3 Billion Dollar Blunder (Good Job Arx Management) Boom ChaARX Management Own a 3 billion dollars hedging blunder, hedging at the bottom of the cycle, and at the same time putting hedges in place for 3 years.
Really you could just add 3 billion in debt to ARC balance sheet and it essentially has the same impact.
2021 1.5 billion in hedge losses
2022 1.0 billion plus (80% of 2021 oil, but the losses per boe could be much higher)
2023 .5 billion still have significant oil that was hedged at the bottom of the market.
This is $4 dollars a share, and management has a big hurdle to overcome here.
Their plan is really dumb dumb dumb.
IMHO