60% of your Company Disapproves of ManagementIt sounds like a bunch of genius management that would buy the #1 Condensate play in the country, (Today Condensate is trading close to 90 dollars Canadian).
A play that had a budget of 1.25 billion in 2019, and a play that had 1.1 billion in 2020 and slash the capital budget to 525 million in 2021. In the highest liquids price environment, we have had for years. Really smart guys, they can make better returns banking 2% interest, a real vote of confidence for investors.
Then put forward and objective, to pursue a 2 year plus Attachie full cycle money pit project, that is laden with plant, first nation, environmental, and resource risks. Does that not look like just the most brilliant plan in the world?
Investors were excited about the Kakwa resource opportunity, and they represent more than 60 percent of ARC as a company. However, the company can not say anything good about this acquisition, what wrong with management thinking?
While ARC management pursues dry gas, full cycle capex projects, the jewel of the Montney, Kakwa is an untapped, not understood, and with a uncertain future. No wonder investors are bailing on the management team wandering in the wilderness and investors are heading for the hills.
IMHO