TSX:ARX - Post Discussion
Post by
retiredcf on Nov 30, 2023 8:59am
RBC
November 29, 2023
ARC Resources Ltd.
Adding European LNG Exposure via Cheniere TTF Contract
TSX: ARX | CAD 21.60 | Outperform | Price Target CAD 28.00
Sentiment: Positive
ARX announced a long-term LNG supply agreement with Cheniere Energy at Sabine Pass Liquefaction Stage V in the US Gulf Coast starting in 2029. The terms to the agreement consist of a 15-year LNG agreement supplying 140,000 mmbtu/d (1 MTPA) of natural gas based on Dutch Title Transfer Facility (TTF) pricing. ARC Resources remains on our RBC Global Energy Best Ideas List.
• 15-year LNG supply agreement; 138 mmcf/d (1 MTPA). ARX plans to supply the Sabine Pass Liquefaction Stage V project with 138 mmcf/d of natural gas for a 15-year period commencing on the completion of the project (2029), which in turn will increase ARX's exposure to global LNG pricing to ~475 mmcf/d (including its Cheniere Corpus Christie Stage III contract - here and MOU with Cedar LNG - here). Upon the commencement of the Cheniere contracts, ARX will provide 20% of its natural gas production to global markets.
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