RE:RE:RE:RE:The NEW FB group just created for ARC Rsources investors The Q1 results were such a mess with the two companies coming together it wasn't apparent. I don't think the hedges were in place at that time. You can't find a Q1 seven generations stand alone report.
In Q2 results i found this little tidbit for information.
ARC's risk management program reduces volatility in funds from operations to support ARC's dividend, capital program, and deleveraging plan. For the balance of 2021, ARC has hedged approximately 50 per cent of both its expected crude oil and condensate and natural gas production at levels that generate profitable rates of return.
Then I read futher and found this additional information.
In the second quarter of 2021, ARC recognized a net loss of $123.0 million ($0.17 per share), an increased loss of $79.5 million from ARC's second quarter 2020 net loss of $43.5 million ($0.12 per share). The increase in net loss is primarily due to an increased loss on risk management contracts of $442.9 million
Now go to this video at about the 10 minute mark as they pat themselves on the back for putting in place a lot of risk management at the bottom of the cycle at the time of the merger. This is where they spilled the beans regarding the hedging and justified it to themselves. It sounds like the put the hedges all on at the same time when they merged, that is why they are all of the same value for years into the future.
https://www.arcresources.com/news-and-features/news/videos/arc-resources-q2-2021-review
Since then i simply took the infomation as i found it, on ARC website, it is in the september presentation and i reviewed the mess they made. I had purchase a lot of share prior to the merger at lower prices.
That is how this hedging castastophre came to light and after futher analysis, i came to realize how big a mistake management made. At the prices for commodity go higher it simply becomes more costly, and they pushed it all the way out to 2024. So it looks like they did it at the time of the merger, very low prices, and i don't think it was disclosed until the Q2 results in August.
At least that is how i stumbled onto this mess.
IMHO