ARC Resources Ltd T.ARX

600 million capex, Boat Anchor

[MyHoneyPot]

The stock would do 10X better with management providing clarity regarding, dividend, debt, and investment opportunity in the company. Why is management making the pet project Attachie their highest priority for the corporation after debt reduction? 

Management is not savvy of public markets, and how to run present meaningful results, they skirt the questions of analysts, because they are not very smart, and think these guys believe their stories, their just being polite. Two for two analysts why are you stranding over 500 MMcf of processing, and a billion dollar of infrastructure at Kakwa to pursue attachie? I talked to these analysts myself after the presention, they knew management did not answer their questions. 

To the share holder you get the CFO says we need debt at the ultra low level of 1.0 X CF, then you get the president say let turn our back on 40,000 boe of half cycle production and put the share holder behind his pursuit for 600 million of new capex. 

ARC with is dividend at a historical low to FFO, shuffles their share holders further back in the queue because share price and dividends are not the priority of their management team. 

They are not making investments in a way that ensure that the best returns for the share holders are always guaranteed, they have put their pet projects first. 

The dismal performance of the stock is solely to be blamed on the poor representation of the company. The quality of the resources, the companies’ liquids strength, and cash flow generation have been downplayed by management with ultra low and meaningless presentations. No type curves or real economics are ever presented to investors.  

Management should resign, as they have not been able to paint the picture of a compelling investment opportunity in Arc Resources. They have failed to do this in my opinion.

IMHO

[Trapped]

I'm guessing today's an 'off the meds' kind of day for Rainman. Two weeks to Q2 financials!