RE:RE:RE:Shareholders looking for Dividends ARC is not your StockThere is no piggy bank sitting on a dresser. There is no cash sitting in coffers. Arc is in debt.
I am not sure where you get 2% from but it looks more like 33% to me.
Arc's management is delivering a balance of share buybacks which bolsters the share price (I am sure they are buying back today too and the share price is up 95% this year). Delivering increasing value to shareholders( an increase of 52% dividend this year) and simultaneously decreasing debt which will allow them to service the debt cheaper (especially with the prospect of increasing interest rates) and allow them to continure to reduce hedges as it is their creditors that force them to derisk their production because of their large debt level.
I invested in Arc resources not you. I'm going to dance with the one that brought me.
But by all means you continue to buy the dips.
GLTA longs
MyHoneyPot wrote: Not Realy, in enviroment where you debt costs are so low it makes no sense to me to Pay off 2% debt.
The FEDS are talking about 2% interest rates, i think it is just talk, but their will be a rate increase is my guess
The issue here is that it is healthy and resonable leverage to have some debt on your balance sheet, because we are investing for returns, we should not be a piggy bank that is sitting on our dresser. Some amount of leverage should exist in the stock. If ARC can't invest 2% money and make money we need new management.
TOU esentially has zero debt and income from Topaz, they are smarter than everyone else, and that is all i can say. They know how to create values in a variety of way, and have way more smarts and business savvy that most companies.
Right now ARX their debt level with current commodity prices equal to FCF and the are likely trading at .5 debt to CF, these numbers are just off the top of my head. However in that range.
Their risk management costs should be added onto their debt as it is a liability for the company going forward, and reduces the value of their production. However that should get better for ARX in 2022 and provide even more strength to the balance sheet.
I think a balanced approach 50% capital/Debt (full cycle capital, and debt buy down) - 50% share holder dividends ($1 dollar a share dividends)
The buyback is a waste of money and both companies individually did not have to many shares before they merged. Only oportunisitic buyback on days like today should be in place.
IMHO