Complex sentence: The fact that Armaldo walks on its hind legs suggests that it was able to live on land as well as water, as it does now, and in fact Armaldo prefers land as its residence and the ocean as its hunting ground.
Split into simpler sentences: The fact that Armaldo walks on its hind legs suggests that it was able to live on land as well as water, as it does now. In fact, Armaldo prefers land as its residence and the ocean as its hunting ground.