RE:RE:RE:RE:RE:RE:Balance Sheet Issues make ARC uncompetitive (think of the companies you could of bought with cash for 2 billion dollars?) What they appear to be buying is VII with their own cash!
They put it on the layaway plan.
When they have bought back all of the additional post merger shares that is exactly what they will have done.
You lack vision.
I have to admit that I did not see them being able to re-work their cap-ex budget to be able to sanction Attachie Phase 1 with only an additional $100 million added to the budget. l thought it would add 700 million to cap-ex and take it to 2.5 billion. I was wrong. Now they can buyback shares and get the share count downn to 550 million while building out Attachie and pay a higher dividend. They might even be able to reduce the debt more. Come 2024 when the last of the hedges roll off with higher forecasted oil and gas prices there is no telling what they can do.
GLTA ARX BULLS
MyHoneyPot wrote: The share buyback is a wasted effort and wasted cash, (think of the companies you could of bought with cash for 2 billion dollars?)
Fixing the risk management may be associated with a little cash but ultimately the cash remains on the balance sheet and does not evaporated into thin air when they cancel the shares. A share buyback will not be effective in driving a rerating as long as these hedging losses persist.
(They have already spent 2 billion dollars proving that )
The balance sheet is shewing arc results, and lowering their performance by every metric, better to fix it now and the share price appreciate is insured. Their efforts to get a stock rerating are futile while the balance sheet is so broken.
The operational excellence that exists in arc is be compromised by the hedges and effective the CFO with bad hedges is undermining the good operational work ARX is doing.
The board should step up and provide oversight to this dismal hedging strategy.
IMHO