Pursuit of FollyARC management is engaged in a pursuit of Folly, the project that they are investing Capital in will not return a dime in FCF for years.
Terry and Bibby objectives for the company are so small they are rounding errors, that is why TOU is 10X the company ARC is, they have 10X the vision. With ARC stock floundering management can not come up with any better idea's then to invest in a dry gas plant in sunrise, that will take years to pay back. Or add 10 MMcf of sour gas processing at Dawson, is that even worth mentioning in a share holders update, only if you are desparate for news.
If they would of invested the 80 million dollars capex to Kakwa, wells that pay back in 3 months, and Kakwa wells are a place where every boe of production returns twice what they get at sunrise it would look like this.
80 million dollars = 12 wells
12 wells add 24,000 boe/day for 3 months, generate =100 million dollars of Cash Flow, so if the well have IP90 of 1600 boe a day, cash flow of 80 million comes back in 3 months. I am ignoring OP costs here, but you get the idea. The well is paid for and all the infastructure is already in place half cycle.
You just added 100 million dollars to quaterly cash flow with counters those terrible hedging losses that BIBBY put in place.
ARC management need to wake up and quit their pursuits of dry gas with full cycle capital, and figure out where they will get the best returns for the shareholders.
IMHO