ARC Resources Ltd T.ARX

60% of your Company Disapproves of Management

[MyHoneyPot]

It sounds like a bunch of genius management that would buy the #1 Condensate play in the country, (Today Condensate is trading close to 90 dollars Canadian).

A play that had a budget of 1.25 billion in 2019, and a play that had 1.1 billion in 2020 and slash the capital budget to 525 million in 2021. In the highest liquids price environment, we have had for years. Really smart guys, they can make better returns banking 2% interest, a real vote of confidence for investors.

Then put forward and objective, to pursue a 2 year plus Attachie full cycle money pit project, that is laden with plant, first nation, environmental, and resource risks. Does that not look like just the most brilliant plan in the world?

Investors were excited about the Kakwa resource opportunity, and they represent more than 60 percent of ARC as a company. However, the company can not say anything good about this acquisition, what wrong with management thinking? 

While ARC management pursues dry gas, full cycle capex projects, the jewel of the Montney, Kakwa is an untapped, not understood, and with a uncertain future. No wonder investors are bailing on the management team wandering in the wilderness and investors are heading for the hills. 

IMHO

[Grandcentral]

Facts please, not lies. ~94.5% to 99.8% APPROVAL. Funny thing is, the .2% does 99.8% of the posts on SH. The VERY vocal minority. https://www.arcresources.com/news-and-features/press-releases/135232

[MyHoneyPot]

Point in case, Terry the president is the amongst the lowest ranked managment, i really put a lot more value regarding peoples views regarding management by looking at the share price, highly aligned support for the share price, is a product of investors confidence in managment. This does not exist at ARC resources. That is why funds are staying away and investors are dumping their arc shares

[Beakr123]

Unfortunately share price is not a direct correlation to CEO approval MHP. Like GC said, lets stick to hard numbers here.

[MyHoneyPot]

These are hard numbers, the share price is performing in a dismal manner. Their investment in Kakwa the #1 property in the entire porfolio representing 60 plus percent of their cash flow, at 525 million, is more that 100 percent less,  or put another way less than half of the proposed budget for 2020 and less than 40% of the budget for 2019. What gives do these guys really know what they are

[Beakr123]

You cant keep comparing VII's budget (which was a single asset company with all eggs in one basket) to Arc's new budget. Like it or not this isnt the same company anymore, get over it. Those arent hard numbers they are just your quick estimates which are extremely biased because you cant get over the fact they are taking a responsible approach to maximize long term profitability and extend

[MyHoneyPot]

Go back and look at historical published number, Kakwa is likely on the Highest Dollar per boe plays in the entire montney, and the current managment team is not up to the challenge to develop this resouce opportunity.  Lets pursue gas that genenates 18 dollars a boe and turn out back on 40 dollar a boe liquids production.  Your full of it, and this is a horendous disservice to share

[Mike975]

If you hate it so much, why dont you just sell. I enjoy these dips, opportunity to increase my position at a discount.

[MyHoneyPot]

I enjoy my investments when they go down, i am a sucker for self punishment. 

[Beakr123]

I dont think anyone, myself included, is arguing how profitable Kakwa is but this isnt a cowboy operation anymore. You may not agree with it but the vast majority of investors did hence why VII merged and is now ARC Resources. They have a much different strategy and one that is much more conservative. Again, you dont like it? Sell and move on. Smart investing would tell you to distribute your

[MyHoneyPot]

Sounds like another hope and pray meeting, things are going to work out, i just know it.. It doesn't require capital, and look how well paying off debt rewards the share holders, it doesn't the stock keeps going down. Paying off 2% debt is a waste of time, when you have a resource opportunity like kakwa, and every day there is an opportunity cost.  You would think 500 million debt

[Trapped]

You are my hero! I'm starting to think MHP's parents were first cousins...

[clamlinguine]

Management shouldn't be preserving Kakwa for the great unborn ARX investor. The future is now. I've sold half my ARX accordingly. Hope there is a strategy change.

[Beakr123]

Good, sell the rest and take MHP with you. I'll never understand investors who complain all the time and yet refuse to take their money elsewhere.

[MyHoneyPot]

Because your a hopeless fool, and you don't think for yourself, you can impact a company's thinking, just watch me it will happen.  IMHO

[Beakr123]

Your making no sense MHP as per usual. Sell and move on.

[MyHoneyPot]

You sell and move on, you are dragging the company into the pits of ruin. 

[Beakr123]

Heres a question for you MHP, why do you own ARC shares? Dont dance around it or throw out a bunch of garbage about Kakwa, just tell us all why you own ARC shares.

[MyHoneyPot]

I own ARC shares because i believe in Kakwa, and have been following the play, and know the resource intimately. It is now 60 percent of ARC revenue, and last time oil was 70 dollars the share were worth 47 dollars a share for VII generations. This is a gold mine.  The rest of ARC porfolio is dismal dry gas.  IMHO

[clamlinguine]

You'll "never understand" Beaker? Ok, let me help so you'll never "never understand" again. Great assets with weak management can be undervalued. They can then be taken over by companies with good management. The investor makes money. There's a reason. Let me know if you need another one.

[Beakr123]

I can respect that answer clam but why in the world would you tie up your money into ARC right now if thats what you believe? Do you honestly think VII's old assets are going to be turned around and sold or ARC bought by someone else? Pretty slim chances of that in the near term. If thats your stance put your money somewhere else thats undervalued and has a higher chance of increasing in value

[clamlinguine]

Even with a strategy I'm not entirely aligned with it's good value because it's been priced in. Any improved strategy will accelerate returns. I will wait and see a bit.