ARC Resources Ltd T.ARX

ARX Staff Compensation = Shareholders Dividends

[MyHoneyPot]

ARC's first quarter 2022 G&A expense of $72 million ($0.10 per share)(1) increased by $26 million from the fourth quarter of 2021.

The increase in G&A expense primarily reflects the increase in the fair value of the Company's share-based compensation plans due to ARC's common share price appreciating by 46 per cent since December 31, 2021

You can see why management has not invested any of their own money is share purchases they really don't have to. 

Also ARX cashflow would of been 60% higher if it were not for the dismal hedging losses.

I think if oil hits $40 dollars a boe, you will see ARC management selling shares at $3 dollars to prop up the balance sheet. Stupid to buy back shares now, they missed their opportunity.

They should just keep sitting on their hands forevery and keeping produciton flat, it looks like management is well rewarded for doing nothing. 

IMHO

[Quintessential1]

Up 80% since last year and a now 3% yield.  I am pretty sure I am the one that is being well rewarded for doing nothing. GLTA Longs

[sirmevl]

Agreed Hedge losses suck but can we not speak about this glass as half full?  60% Cashflow increase when these hedges shed will result in a 2 bagger i would guess.  Si MHP i 100% agree this stocks gonna rocket  when the hedges shed this year 

[Sunsurfer12]

Why would ARX rocket in another 7 months?  We all know theres ~ $750m in cashflow impact for hedges this year..youre saying a $11bn company will go to $22bn because they will have paid of a $750m hedging mistake? In that case we should be trading close to a double right now.

[Rileym7833]

In about a years time when the hedges roll off with record prices and we have some high prices being potentially locked in, we may command a higher PE ratio than the unhedged competitors. I also wonder about further acquisitions or merging with unhedged producers once kakwa and the other plays have been optimized. Hedging can be a good thing and scaling up can expand valuations on existing

[MyHoneyPot]

Your exactly right, if people saw the Cashflow potential of ARX it would double the share price.  Think of it this way, they lost 250 million in hedges and they still had 410 million in FCF. If they had 660 million dollars that is a more FCF than TOU which has a market cap of 23 billion dollars. More that twice the market cap of ARX. This is why I said previouly if they bought back their

[Sunsurfer12]

Get what youre saying but think of it a bit differently... The hedges are already baked in..as in debt on the BS. FCF is the cashflow less capex and dividends..but not debt repayment So..were already at $660m FCF..were just paying the hedges off over time out of FCF.. Paying off the hedges sooner does not change FCF or net debt...so why do it?