RE:RE:RE:Wait a year to fix hedges?Don't tell me how to manage my investments!
The CFO of ARX is doing a disservice to the operational teams of the company and distroying what otherwise would be consider a fine tuned machine. All the shareholders of ARX, and Nine Points to boot should be pissed with the way the balance sheet is being managed.
Everyone sees the potential in the stock, liabilities are not simply what you owe the bank, they also are the fiscal instruments you put in place.
However ARX greatest Liability is Management inability to fix their mistakes, everyone make mistakes even me, but i am alway willing to do the right thing, the manage ego is too big, and they don't have the experience to back it up.
This impacts all the operating metrics of the company. Imagine how hard working people feel when they do their best and with a stroke of a pen the CFO undoes all the good operational efforts of the company with a failed risk management strategy. Then in desperation trys to buy back as many shares as possible robbing shareholders of dividends, special dividends, and share appreciation. In desperation resuting in a futile effort.
ARX can't compete with healthy companies like TOU, because the CFO is working to undermine the operation excellence of the company by destroying all operational metrics, FFO, FCF, etc.
The buyback after squandering 2 billion dollars has failed to get a rerating.The money evaporates off the speadsheet and the enterpise shrinks because of Liabilites on the balance sheet. 2 years of risk management purgatory is that not enough for shareholders?
The root cause of this mess is their risk management, they should of fixed the gas hedges when gas was under 2 dollars and the oil last week on the oil pullback. If gas recovers to higher prices ARX will pay dearly with more of the same massive hedging loss.
Its a brain dead approach to buy back shares with this liability in place, hampering the ability to recognize the quality of your resource and the operation excellence in place at the company.
It is really risk management mismanagement.
IMHO