RE:RE:RE:RE:RE:RE:RE:RE:RE:FFO says it all - based on Q3 Numbers - Its a Steal
How you evaluate a corporation is doing a good job, is that you have to look at the assets they have to work with.
Arc has Kakwa that produced 70% of its CF last quarter, and that is a great asset. However the gas assets are postage stamp in my opinion. In any case the ability to get proper market pricing is a corporate responsibility and key to the business strategy. (Not Operational)
If they don't get proper pricing, nothing else matters, because you are putting the business at a disadvantage and will never recognize the potential of the assets.
This is round 2 of major concerns regarding hedging + gas marketing. If they would of got the same realized price as say TOU, their major competator, ARX would of added 200 million in essentiall FCF, more than double their Q3 FCF.
It'a not operational, it is the strategic business management objectives.
IMHO
MHP