Next 10 Years Made in the Shade?
Making an investment decision that would require high commondy prices, and healthy markets for the next 10 years. Given the current cost of capital, is lower risk than investing in your 1/2 cycle production and returning all the capital to the balance sheet in 90 days?
Kakwa is ARX's most prolific play area with the majority of the Companies reserves.
Share Buybacks
If you comfortable exposing shareholders to more risk, and no return of the deployed capital for 10 years.
Clearly share buybacks are exposing shareholders to more risk, than adding production where you get all you capital back in less than 90 days.
I think ARC shareholders should consider they have already paid up to the eyeballs in Risk Management, at a cost of will have a 2 year cost of over 2.5 billion dollars representing somewhere in the neighborhood of 4 dollars FCF a share. ( Expensive )
We really don't need any more risk layered on by Management, Arx has the very best play in the entire basin that pays back your investment in less than 90 days to exploit. They need to get off their hands and start doing their jobs.
IMHO