Hard to Believe - NEW Management Required
Is it impossible to believe that a Company would turn it back on it Number #1 Play area that is generating 60% of their revenue, and has close to 2 billion dollars of infastructure working, managed and in place, to pursue projects in a supply chain challenged enviroment, that are totally green field in nature, at a time when energy prices approach 120 WTI, and gas was over $6 dollars?
There is no way that ARX gets better returns from backing back they shares, then investing the capital required to drill enough wells to add 40,000 plus boe day at Kakwa, management in not giving shareholders the facts. The board should cleanout the old ARX management teams and put a real team in place.
If Kakwa produced at it historical levels, it would add 15% to ARX Revenue, and likely add 1.5 billion to ARX's market cap? So how are those share buy backs working for them, they likely have spent in excess of 2 billion in share buybacks and we just recently paid a lot more for the share buybacks then the shares are currently trading for. The are evaporating share holder cash into the thin air.
Hedges (2 billion loss), Share buybacks (2 billion plus), ARX management knows how to make capital evaporate from the balance sheet. Not ramping up production at Kakwa is a irresponsible of management, and add another (billion) in opportunity loss they have imposed on shareholders.
This management team has does a disservice to shareholders.
IMHO