One minor addition: The Camino acquisition seems to have closed already at the start of July (which is Q3, but I read the article implying this was still pending. But maybe that's just me...)
Hi there. Thanks once again. Personally, jobbing in and out of a share that is incredibly cheap threatens more regret than reward. But if someone can accurately tell me the turning points in real time then I would be very grateful :0)
Oak, a nice data driven perspective. I am of a similar opinion that the shares are currently undervalued and represent excellent value.
One additional observation on the Sheridan acquisition, in the RNS on 26th Feb, the PV-10 was estimated at ~$310M, however from the latest 8K it looks like the actual PV-10 at deal close is $344M an 11% improvement (driven by an increase in proved reserved).
The reason I bring this up is that if you analyse recent deals this is part of a consistent pattern, where additional value is realized at deal close/post deal close.
It really would not surprise me if DEC closes another bigish deal in H2 26 after the camino deal is officially closed (which as Mr Schmidt rightly points out should be imminent - I am expecting the official RNS in August).
One thing that is really not appreciated is that DEC has created a monster deal making entity with fianance, operations and technology aligned so that it is able to quickly and smoothly execute deals and drive additional value from assets purchased. This is difficult to replicate.
Thanks, as usual.
One minor addition: The Camino acquisition seems to have closed already at the start of July (which is Q3, but I read the article implying this was still pending. But maybe that's just me...)
https://ir.div.energy/financial-information/sec-filings/content/0001922446-26-000057/dec-20260702.htm
Hi there. Thanks once again. Personally, jobbing in and out of a share that is incredibly cheap threatens more regret than reward. But if someone can accurately tell me the turning points in real time then I would be very grateful :0)
Oak, a nice data driven perspective. I am of a similar opinion that the shares are currently undervalued and represent excellent value.
One additional observation on the Sheridan acquisition, in the RNS on 26th Feb, the PV-10 was estimated at ~$310M, however from the latest 8K it looks like the actual PV-10 at deal close is $344M an 11% improvement (driven by an increase in proved reserved).
The reason I bring this up is that if you analyse recent deals this is part of a consistent pattern, where additional value is realized at deal close/post deal close.
It really would not surprise me if DEC closes another bigish deal in H2 26 after the camino deal is officially closed (which as Mr Schmidt rightly points out should be imminent - I am expecting the official RNS in August).
One thing that is really not appreciated is that DEC has created a monster deal making entity with fianance, operations and technology aligned so that it is able to quickly and smoothly execute deals and drive additional value from assets purchased. This is difficult to replicate.
https://ir.div.energy/financial-information/sec-filings/content/0001922446-26-000061/0001922446-26-000061.pdf
Thanks Oak. I've been in and out of DEC quite a few times over the years, it's my go to hokey cokey share!
In lower volatility times, I tend to add to and trim by 10% when the SP moves by that amount, to leave me at the same approx holding, usually £10k.
But I did sell the lot at $19 ish some weeks ago, for 30% profit. Smartarse? Not so smart as I was tempted back in at $15. Dumbass?
Might add at these levels, thanks for the prompt, especially re imminent trading update and for another fine articoil 😇
Wonderful article as always OB, thank you. I shall be shuffling funds this week to take a piece of the DEC share !
OB (or anyone else) have you thought of using covered calls and cash secured puts on this to generate extra income while you wait?
This is one of my highest conviction holdings. Thanks for the continuing coverage OB.