RE:RE:RE:RE:RE:$20 targetYup if you go back to the 2020 YE for ARX they have gains on hedging and $750 million in net debt.
The takeover was an all share transaction so VII added all that extra debt that came with bad hedging to secure it and the only thing ARX management did was renogiate that debt into those senior notes due in 2026 and 2031 which looks like a brilliant move today.
If you have a problem with this management you're a fool. Sell and be gone. They saved VII.
The company is in great shape today and that is mostly on ARX management.
A lot of us longterm ARX shareholders are double plus with a 4% yield and heading for a triple..
Management is A OK with us.
GLTA ARX BULLS
GunnerG wrote: Bad hedges plus other big negatives all part of the "merge" with VII
Got VII for a good price so older Arc shareholders not to concerned, some from the other side can only whine.
All part of the merge, no worries.
MyHoneyPot wrote: Last year ARX has hedges that cost over 1.2 billion dollars. Imagine if ARX had an additional 1.2 billion in FCF, how would that of impacted the stock. Roughly $2 dollars a share lost in hedging.
Other positives going forward, is the balance sheet is sparkling clean, really no debt but long term debt at 2-3 percent.
Kakwa is poised to perform, it just got a huge reserve upgrade, and will be producing between 190-200 thousand boe a day in 2023. Kakwa is the highest netback boe in Arx portfolio.
$30 for ARX is very conservative.
Kakwa by itself is worth more than 10 billion dollars.
IMHO