ARX is simply to cheap!Last quarter ARX had roughly 603 million in FCF, or a $1 per share!
A lot of the capex is really investment in plant, which wll result in future production gains.
They invested in Attachie with long order items
They invested in Sunrise with plant Expansion
They invested in Kakwa, and at year end had more than 25 DUCS ready for production gains
They bought back 15% of the company shares
They have zero bank debt, and only long term 2-3% debt left.
Free funds flow for 2022 of $3.42 a share, means they are trading just a little over 4* Free Funds Flow.
My guess is that we will see Kakwa at about 190,000 - 195,000 boe/day next quarter, with the low gas prices ARX will make some significant dough with liquids, expecially condensate that is trading at a real premium.
Hedging is the story and next time oil spike up $100 WTI, expect ARX to spike with it even more, now we have companies that have zero drawn on their bank lines, and don't have to listen to the banks any more.
I was buying more on Friday, a great opportunity to buy more.
IMHO