RE:MHP lives in Canada ( 60+ oil on average end of 2023)Probably the best summary I've read on SH for a few months.
Well put.
Arc stock should be $14 today, but "debt reduction" (when already have an impeccible balance sheet) is just "blah".
Boring Mgmt and Boring stock price as a result.
MyHoneyPot wrote: So that means i have a right to my own opinion, because diversity makes us better and if i continue to listen to the quality asset story with quality management, and see the lingering share price. The only vote that count is the share holders and based on ARC's current price, it totally agrees with me, so some of the posters need to get of their high horses.
Right now Oil-Condensate can be hedged out at an average of 64 dollars until the end of March 2022. That should be all the management has to say right there, they can hedge and plan for all their debt reduction targets, but they also should make hay well the prices support it, and this is the year to double down on short term liquids produciton, while the iron is hot.
You can hedge to 60 dollar U.S. oil until the end of 2023 (Dec) so you know exactly the risk you are taking and management wants to have a full hedge book, go for it.
So I am saying to be oportunistic, and put your capital where you can get the best immediate returns.
This is very simple, you have the best assets in the basin, i hope management can put forth a compelling go forward story based on the current economic enviroment and the tools at hand.
The stock is performing dismally and NO i won't accept a managment team that tells me they are idiots, that show me they are idiots, and are not responding to current market conditions. They should be telling us how they are going to provide real short term returns with those premier assets, and under utilized plant infastrucutre, and produce even more liquids and futher secure their leadership position as the #1 condensate producer in Canada.
What would you rather be when you grow up, the #1 Condensate liquids producer with the best cash flow and FCF in the Patch. Or a debt free company that admidtly do not have the investment opportunities that ARC has in the condensate liquids space. You can't let debt reduction cloud your vision of the economic opportunity before you at this moment.
IMHO