WTI (Apr) $94.77 +$3.97, Brent (May) $98.96 +$6.27, Diff -$4.19 +$2.40.
USNG (Apr) $3.12 -7c, UKNG (Apr) 123.66p -32.35p, TTF (Apr) €49.185 -€11.415.
Oil price
The oil price peaked, at least in the short term yesterday but after Trump gave three speeches in the evening the market fell sharply when he indicated that the war wouldn’t last much longer. Given that the new leadership in Tehran is even more hardline than before that’s not obvious but when is it? This morning WTI is down $6.53 and Brent off $7.58.
Whatever happens a great deal of oil and even more gas is being shut-in as export routes are closed and tankers uninsurable at any price. The G7 have talked about releasing strategic reserves but as ever will return to that at another time although I’m not sure they can do much especially after sleepy Joe flogged off more than half of the US stockpile…
Diversified Energy Company
Diversified yesterday announced the pricing of the previously announced underwritten public offering by certain funds or entities managed by an affiliate of EIG of 7,501,585 shares of Diversified’s common stock, par value $0.01 per share, which represents all remaining holdings of the Selling Stockholder, at a price to the public of $14.45 per share. Subject to the completion of the Secondary Offering,
Diversified has agreed to purchase from the underwriter 3,750,000 shares of common stock at a price per share equal to the price per share paid by the underwriter to the Selling Stockholder in
the Secondary Offering.
Diversified is not offering any shares of common stock in the Secondary Offering and will not
receive any proceeds from the sale of shares of common stock in the Secondary Offering.
The Secondary Offering is expected to settle on March 11, 2026, subject to customary
closing conditions.
Citigroup is acting as the sole bookrunning manager for the Secondary Offering.
A shelf registration statement relating to the resale of these securities was filed with the U.S.
Securities and Exchange Commission on March 9, 2026 and became effective
upon filing. A preliminary prospectus supplement and the accompanying prospectus relating
to and describing the terms of the Secondary Offering were filed with the SEC and are
available free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. Copies of
the final prospectus supplement and the accompanying prospectus related to the Secondary
Offering can be accessed through the SEC’s website free of charge at www.sec.gov or
obtained free of charge from the underwriter for the Secondary Offering: Citigroup, c/o
Broadridge Financial Solutions, at 1155 Long Island Avenue, Edgewood, NY 11717, or by
phone at 800-831-9146.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy
our shares of common stock nor shall there be any sale of securities, and shall not constitute
an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
This is good news for Diversified as the news that EIG has sold its final holding in the company, around 10% of shares outstanding, at a very small, 2% discount to the previous closing price. These shares had been overhanging the market and news that they have been placed, and have been cleared out can only help.
The fact that demand was ‘robust’ indicates that the market is signalling in a very positive way that following recent good news on the earnings front investors on both sides of the pond are still keen on DEC, in addition it should be noted that this is extremely accretive to shareholders.
Readers know that I am too, the company features in the recently updated Bucket List and with the shares up over 20% y/y and with my target price of 2,500p market confidence remains high and I clearly believe that there is a great deal of upside in Diversified shares.
Angus Energy
Angus has announced a hedging update.
· New hedges placed through to June 2027 at an average weighted price of approximately 101 pence per therm.
· Total hedged position of approximately 12.9 million therms through to June 2027.
· Aggregate hedge portfolio at an average weighted price of approximately 101 pence per therm.
· Hedges represent approximately 44% of the Company’s forecast gas production over the period.
The Company has successfully placed additional gas hedges covering the period April 2026 to June 2027, securing 7.745 million therms at an average weighted price of approximately 101 pence per therm. This includes early hedges placed at particularly strong prices, with April, May and June 2026 volumes secured at 141 pence, 135 pence and 127 pence per therm respectively.
When combined with the Company’s existing hedge portfolio, the total hedged position now stands at approximately 12.9 million therms at a weighted average price of approximately 101 pence per therm through to June 2027. This combined hedge position represents approximately 44% of the Company’s forecast gas production over the period.
The hedging programme provides significant fixed revenue visibility, underpinning the Company’s operating cost base and supporting predictable cash flow generation. Importantly, approximately half of forecast production remains unhedged, allowing the Company to retain meaningful exposure to potential upside in UK gas prices.
The Board believes this balanced hedging strategy strengthens the Company’s financial resilience while preserving the opportunity to benefit from favourable gas market conditions. The Company will continue to monitor market conditions and may add to its hedging portfolio where doing so enhances long-term shareholder value.
This looks like a very smart move to me, with current volatile market conditions, even I feel that taking advantage of such incredibly high gas prices, and going out a long way gives welcome protection to revenues through June 2027.
The company notes that it gives ‘significant fixed revenue visibility, underpinning the company’s operating cost base and supporting predictable cash flow generation’. This must give management a strong hand in ongoing discussions with regard to restructuring talks with Trafigura.
Having said that, those hedges over a long period accounts for only 44% of forecast production over the period and therefore the company can’t be accused of taking away any upside should prices rally sharply again in that timescale.
Sunda Energy
Sunda has announced that its wholly owned subsidiary SundaGas Banda Unipessoal, Lda, operator of the TL-SO-19-16 Production Sharing Contract, offshore Democratic Republic of Timor-Leste, has been awarded an Environmental Licence for the drilling of the Chuditch-2 appraisal well.
As announced by the Company on 10 February 2026, SundaGas submitted final Environmental Impact Statement (“EIS”) and Environmental Management Plan (“EMP”) documents earlier this year, following an extensive period of consultations with, and feedback from, upstream regulator Autoridade Nacional do Petróleo (“ANP”). Following endorsement of the EIS and EMP by ANP’s Evaluation Committee, award of the EL was approved by His Excellency the Minister of Petroleum and Mineral Resources, and the ‘Category A’ EL was issued to SundaGas by ANP on 9 March 2026. The EL is valid until 9 March 2028 and includes certain conditions, principally around submission of a waste management plan to ANP prior to operations and for a post-drilling environmental survey.
A copy of the EL along with final versions of the EIS and EMP will be made available on the Company’s website shortly.
Further updates regarding operational preparations will be provided in due course.
Dr Andy Butler, CEO, commented:
“Award of the Environmental Licence for Chuditch-2 is a major milestone in our drilling preparations, and the fruit of considerable survey works, studies, reviews and planning. I thank my colleagues and ANP for the strong collaborative efforts that went into preparing the extremely thorough EIS and EMP documents.”
An important moment for Sunda as the Environmental Licence for the Chuditch-2 appraisal well is awarded and gives more certainty about drilling it later in the year. Sunda has much on the go and 2026 looks like being a busy year for the company and its shareholders.
And finally…
Last night the Hammers beat the Bees on pens after extra time, helped by a Panenka from Ouattara which unsurprisingly failed and took his side out in ignominy. The Hammers get a home tie against Leeds next, in other ties Port Vale’s reward is a trip to Stamford Bridge which they might fancy while the Gooners visit the Saints and the big money tie sees Liverpool visiting the Noisy Neighbours.
And more importantly than this today sees the start of the Cheltenham festival, the Champion Hurdle and the Arkle are the features but every race is a massive one and will Ireland rule the roost again?
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. The writer may or may not hold investments in the companies under discussion.
