$AREXQ ULTIMATE DD
(MUST READ) A few things I find very intriguing about $AREXQ and why I think it's worth holding. (Yes I get it, it's a BK stock, but remember they Voluntarily Declared bankruptcy)
So let me put this into my own prospective. Remember they VOLUNTARILY declared BK due to the depreciated oil prices.
In November, why did J.P. MORGAN put up a $16.5m DIP, which was approved by the courts?
Why did $AREXQ remain operational from the inception of the BK? Paying bills, employees etc..? At $20/barrel.
Why didn't any insiders or Institutional holders dump shares prior to announcing the BK? We seen what the Politicians did prior to announcing COVID, they sold before things got nasty. Show me a Form 4 here, there aren't any. Wait, one, a cancellation of shares for the CEO due to poor performance.
Why does Billionaire Wilks still hold 37.9m shares in which he paid a huge premium for, $3 / share or approximately $120m.
$AREXQ continued generating $20m per Quarter at depreciated oil prices, $20/barrel, Oil us now trading at $40, it costs an average oil company $36 before making profits, I see $4 / barrel in profits moving forward.
Then the big one that caught everyone's attention, a $22m Cash Settlement awarded because Alpine pulled out on their $192m buyout bid due to the depreciated oil prices. An 8-K supports this award.
Since November, AREXQ had more than $38.5m CASH, and approximately $20m in Revenue to support the company during the proceedings.
So again, with an Enterprise value of more than $400m and $7B in PROVEN OIL RESERVES, why are we trading at a $2.6m Market cap, why are we trading at $0.03 per share?
Too many positive factors not to hold shares and see where they head moving forward. Risky yes, but the reward could far exceed the risk, considering today's Valuation sits over $5/share.
Shareholders, Major Holders Breakdown
3.91% of Shares Held by All Insider
49.92% of Shares Held by Institutions
51.96% of Float Held by Institutions
Enterprise value $427 MM1
High-quality reserve base
•180.1 MMBoe proved reserves2
•60% liquids, 29% oil
•$761.8 MM proved PV-10 (non-GAAP)
Permian Basin core operating area
•128,000 gross (116,000 net) acres
•~900 MMBoe gross, unrisked resource potential
•~1,300 identified HZ drilling locations
•~100% working interest
•Large contiguous acreage position with multiple benches
Large-scale infrastructure facilitates efficient development
•329,000 Bbl capacity water recycling facility
•Centralized compressor and gas lift infrastructure
•Stable leasehold that is largely HBP