The Lemon Fool

Click on the thumbnails for expanded image.

Natural Gas (Henry Hub) prices over five and one year periods.




If you want to settle down for a 46 minute interview with Rusty Hutson (CEO/Founder) podcast to get some insight into the man then click here

Webinar today, link to register is below :

https://us02web.zoom.us/webinar/registe ... XIamT6sAqg

.

Webinar video now on Youtube : https://youtu.be/_UZgRiBMPsA

.

New DGOC research note, target price raised to 160p.

http://www.more-ir.de/d/21809.pdf


.

Another director share purchase.

Yet another director buy.

Diversified Gas & Oil PLC (LSE: DGOC), the U.S. based owner and operator of natural gas, natural gas liquids and oil wells and midstream assets, announces that on 12 November 2020, Melanie Little, independent non-executive director of DGO, acquired 20,000 ordinary shares of 1 penny each in the Company ("Ordinary Shares") through the market at a price of 113.97 pence per Ordinary Share. Following this purchase, Ms Little now holds 40,000 Ordinary Shares representing approximately 0.01% of the Company's issued share capital.

Cenkos note on DGOC in the link below, PDF file.

https://ufile.io/5mxyj0c8

.

They have an awful lot of debt.
The estimated divi cover is good at 1.9, and of course the yield is very attractive. But a double-digit yield... hmmm.
Still, if one doesn't take a chance on these newcos now and then... so maybe in for a tickle.

V8

https://www.energyvoice.com/markets/282 ... d-gas-oil/

.

DGOC CEO wrote:We set it up from day one to focus on free cash flow and, as we’ve grown, that strategy really hasn’t changed. The industry has operated for too long on negative free cash flow.”

He added: “I still have about 3% of the shares in the company and I’ve bought more since we went public too.

“We’ve made it clear to our shareholders that we’re not going to do dilutive deals. I’ve got a big stake and the last thing on earth I want to do is hurt my holdings."

One key thing about DGOC is that they have a long term hedging portfolio
This can be seen on page 38 of this report:
https://d1io3yog0oux5.cloudfront.net/_4 ... esults.pdf

Where you can see the details of the hedging programme up to 2030. The idea is to protect revenues to enable the payment of any finance costs and repayment of debt when it comes due.

Other companies tend to hedge in one or two years.

https://www.malcysblog.com/2020/12/the- ... list-2021/

.

Write up on DGOC on Seeking Alpha

https://seekingalpha.com/article/4400756-diversified-gas-oil-u-k-company-pioneering-new-path-in-u-s-oil-and-gas-sector

.

Proselenes wrote:Write up on DGOC on Seeking Alpha

https://seekingalpha.com/article/4400756-diversified-gas-oil-u-k-company-pioneering-new-path-in-u-s-oil-and-gas-sector

.

Thanks, interesting link. I have my eye on DGOC currently as my next high yield purchase...

New Cenkos note on DGOC in the link below........ PDF file

https://gofile.io/d/kGPmPs

.

First Berlin note on DGOC

http://www.more-ir.de/d/22051.pdf

.

https://www.herald-dispatch.com/busines ... 24fc4.html

Business

Diversified Gas & Oil announces opening of gas control center in Charleston

The Herald-Dispatch 22 hrs ago

CHARLESTON — Diversified Gas & Oil Corporation announced the opening of its state-of-the-art natural gas control center in its Charleston regional office.

The new facility will initially support the monitoring of the Cranberry Pipeline network, which transports 70 million mcf (thousand cubic feet) of nat...............

Interview with Rusty the CEO

https://www.youtube.com/watch?v=Nc8uy-XjfCU

.

These have fallen back recently.
Yield >10%.
An opportunity?

There is concern that they may have to tap investors or take on more debt.

Over on ADVFN - where John Hemming late of this parish still posts - someone has made the interesting observation that this company is as much about the management of hedges as it is about O&G.
So, somewhere between an Oily and a Financial.

My experience of ultra-high yields is that they eventually unravel.
Tempted to buy more but hmmm.

V8

Cenkos update on DGOC today.

https://gofile.io/d/nr90z5

PDF file in the link.

CEO in a Proactive video

https://www.youtube.com/watch?v=1fIpF_wcCTc

.