TOU verses ARC - I need a TOU Opinion
I have done my analysis and using q1 numbers and the ARC post merger forecast, i have ARC generating more than 20 percent higher cash flow then TOU, depending on what numbers you use for oil. At $75 dollar oil i have it generating 27% more.
ARC generates 69 percent of its revenue from liquids, 60 percent from condensate and oil .
ARC will have at 20% more CF it can carry 20% more debt.(hedges ignored)
If ARC share price would increase 70% it would only then receive the same relative market evaluation as TOU. (ARC = 17 dollars)
Why is this happening I ask respectfully.
IMHO