Andrew Carreon, founder of Emeth Value, discusses his thesis on Diversified Energy (DEC; trades in London). Key points include how the company can get such good deals on acquisitions, if the company has an edge in handling asset retirement obligations, and why the company pays such a big dividend.

My bull thesis on DEC: https://yetanothervalueblog.substack.com/p/tegus-sponsored-deep-dive-4-natural-198
Andrew's first podcast appearance on BSM: https://twitter.com/AndrewRangeley/status/1402967314233008129?s=20&t=8N1sKfcgkx0mbRjNkJxL6w
Bloomberg article on DEC: https://www.bloomberg.com/news/articles/2021-10-20/gas-producer-diversified-energy-said-emissions-fell-now-it-says-they-didn-t

Chapters
0:00 Intro
2:15 DEC overview
9:45 How is DEC getting such good deals from sophisticated sellers
17:10 Hs the current energy environment changed the ESG market for energy?
19:30 DEC's route density model and acquisition synergies
27:30 Asset Retirement Obligations (ARO)
43:55 Even more on AROs
54:00 Is DEC just kicking the ARO can down the road?
58:20 Discussing the "Bloomberg" article
1:06:40 Does DEC have a regulatory edge in handling AROs?
1:09:10 Why is DEC paying out a big dividend instead of buying back shares?
1:15:45 Comparing the opportunity cost of DEC to BSM