RE:RE:RE:RE:RE:RE:RE:RE:ARC Q3 2023 vs Q3 2021The big story is that Kakwa condensate % is taking a big hit in 2023 - from 39% in Q3 2022 to 33% in Q3 2023 despite spending $1.1B there in 2023. $1.1B could not maintain the 69.845 condensate production of Q3 2022 as it fell to 66,846 in Q3 2023. Condensate wise, that is some horrendous capital efficiency.
This is also why the Kakwa capex is being cut by half - they're strictly focused on the locations that have a higher % of condensate which they believe they have 15 years' worth. I give them credit for failing fast - realizing the condensate is simply not there at these other Kakwa locations and shifting the capex to areas with better capital efficiency. It also explains Attachie IMO so I'd have to disagree with you MHP on Attachie being a pet project - they're scrambling so to speak to add condensate (or is it oil?) rich locations.
Unfortunately that means the condensate % will probably continue going down and they will become more dependent on natgas at a time when the commodity is at a historical low. The LNG contracts will definitely help down the road and I commend them for that.
This is also why quint and co. are forced to resort to attacking any shareholders with a negative comment on ARX - the ad hominem approach against "sub" shareholders - as the condensate is simply not there in these other Kakwa locations. Even though in the overall it doesn't help the stock whatsoever.