RE:RE:RE:RE:Who is listening the the Market at ARX?MyHoneyPot wrote: I am only interested in Kakwa, don't really like ARC original assets very much.
Is ARC going to be true to their former president and pay out 25-30 percent of Cash Flow to investors. Everything is up in the air with this new management team.
The CFO has 18 months experience, the CEO not much more.
A rookie team with the best assets in the industry, wanting to pursue full cycle projects and leave billions in plant and half cycle opportunities sitting idle. With the largest proven condensate reserve base in the Country.
They are costing share holders 100's of millions of dollars, in lost opportunity cost.
I am sure the hedging losses will be larger than the dividends paid out, ask the CFO about that he is responsible for Risk management as well as Investor relations, he should get a superman costume.
IMHO
To be fair, I really don't think the 2022 hedges will be that bad at all. As I've previously pointed out, I'm fairly sure the weighted avg price on those condy oil hedges next year will be somewhere around $60 to maybe even $65 potentially. So let's say 2022 is as robust as many are predicting and oil avgs $90 in 2022. That would cost: 100,000 boes pd of condy, * ~40% hedges, *365 = somewheres between $300 and maybe $400 mm. Per share that's like $0.50 for the entire year in lost cash flow potentially. I don't think anyone should let that affect their assessment of this company. There is always the off chance that those hedges won't be so far out of the money (though it's definitely not looking that way I will admit). To me, let's see what they confirm for the 2022 hedges, and what they start to communicate about hedges beyond next year, and then reassess their risk mgmt strategy and its effectiveness. Just thought I'd chime in here.