They were trading at values lower than reserve values. They are initiating their first share buyback this year. One analyst has a $26 price target for them. They are a big natural gas producer, and we are heading into a colder than normal winter outlook. When you can buy a quality company at these levels, where management is investing heavily themselves and it trades at 3 times cash flow, you can't go wrong.

The spending outlook for drilling in 2020 is very poor. Companies can not justify spending more to just keep production flat, especially when the market will not give you credit for it. Companies should be putting free cash flow into share buybacks. It is negative for service companies. He wonders when this has been fully discounted in the share price. He is more tempted to buy a producer.

He thinks there is still good upside to come. The sector has put all the good companies in the same camp as the poor performers and dragged all down to the same reduced valuations. Arc is yielding 9.1% and trades at a 25% discount to their reserve valuation. Out to 2021 their spending drops to create a 10% free cash flow yield after paying the dividend. He still sees this as an opportunity.

Tax loss sell? He thinks tax loss selling may create a risk that you miss out on the gains. He would stay in the sector, don't move into cannabis or something else. He does not have a lot of confidence with this management team. He sees better alternatives.

Buy for Yield? He would not buy here. Although the dividend is juicy, he thinks oil producers will fair better. VET still commands a higher multiple than other plays, so he sees better choices out there.

The fundamentals of sand fracing has changed dramatically. The spending outlook for fracing is also looking very poor for next year. He would not take the risk.

Privatization possibility? He is not surprised privatizations have not happened already in the space. He suggests taking a tax loss and roll into a better oil producer. The demand for the small cap names is just too small right now.