AIM:DGOC

Stock Analysis Report

Diversified Gas & Oil

Executive Summary

Diversified Gas & Oil PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States.

Snowflake

Fundamentals

Solid track record, good value and pays a dividend.

Share Price & News

How has Diversified Gas & Oil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DGOC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

DGOC

-1.2%

GB Oil and Gas

-0.2%

GB Market


1 Year Return

-4.6%

DGOC

3.1%

GB Oil and Gas

4.7%

GB Market

Return vs Industry: DGOC underperformed the UK Oil and Gas industry which returned 3.1% over the past year.

Return vs Market: DGOC underperformed the UK Market which returned 4.7% over the past year.


Shareholder returns

DGOCIndustryMarket
7 Day-0.5%-1.2%-0.2%
30 Day-7.2%0.5%0.8%
90 Day1.5%5.3%3.7%
1 Year4.5%-4.6%8.3%3.1%10.1%4.7%
3 Yearn/a39.2%21.3%20.9%5.6%
5 Yearn/a39.6%13.6%32.3%2.2%

Price Volatility Vs. Market

How volatile is Diversified Gas & Oil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Diversified Gas & Oil undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DGOC (£1.03) is trading below our estimate of fair value (£3.68)

Significantly Below Fair Value: DGOC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DGOC is good value based on its PE Ratio (3.1x) compared to the Oil and Gas industry average (7.2x).

PE vs Market: DGOC is good value based on its PE Ratio (3.1x) compared to the UK market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: DGOC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DGOC is overvalued based on its PB Ratio (0.9x) compared to the GB Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Diversified Gas & Oil forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGOC's earnings are forecast to decline over the next 3 years (-14.3% per year).

Earnings vs Market: DGOC's earnings are forecast to decline over the next 3 years (-14.3% per year).

High Growth Earnings: DGOC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DGOC's revenue (2.9% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: DGOC's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DGOC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Diversified Gas & Oil performed over the past 5 years?

79.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DGOC has large one-off items impacting its financial results.

Growing Profit Margin: DGOC's current net profit margins (51.8%) are higher than last year (31.9%).


Past Earnings Growth Analysis

Earnings Trend: DGOC's earnings have grown significantly by 79.1% per year over the past 5 years.

Accelerating Growth: DGOC's earnings growth over the past year (745.2%) exceeds its 5-year average (79.1% per year).

Earnings vs Industry: DGOC earnings growth over the past year (745.2%) exceeded the Oil and Gas industry 24.7%.


Return on Equity

High ROE: DGOC's Return on Equity (24.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Diversified Gas & Oil's financial position?


Financial Position Analysis

Short Term Liabilities: DGOC's short term assets ($134.3M) exceeds its short term liabilities ($58.9M)

Long Term Liabilities: DGOC's short term assets ($134.3M) do not cover its long term liabilities (896.3M)


Debt to Equity History and Analysis

Debt Level: DGOC's debt to equity ratio (62.4%) is considered high.

Reducing Debt: Insufficient data to determine if DGOC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: DGOC's debt is well covered by operating cash flow (34.7%).

Interest Coverage: DGOC's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

Inventory Level: DGOC has a high level of physical assets or inventory.

Debt Coverage by Assets: DGOC's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Diversified Gas & Oil's current dividend yield, its reliability and sustainability?

10.60%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Diversified Gas & Oil before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company10.6%marketbottom25%2.0%markettop25%5.3%industryaverage5.3%forecastin3Years10.9%

Current dividend yield vs market & industry

Notable Dividend: DGOC's dividend (10.6%) is higher than the bottom 25% of dividend payers in the UK market (1.97%).

High Dividend: DGOC's dividend (10.6%) is in the top 25% of dividend payers in the UK market (5.33%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DGOC has been paying a dividend for less than 10 years.

Growing Dividend: DGOC's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.6%), DGOC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DGOC's dividends in 3 years are forecast to be covered by earnings (78.7% payout ratio).


Next Steps

Management

What is the CEO of Diversified Gas & Oil's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Rusty Hutson (50yo)

0yrs

Tenure

US$635,000

Compensation

Mr. Robert Russell Hutson, Jr., also known as Rusty, is Co-Founder of Diversified Gas & Oil PLC. Mr. Hutson was Chief Executive Officer at Atlas Resources, L.L.C. (also known as New MGP) since June 30, 201 ...


CEO Compensation Analysis

Compensation vs Market: Rusty's total compensation ($USD635.00K) is below average for companies of similar size in the UK market ($USD1.15M).

Compensation vs Earnings: Rusty's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.0yrs

Average Tenure

51yo

Average Age

Experienced Management: DGOC's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

55yo

Average Age

Experienced Board: DGOC's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$72,32614 Aug 19
David Johnson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares70,000
Max PriceUS$1.03
BuyUS$14,70013 Aug 19
Bradley Gray
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares15,000
Max PriceUS$0.98
BuyUS$77,70017 Jun 19
David Turner
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares70,000
Max PriceUS$1.11
BuyUS$106,48706 Jun 19
Robert Hutson
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares100,000
Max PriceUS$1.11
BuyUS$106,48706 Jun 19
Robert Post
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares100,000
Max PriceUS$1.11
BuyUS$16,12506 Jun 19
Martin Thomas
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares15,000
Max PriceUS$1.08
BuyUS$25,78017 May 19
David Johnson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares20,000
Max PriceUS$1.29
BuyUS$16,95029 Jan 19
Bradley Gray
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares15,000
Max PriceUS$1.13
BuyUS$219,56028 Jan 19
Robert Post
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares200,000
Max PriceUS$1.10
BuyUS$274,45028 Jan 19
Robert Hutson
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares250,000
Max PriceUS$1.10
BuyUS$10,96828 Jan 19
David Johnson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares10,000
Max PriceUS$1.10
BuyUS$11,00028 Jan 19
Martin Thomas
EntityIndividual
Role
Lead Director
Senior Independent Non-Executive Director
Shares10,000
Max PriceUS$1.10

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 170.5%.


Management Team

  • Brad Gray (51yo)

    Executive VP

    • Tenure: 3.1yrs
    • Compensation: US$525.00k
  • Jack Crook (60yo)

    Senior Vice President of Environmental

    • Tenure: 2.4yrs
  • Dora Silvis

    Executive Vice President

    • Tenure: 1.6yrs
  • Rusty Hutson (50yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$635.00k
  • Bob Cayton (57yo)

    Senior Vice President of Operations

    • Tenure: 2.4yrs
  • Eric Williams (40yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
  • Michael Garrett

    VP of Accounting & Controller

    • Tenure: 1.6yrs
  • David Myers

    Chief Information Officer

    • Tenure: 1.3yrs
  • Bill Smith

    Vice President of Human Resources

    • Tenure: 1.3yrs
  • Teresa Odom

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Sandy Stash (60yo)

    Additional Independent Non-executive Director

    • Tenure: 0.08yrs
  • Brad Gray (51yo)

    Executive VP

    • Tenure: 3.1yrs
    • Compensation: US$525.00k
  • David Turner (55yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Martin Thomas (55yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: US$63.00k
  • Rusty Hutson (50yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$635.00k
  • Rusty Post (62yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: US$363.00k
  • David Johnson (59yo)

    Non-Executive Chairman

    • Tenure: 0.6yrs
    • Compensation: US$59.00k

Company Information

Diversified Gas & Oil PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Diversified Gas & Oil PLC
  • Ticker: DGOC
  • Exchange: AIM
  • Founded: 2001
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£679.570m
  • Shares outstanding: 659.78m
  • Website: https://www.dgoc.com

Number of Employees


Location

  • Diversified Gas & Oil PLC
  • 1800 Corporate Drive
  • Birmingham
  • Alabama
  • 35242
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DGOCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPFeb 2017
DG2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2017
DGAO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2017

Biography

Diversified Gas & Oil PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company produces natural gas, nat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 22:17
End of Day Share Price2019/11/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.