The Posture of ARX resouces to the Industry is very difficult to understand, and it is impossible to come up with a real reason to invest in the company, the only reason that can imagine is that the value of the current base assets is understated, and a some point in time they will be properly valued, and this will lead to a major appreciation in the share value.
Really if you look at ARX in terms of what management has accomplishment, it is not really very exciting.
- 1.2 billion risk management loss in 2021
- 1+ billion in risk management losses for 2022
- #1 project riddled with Treaty8 issues an no time lines.(75 million of sunk capital)
- 40 Mmcf of gas production add at Sunrise (125 million, expensive)
- Kakwa production Flat and 46% utilization
Really the responce of are management is anything but stellar, with 130 U.S. oil, Condensate at 160 dollars a boe Canadian they have not added any production capacity, no have they adjusted their objectives.
So if you were a company looking to buy mispriced assets here is the place to do it, because the management discount applied to the assets is about $10 dollars a share.
I would not be surprized to see someone buyout and and free these assets from their current dismal management.
IMHO