ARC Resources Ltd T.ARX

Balance Sheet Strength - New Article from the FP

[Trapped]

This article features NuVista but it could have been written about virtually any producer in the Canadian oil patch. ARX paid off more than $1B in debt since the acquisition of VII and continues to strengthen its position on a measured basis while pursuing dividend increases and aggressive buybacks. IMO it will get more and more difficult to ignore Canadian energy in the years ahead. For those of us who recognized this opportunity years in advance, I say 'Well done!'

'Bulletproof balance sheet': Flush with cash, Canadian oilpatch rapidly slashes debt

https://financialpost.com/business/energy/varcoe-canadian-oilpatch-cuts-debt-levels/wcm/21f0f391-1098-4bbf-b5c1-bcd41cc27b0a

[Quintessential1]

Great post Trapped! ARX's conservative management showing just how much FCF they have by buying back shares. At a 4% dividend yield they are a better use of the cash over paying down longterm debt at 2 and 3% rates not due until 2025 and 2031 especially with a 2% tax coming in 2024. Net debt is being paid for out of FFO as are all liabilities and cap-ex or shares would not be repurchased as

[MyHoneyPot]

The debt levels of these companies make it easy for management to set modest goals, attached to big bonus checks. I like it better when management is aligned with shareholders, buying shares with their own cash, and not milking it at both ends big compensation, big bonus, and low expectations for the shareholders.  A good point is that with an industry flush with cash there is opportunities

[GunnerG]

Great strategy MHP, buy high sell low.  LOL  Didn't realize you are American.   The debt levels of these companies make it easy for management to set modest goals, attached to big bonus checks. I like it better when management is aligned with shareholders, buying shares with their own cash, and not milking it at both ends big compensation, big bonus, and low expectations

[MyHoneyPot]

ARX management is dismal, the management neither have a clear plan or vision.  ARX should get a bounce, because the after more than 2 billion dollars in hedging losses, management has stopped hedging and things are beginning to look better on that front.  The arx management is just not inteligent, and I am going to invest in companies that really take the shareholders interest to heart

[GunnerG]

Of course their plan and vision is never clear when you lack the necessary ability to comprehend what you are reading.  You demonstrate that pretty much every day. Management unintelligent (note, its two l's), no skin in the game (CEO has $6M in shares), underperform, provide false expectations (huh) and just shameful.  Good enough for you to stick around for over two years with

[MyHoneyPot]

CEO having 6 million dollars worth of shares is nothing less than shameful. The shareprice just recently trading at $14.39 is nothing short of shameful.  Listening to the  management promote Sunrise (25 sections of dry gas) a company with a 10 Billion marketcap what is wrong here, everything, management are idiots. I am surrounded by fools here Gunner, you know what i mean. IMHO

[Trapped]

MHP, I disagree with you comletely on that point. You are wrong. If you look at his background instead of making broad generalizations, Terry isn't some millionaire founder or wealthy investor who just happened along. He's a company man who came up through the ranks and rose to the position of CEO after years of working in escalating positions of responsibility. Although he now makes a

[Quintessential1]

I think someone is jealous that management bought back shares at a lower ACB than himself. Everday management does a good job he just has trouble reconciling that the people he thinks are fools used all their saved up money from their worthless natural gas plays to buy enough condensate to become the country's largest producer of it from the very genius management team that owned it. Then

[Trapped]

100 percent, Quint. What's worse is the company is being criticized by an armchair CEO who never set foot on the field. It's actually sad. Cheers and GLTA ARX bulls.

[MyHoneyPot]

It takes real genius to drop nearly 2 billion dollars in hedging, good thing they took down the video it made me sick to my stomach.  A 10 billion dollar company spend more time talking about a 25 sections dry gas play which is costing a fortune, and i don't believe it makes any real money. While over paying for shares, over compensating a rookie management team, that have dedont know

[GunnerG]

It takes real genius to drop nearly 2 billion dollars in hedging, good thing they took down the video it made me sick to my stomach.  A 10 billion dollar company spend more time talking about a 25 sections dry gas play which is costing a fortune, and i don't believe it makes any real money. VII shareholders see it as a disaster.  ARC SH consider the enormous debt and lousy hedges

[Quintessential1]

Yeah despite the lousy hedges taken on to secure their monstrous debt the fool hardy rookie management team saw passed the dumpster fire that the genius management team was about to make of their crown jewel assets and relieved the genius management team of them all in deal second only to the Dutch trade for the Island of Manhatten in its fame.     The deal being so lucrative, that

[GunnerG]

MHP makes it sound like management determines their compensation package. Doesn't realize the BOD detmines the compensation and needs to approve it.  CEO and CFO report to the BOD, not the other way around.

[Quintessential1]

 CEO and CFO report to the BOD, not the other way around. Well the armchair CEO reports to the delusion in his mind: Generalisimo Miel Potus. I don't imagine ARX has one of those. GLTY and all ARX BULLS

[angelnicky]

Gas approaching all time low Hedging would of been great at the higher prices before decline Ukraine is now exporting electricity as the winter was mild Gas companies will start shutting in at these prices