ARC Resources Ltd T.ARX

Pursuit of Folly

[MyHoneyPot]

ARC 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

[Grandcentral]

MHP, you constantly talk about being so unhappy. Are you selling? If not, why not?

[Mtklip]

insiders bought today, I'd trust them over you.

[Grandcentral]

I bought also. Just trying to understand why MHP doesn't sell and disappear if he is so unhappy. GLTA

[MyHoneyPot]

Because i can't believe the stupidity that exists in management and others that think it is intelligent to invest in full cycle dry gas when you have the very best montney play with 46 dollar a boe revenue.  I have never seen more ignorance.  IMHO

[Grandcentral]

This is why you are not selling and choose to hold??? BS - that's not logical or reasonable at all. I am buying beacause 3rd quarter earnings are going to be even better yet again. 4th quarter will be outstanding - and 2022 with new hedging, we will be at cruising altitude. The Ex dividend is September 29th, and if the stock pulse cycle continues as it has, we will be at a new 52week

[Trapped]

His reason for staying in a stock that he so clearly hates makes no sense at all. I've said it before: If an investment no longer meets your selection criteria, you sell and move on to greener pastures. Period. Full stop. None of these whiners are influencing management by trying to be armchair quarterbacks. And it's beyond annoying. For me, this is one of a dozen holdings in a non