Post by
Trapped on Jul 25, 2021 8:09am
Let's keep our facts straight
Last year's dividend cut had absolutely nothing to do with management folly. In fact, it was the result of prudent management and as an investor I supported it wholeheartedly at the time.
The WHO had just declared a global pandemic, which sent markets reeling and the price of WTI below $20. Nobody knew where the pandemic was going to take us, so management made the prompt decision to reduce the dividend from $.05 to $.02 per month in an effort to protect the balance sheet. It's actually a credit to ARC that they weren't forced to eliminate it altoghter under these extreme circumstances.
If they did not take this protective measure, they would have been forced to fund the dividend with debt, which would have been reckless and just highly irresponsible at the time.
I applaud the fact that ARC stayed true to its principle of conservative decision-making. Those who would have you believe management did this to somehow enrich themselves or finance their pet projects are just plain wrong or potentially lying to you.
Cheers and GLTA as we see Q2 earnings this week.