilies for consideration and this one ticks my list. One thing intrigues me. It is effectively a US company listed on the FTSE. Any particular reason? Checked the website but nothing there as far as I could see. Answers appreciated. Thanks.
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- Lemon Quarter
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Re: Diversified Gas and Oil (DGOC)
They said something like when they were smaller it was easier to get listed in the UK. I think they are getting a joint listing now of some form. I have some.
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- Lemon Pip
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Re: Diversified Gas and Oil (DGOC)
Thanks. The numbers look good but always nervous of these smaller oilies for all the usual suspectsjohnhemming wrote:They said something like when they were smaller it was easier to get listed in the UK. I think they are getting a joint listing now of some form. I have some.
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- Lemon Quarter
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Re: Diversified Gas and Oil (DGOC)
Its not really something you should think of as an oil company, but moreso a gas company.
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- Lemon Quarter
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