ARC Resources Ltd T.ARX

FCF i like pioneer's approach

[MyHoneyPot]

Establish a number to sustain production at current level, then 3/4 of the FCF goes back to the share holders and 1/4 goes to share buy backs, debt reduction, and growth. 

When you can borrow 400 million at 2.3% there is no reason to pay off the Debt.

Look at the merger- 45 million reduced in corporate costs, i think the more they cut corporate costs the better their bonus will be, with the ultimate prize being a golden handshake.

1.5 a share dividend should be the objective in my mind, and forget about growing production for the time being.

IMHO

[powerlunchmoney]

Paying off the debt is paramount (no pun intended) to paying back the shareholders. There is no reason to carry 2 billion in debt when they can bring it down to half that easily by the end of the year. Give it a couple of quarters and we'll see that juicy divvy come back again. 

[MyHoneyPot]

I disagree that paying down debt, that is triple BBB investment grade and cost you 2.34 percent over 5 years is a good use of cash. In fact i see not value in paying off debt at these levels. Share Buyback The outstanding share have a greater impact at consuming cash than any cureent debt does. Also they want to have a meaningful dividend, 3% is not meaningful, in risk adjusted world. The

[Trapped]

MHP, I disagree. A conservative approach to its balance sheet is precisely what led to ARX being awarded VII in the first place and hence being declared investment grade. In other words, there's no way this would have happened had ARX not demonstrated rigor in paying down its own debt, which enabled it to take advantage of this opporuntiy by being in very solid financial shape. I see a lot of