ARC Investor Update
I am not a shareholder of ARC, so I do not know too much about the comapny.
Yesterday, they had an investor update on-line for about an hour, and I think the audience (in person) stayed for another hour or two.
ARX announced a new 5-year plan which was very well received by the market. I am not saying ARX and CR are in the same league but there is something to learn from ARX.
When CR annnounced their 4-year plan, it was essentially telling shareholders how much they need to spend over 4 years and what the annual production will be. That scared people right there as we saw with the stock price.
ARX announced their plan in person, showing their enthousiasm and the ability to answer questions to people who attended in person.
They talked about:
- How good their drilling activities have been
- Free fund flow per year
- How many years of ressources they have at various locations
- Historical return on capital, and expected annual figures going forward
- Future free fund flows at various commodity prices
- Free fund flow per share growth rate in the future
- Future dividends and share buy back
Essentially the difference between ARX and Crew's announcement is
1- ARX is in person, allowing people to see the enthusiam and ask question
2- ARX is not scared at sharing future figures even if we know they will be wrong
3- ARX package everything together. A lot of the same information is available for CR, but you have to look at different places or do some calculations.
I think there is a lesson to learn here.