RE:RE:RE:RE:RE:RE:5% Production Increase based on share buybacks (YTD 2024)
Arx stock is amout twice the cost of VET and Vet has also acheived the same debt target.
1: So VET FFO is almost double that of ARX, so with every share Vet buys back they get 4X times the impact on FFO as ARX does and their share are half the price.
2. So lets talke FCF Vet FCF is greater than ARX FCF and VET has roughly 1/4 of the shares ARX has, so for every share VET buys back they get almost 4X the FCF that buying one share of ARX would get for almost twice the cost.
3: Lets talk dividend Vet dividend it 22% higher than ARC so they get a better reduction per dollar spend on buybacks in terms of reducing dividends
Put it bluntly ARX looks like poor value when compared to VET, especilly from the buyback perspecitve.
MHP
IMHO