ARC Resources Ltd T.ARX

Reason to own ARX over TOU

[MyHoneyPot]

While the reality is that ARX could pump out those dividend at the same rate or maybe even a higher rate then TOU. Especially since it less than 50% of the market cap, last quarter they realized higher levels of FCF last quarter than TOU.

However their buying back their shares, people know i feel about that strategy (TOU does not do it). I don't like it, Eric Nuttal strategy but where is Eric these day, he has left ARX management in the dust. 

Arx is clearly on a more liquids rich path, and when Attachie finally get approved and built it will add to the liquids rich portfolio. 

So i guess you can't have any Tier1 liquid rich location, if you dont own Kakwa. 

I think ARX is half price and we are going to see huge price appreciation, expecially in 2023 if gas prices don't recover.

IMHO

[GunnerG]

Maybe Arc should do a reverse split to bring down the number of shares quickly and stop the old VII shareholders whining   No correlation between market cap and what is being paid out in dividends.  That's hilarious you think their is. You also don't understand the difference between the two companies "property plant and equipment" and the "debt".  

[MyHoneyPot]

Scotia bank  27, Rbc says 26, TD says 26 Its trading around 15 dollars, that is a 80% unside, pretty close to a double isn't it Guner. I think this is low, and TOU does not have a play area that will generate the kind of returns kakwa does, put it in your pipe and smoke it.  IMHO

[GunnerG]

It is close to a double for Arx and if Tou gets to CIBC Cameron Beans predictions it will be 80% +.UPSIDED for TOU as well.  This is your bs come back.  As I said, no correlation to market cap and dividends, no matter what bs you throw out  Lol Arc with a fraction of TOUs property plant and equipment, Arc way more debt, twice the shares, and 1/5 the drilling locations. What

[GunnerG]

MHP was it you using the Arc long term leases as a reason not to merge?

[SideshowBob1]

Off base again Gooner. Plant, property, equipment is also not a great metric to base any valuation to for an oil company. Why? Every piece of equipment plant/field is falling apart the second they splurge on it. It all requires intensive maintenance, constant upgrading,  and once the field inevitably declines to nothing (they all do), the company is left with the remediation/abondonement

[SideshowBob1]

Ever heard of Cabin Gas plant up by fort Nelson? I wonder how much of that facility is sitting on someone's balance sheet as plant property and equipment. Yet it's nothing but a boat anchor.  "An estimated 260 billion dollars of abandonment cost is sitting in wells, pipelines, plants, and oil sands infrastructure" Company's are starting to leave provisions for this

[GunnerG]

what is the most valuable item they have and how much do they have in comparison to other companies? Give you a hint PP&E