Arx's Hedge Position has improved a Lot.. (Breakout Q3)Another oil spike, and this time Arx is in a position to take advantage of high oil prices.
Arx oil/condy 83,500 Q2 results (63% of Arx Sales)
Tou oil/condy 42,500 Q2 results (32% of Tou Sales)
32% of TOU revenue comes from Oil/Condy 63% of Arx sales come from oil/condy, this looks
So 68% of TOU revenue comes from 496-43= 453,000 boe of gas production,
So 225,000 boe a day of gas production is equal to roughly 42,500 boe of oil/condensate. (TOU)
So ARX produced roughly 340,000 boe/day Q2
So 340,000 boe day - (42,000) boe condy + 225,000 boe gas = 523,000 boe/day (Napkin Caculation)
This is what ARX production looks like in terms of Gas equalivent if we assumed Arx had the same condensate production in place that TOU has, around 42,500 boe/day
(Replacing 225,000 boe/gas with 42,000 boe condy)
TOU total production was 495,918 boe/day in Q2.
Arc is going to trounce TOU in Q3, and likely the oil/condy number will increase from 63% of ARX sales to close to 70%.
Crude was $93 CANADIAN and Condensate $104 Canadian in Q2 (Arx Resources)
Oil prices have been higher in Q3 for July, August, and September.
Arx is going to beat TOU significantly in terms of Sales in Q3.
Arx current market cap 13.2 billion
TOU current market cap 23.9 billion
Look for a significant beat from Arx over TOU in Q3
IMHO