90% of the Disappointment is in the PresentationWhen you writing down hedging losses against forward strip for the year, and you create a loss, it is hard for common investors to understand earnings. That why companies like TOU don't put earning on the first page of their press release.
They talk about CF and FCF, I think ARX actually delivered in line with my expectations. However like alway their communications is dismal.
Royalities will get up, because payout of wells is accelerating, and the province is going to get higher royalities sooner, because of the commodity prices. A good Finance department could spin it in a positive way. They are going to earn higher ROI on the wells.
Production is Flat, because none of the original ARX project area's can be invested in because of Treaty8 issues. ARX has been sitting on their hands for a year telling us about the great investment opportunities are Sunrise and Attachie, that have not materialized, while 1/2 cycle production at Kakwa has been idle?
They have been looking for one of these for 6 months now, it may be impacting their plans going forward.
IMHO