Q: Thoughts on the quarter and outlook for ARX?
5i Research Answer:
EPS of 37c missed estimates of 57c; revenue of $1.38B beat estimates of $1.33B. EBITDA of $722M missed estimates by 10%. The quarter itself was so-so, but ARX also cut production guidance and this worried investors. Production guidance was lowered by about 20,000 b/d. But the capex budget remains the same at Q3 $1.85B. Q3 production improved but prices were lower. The dividend was increased 11%. While not a disaster, certainly the production guidance is disappointing. The stock remains very cheap with a 3.1% dividend.