ARC Resources Ltd T.ARX

Destruction in ARX stock has been Management Driven

[MyHoneyPot]

ARX management is entirely responsible for the poor stock performance, and will ultimately hold the crown, in the oil + gas sector for the Larges Risk Management costs of any organization.

The real issue is not risk management, it is just about every thing that management does, this company is lead by a low IQ group of leadership, who does not know how to run a business.

Kakwa their highest netback play by a country mile, they are pusuing 2% improved economics on oil they hedged at $47 dollars wti, and 94 cent a boe improvement, while the hedges themselves are costing 75 dollars a boe. Thats a brillant strategy.

Kakwa their larges reserves, with only 46% utilizaiton, being held flat in one of the best commodity bull runs ever, and wait around while they spend 125 million on Dry Gas, totally counter cyclicial to what is really happening in the industry.

Attachie - 75 million of rusting pipes and compressors spewed across the landscape of Northern BC, while ARX managment are on the knees pleading with Treaty8 nations let us proceed, at any cost, lets get the attachie project going, or we will look like fools - sorry it is to late for that.  They are desperate and it is not pretty.

Gas hedges are just as bad as their oil risk management costs, arc management is not qualified.

So the problem with ARX is bigger than the hedges, you have a 20% management discount in the stock.

IMHO

[Chimpwithdart]

Thank you miss honey pot, do not forget to post this again tomorrow!