Condy Pricing In the futures market over the next 8 months the average price for Condy is WTI - 75 cents.
The Canadian dollar is struggling of late and is around the 80 cent range.
So if oil is 75 U.S. and we discount condy by $1.00 boe = $92.50 Canadian a BOE.
Well we all know what is the largest reserve and most polific Condensate Play in Canada, it is XOXOXO , i am not allow to say its name on this board.
Gas prices are amazing and strong as well, and with gas prices over 4 dollars, it means you finally get paid something for producing gas, not much but it is getting better as a marginal business strategy.
According to CIBC these are the priorites companies should be pursuing
Capital Discipline - Don't pursue full cycle projects when you have the very best half cycle economics projects sitting in your lap.
Debt Reduction - Playing of debt if you have a balance sheet issue, Arc says they will be there in Q3 of 2021, it believe they are already there right now.
Returning Capital to Shareholders - This is either share buybacks or increased dividends. Managements pursuit of Attachie does not align with be best minds in investment advice.
ARC shares are trading for 1/2 price because of poor management, and the inability to communicate the value of ARC and produce a compelling plan. They have destroyed the reputation of the Kakwa asset they just purchased, and slowed down its development at the peek of its economic viability. The want to create a money pit at attachie and throw dollars without a vialble plan to reward share holders any time soon.
ARC needs new management.
IMHO