RE:RE:MHP exited ARX & entered TOU at the wrong time..I agree, I think TOU is a very well run company and any dip in stock price, is temporary.
TOU isn't dependent upon weather for FCF, Mike Rose controls the weather.
Good to own a few names though, ARX & TOU each have their strengths. ARX mgmt is atrocious, but the asset quality is very high. $500M in FCF in the quarter, even with abysmal hedges. The stock is very undervalued and lots of upside, but you pay a premium for TOU and we will reap the rewards of paying a premium.
Price is what you pay, value is what you get.
I own ARX & TOU, why not.
MyHoneyPot wrote: I had a lot of ARX and i sold it all, and actually bought back in at $10.63, i am pissed off with Arx Management. You would have never of known it. (Arx still has 2 billion in debt, and a share float over 700 million shares, it trades terrible)
I look at TOU like this, this stock is not going to crater because they will just buy back shares, and there really is not that many share out there for a company producing my guess over 500,000 boe day. I might just buy more as well.
Gas cratering, wait until next week and the weather will be cold and the dynamics will change.
TOU has doubled their liquids production in the last year, and is going to have a blow out quater. Gundy aheads of schedule and they decided just to drill 20 or so extra wells.
I am here because while other companies are trying to fix their share float, play down debt, build a 5 year plan for production growth, TOU has already done that and is on the next leg of expansion and has to grapple with what does a company with no debt obligations, a very low share count and spinning out 2 billion a year in FCF.
They get opportunistic, and if you thought Mike Rose was opportunistic over the past few years while he doubled the size of TOU, wait and see what happens with 2 billion in FCF.
I know why your hear Cheadle12, you want TOU to buy Crew energy, that your plan.
I think TOU is an investment i don't have to worry about, unlike ARX.
IMHO