Poor Share PerformanceThis is the time to lock in Debt and push it out. The financing that ARC did was 550 million for 2.354% , this goes directly to the bottom line in saving and if your projects do not have better return than this, their not Projects.
Cross Road The industry is at a cross roads and energy company needs to find a reason for investors to participate, no more 5 year promises, no more double my production, and no more extended balance sheets.
Having long term debt, the cost of capital at these levels makes a lot of projects more attractive, and makes the paybacks a lot quicker.
So the only way the sediment will turn in OIL and GAS is when the companies start paying meaningful dividend and put
Moola in the Pockets of My Jeans. We have had decades of false promises and unsustainable development, and only the plays that are sustainable will get capital.
Production Growth is not Paramount, FCF is though.
- Balance Sheet, or cheap financing, or both.
- FCF
- Share Evaluation - (That is your currency) (Buy backs may be necassary)
- Dividends
- Decline Rate
- Sustainability
- Growth
Here is my list morning coffee list, maybe there is a better order.
ARC is either not telling the markets a compelling story they want to hear, or maybe 3% is not a meaningful divided. All this is in ARC control.
IMHO