RE:ARX vs WCP 2023 Q4Love the post Bob.
Based on the ERF offer I would say you may be right about both being undervalued.
Of course the market must have seen that too and bosted their share prices (ARX slightly more).
Good insight 13 months ago and today but why the stumble in your faith in ARX in January?
With regards to WCP deserving a better premium for their liquids you have to take into account that they pay out 11% more than ARX to accomplish their over 8% div yield. It would be even more if ARX wasn't aggresively buying back shares. Is that the difference? Higher Div versus buybacks?
GLTY and all ARX BULLS
SideshowBob1 wrote: 13 months ago I posted these numbers and made this statement on this bullboard
Arc Q3 2022
Total debt: 1.54B
Market Cap: 9.54 B
Enterprise Value: 11.08B
EV/BOE = $32,394/BOE
WhiteCap Q3 2022
Total debt: 2.05B
Market Cap: 6.75B
Enterprise Value: 8.8B
EV/BOE = $64,245/BOE
If all BOE’s were equal Arx should be trading at an EV of 16.9B, market cap of 15.4B. Shave 1.4B of for being NG heavy. Give me a cap of 14B and Im happy. 46% upside from here. Price Target: $22.5. Still lower than RBC’s $26 target, but they are clearly out to lunch.
Fast forward to Today Feb 21 2024 after WCP released their Q4 Today Vs ARX's Q4 Arc Q4 2023 Total debt: 1.32B
Market Cap: 13.72B (Today)
Enterprise Value: 15.04B
EV/BOE = $41,177/BOE
Production/Day:
BoE: 351,954 boe/day (full year)
37% Liquids
WhiteCap Q4 2023
Total debt: 1.39B
Market Cap: 5.55B (Today)
Enterprise Value: 6.94B
EV/BOE = $44,344/BOE
Production/day:
BOE: 156,501/day (full year)
66% liquids
If that closing of the gap on EV/BOE by ARX doesn't make your head spin.
Questions of the day: does WCP's liquids ratios deserve a better premium than they currently do? And is ARX fully/fairly valued?? Im leaning to a yes on both. PROPS to the ARX team they have absolutely killed it.