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Bullboard - Stock Discussion Forum ARC Resources Ltd T.ARX

Alternate Symbol(s):  AETUF

ARC Resources Ltd. is a Canadian energy company. It is focused on the exploration, development, and production of unconventional natural gas, condensate, natural gas liquids (NGLs), and crude oil in western Canada. Its operations are focused in the Montney region in Alberta and northeast British Columbia. Its operations in Alberta are located near Grande Prairie and the region includes Kakwa... see more

TSX:ARX - Post Discussion

ARC Resources Ltd > Sitting on their Hands
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Post by MyHoneyPot on May 07, 2022 12:21pm

Sitting on their Hands

While ARX has been sitting on their hands will full funding in place for Attachie and Sunrise, nothing has been resolved in regards to Treaty8 negociations, and they don't have timing or the known costs associated with a agreement with the BC first nations. 

So no production increases, and they have Starved Kakwa to the point it is barely meeting it production objectives. 

Internal Focus

So essentially ARX has been staffing up the management team, and adding a lot of cost to the organization that the market did not like. Tons of share based compensation. Part of their reason for a miss. 

So what they are telling us is tha ARX will be finally moving two more Rigs to Kakwa, and ramping up Kakwa to between 180,000-200,0000 boe. It sounds like Terry wants a stable 190,000 boe of production. 

What is really frustrating is this, directly adjacent to ARX kakwa is Paramount portion of that play. Except Paramounts portion is more sour. 

Paramount describes Karr as world class, with superior economics, and some wells have ROI of 10X. It would be nice to know what the ROI's are in ARX's Kakwa, but management fails to provide anything that they could be measured by, or that would require them to be transparent to the investment community.

Shaleguy, how big an impact do you think these two rigs will have?

Every boe at karr is roughly 35% condensate, and  is trading about $140 canadian now, so $50 dollars for evey boe from Kakwa is condensate. Your looking at greater than $100 dollars a boe at Kakwa. 

I think management tells us that are making the best investment decision for every dollar they invest, we don't want to hear it anymore we want to see numbers that reflect that. 

IMHO
Comment by Volkomm on May 07, 2022 12:45pm
I think Arc management will come around on the disclosures and transparency.  Many companies I would say were stuck in the old guard mentality of operate the business and poop out numbers and keep going.  Times have changed and investors are demanding robust transparency and business strategy. Many companies have gone through this change. Two that are the best so far are CVE and MEG ...more  
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