ARC Resources Ltd T.ARX

Here is my Question I sent to ARX IR

[MyHoneyPot]

Maybe someone on this board can answer it for me, without a personnel attack. This is an investment board and this is a good investment question. I passed this question past a CEO friend of my and he says its 100% fair to ask.

What is the budget for ARX share buyback objective of the remaining 240 million shares.

The buyback has a share count objective but fails to communicate a cost objective to the shareholders. The buyback objective will reduce the share count 51%.

Understanding this, do you have a plan to restrict the granting of options and performance incentives because you fully understand that you objective to reduce the share count 51%?

Also, ARX have invested in adding production at Attachie and at Sunrise.

So, you are not holding the production flat and the value of the shares should also appreciate because of increased production and cashflow. Your objective being a share count objective means it will continually get more expensive as the production increases and the share count decreases to accomplish this goal.

These actions significantly benefit insiders who hold large blocks of shares and significantly increase the value of options as the company is driving the value per share by reducing the number of shares.

ARX is intentionally adding to the value to options with every share they buy back.  What restriction is the company putting on the granting of options and performance share recognizing their objective is to buy back 51% of the share float?

What is ARX projected cost to buy back 240 million shares? and what is the time horizon?

Looking forward to an answer to this question, because they have a stated goal for share buybacks in the number of shares they want to buyback. 

Thank you all fellow investors....

Good Day

MHP
IMHO

[robert41]

Excuse my ignorance but why do they have to buy back 240 million shares? Did the company state that? As for the cost of buying back any shares no one in any company can answer that given it depends on share price and commodity pricing.

[MyHoneyPot]

It in the presentation,  Share count objective Link That what i read.it, infact i will include the footnotes from the slide. 1) On April 6, 2021, ARC issued 369.4 million common shares to acquire Seven Generations . Following the business combination, ARC’s outstanding common shares balance was 723.0 million 2) Based on actual pricing in Q2 2024, and forward pricing thereafter of US$70

[MyHoneyPot]

It also depends on the production profile, and the share count. 1. Reducing the share count should increase the value of the remaining shares 2. Increasing production should increase the CF per remaining shares.  It took roughly 4 years to buy 130 million shares. With attachie is coming on line, and LNG Canada is starting up CF should increase ARC current dividend is 2.97% at the current

[Quintessential1]

Okay 1. The dividend doesn't go down the yield percentage does. 2.  As you have stated many times insiders at ARX do not own large blocks of shares. 3.  Options grants as performance bonuses are controlled and aprroved by the BOD 4.  The BOD is approved by the share holders. Most ARX shareholders are institutions with pretty good oversight and if they thought anything was

[robert41]

Thx for the good discussion mhp and q....buying back what they hope too and at what price is the least of my concerns. Strong commodity prices and company mgmt are my only concerns buybacks and debt will be taken care of in due course as I see it. I like the direction of Arc as we speak.

[MyHoneyPot]

It shoud be published somewhere the number of options outstanding, i believe in kelts case is around 6% of the entire share float. Roughly i am guessing 12 million options. They use this number to caculate a fully diluted NAV per share for the company.  Companies can not issue more than 10% of the float in options, i have been told by a securities lawyer.  So as a savvy investors we

[Quintessential1]

So what's your issue with ARX and options then?   Surely they have the same ruled applied to them. Had to answer my own question so you can GFY from here on out fellow investor that just @itches.  Since commencing its initial NCIB in September 2021, ARC has repurchased approximately 18 per cent of total outstanding shares or 132 million common shares, at a weighted

[ztransforms173]

- LOOK AT the AUDITED FINANCIAL REPORTS {AFR} at FISCAL YEAR END and MANAGEMENT INFORMATION CIRCULARS (MIC) for SPECIFIC INSIDERS [senior officers + directors] - this is STANDARD DUE DILIGENCE z173

[MyHoneyPot]

I have, and I have noticed that about $1.20 of every boe produced goes to employee share compensation. The employee share compensation is almost equivalent to the G&A expenses for the company.  However i need a better explanation of their management strategy the plan, especially considering their objective is to reduce the share flow to a level of pre seven generations merger.  It

[Westcoastenergy]

Putting in that you spoke to a CEO and that person says it is a legitimate question does not make it so.  You seem to have a vendetta against management and employees of ARX. Frankly, and I know you can't see it for the trees, all shareholders (ARX employees included) benefit with share buybacks.  You seem to imply an insidious scheme which only benefits insiders.  ALL