Seven Million Shares - 1% - 10-20 cents a share added valueA Company buyback of 7 million shares should equate to 1% of the stock and a 10 cents a share increase if you value the company at $10 dollars a share, and as 20 cent a share increase if you value the company at 20 dollars, we have analysts like BMO that have a price target of $21.85 per share like BMO (RANDY OLLENBERGER)
So a buyback of 70 million shares should add between 1-2 dollars per unit in value, with all things remaining as they are.
It we are getting a 4% dividend, and 10-20% share appreciation based on the current share value that is great. (Based on the buyback)
ARC SHares are work $20 dollars a share is my Thesis, minus the management discount.
Attachie in perspective, will cost shareholders 1-2 dollars a share until it produces meaningful FCF. (4-5 years from now)
So a great point was brought up here by shaleguy and my other oil executive friends have told me, north of Kakwa its starts getting sour and the costs start going up.
Last quarter even with under investment Kakwa was 53% or arc production 85% of their condensate and 81% of their NGL's this is where all the FCF is coming from, don't kid yourselfs.
ARC is a steal that these prices and i bought 5,000 more share this morning, The investor return is better with share buybacks than anything else they could do.
It sounds like Kakwa is going to get a big push in Q2 and they will send the stock soaring.
Today is a major buying opportunity.
IMHO