RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:5% Production Increase based on share buybacks (YTD 2024)ARX is not investable the entire company performance hindges on the price that they can sell their products for. Arx had a realized gas price of $1.78 in Q3, while TOU average gas price was $3.19.
Its as simple as that, ARX has the whole company running on a fast tread mill, with not a lot of output.
So the Company have a disminished value because the way they are managed. Poor gas marketing/risk management has single handedly evaporated likely as much as 200 million dollars of FCF from the company in a single 3rd quarter. It a repeat of the hedging disaster they imposed on themselves a few years ago that was the largest risk management loss in Canadian history.
ARX is likely one of the better operators, but they continue to find ways to evaporate the return into thin air and not realize them. They need a change at the top.
IMHO
MHP