ARC Resources Ltd T.ARX

analyst fuelled takeover targets

[powerlunchmoney]

This Canoe analyst sees Arc as a takeover target. Whats your price shareholders?!


https://www.bnnbloomberg.ca/video/you-want-to-invest-in-energy-companies-that-are-seeing-multiple-expansion-portfolio-manager~2865686

[Trapped]

Wow, good share and its the first time I have ever seen ARX discussed publically as a takeover target. Canoe is very well connected, so this is a topic I would take seriously. For me, I have been holding (and adding to) my position since just after the downturn previous to Covid. I first bought relatively high in 2017 and averaged down through the pandemic lows. I have always been really

[Quintessential1]

Yeah I have to say in the over $30 per share range also Trapped.   To demonstrate why I wanted to share an estimate by an energy analyst that came out after the ER Now Jamie has past net debt figures that conflict with ARX's own reported net debt and I can only assume that he added in operational liabilities that they do not.  What caught my eye was his estimate for 2025

[GunnerG]

"Now Jamie has past net debt figures that conflict with ARX's own reported net debt and I can only assume that he added in operational liabilities that they do not." What do you consider to be "operational liabilities" that management doesn't include in net debt?  Below is copied from the F/S

[GunnerG]

Hope this works.  Shows what management includes in net debt.

[Quintessential1]

Honestly no idea.  I had considered cap-ex but I can't make his figures and theirs jibe either way. If you know why i would be grateful if you could point it out as I doubt he is just mistaken. GLTY and ALL ARX BULLS

[downwithdotcom1]

ARC as a take-over target??? that would be a bold attempt for a few reasons.. Buying ARC fairly close to 52 week highs in the face of the current nat gas price deck might have detractors from the acquiring party. More importantly, cash and/or leveraged take-overs supported by banks are nearly impossible to obtain (more political/environmental ) these days. MERGERS on the other hand , with ARC

[Quintessential1]

This RBC article might explain their reasoning. Quite frankly I would rather ARX be the aquired target as opposed to the aquirerer but only at a premium. GLTA ARX BULLS

[Trapped]

Agreed, Quint. You definitely want to be the acquired. The VII combination was different because it was DEEP value and took place during an excruciating period for most industry players. Additionally, it had an extremely long payback horizon, which we're just starting to realize at this time. It was a master-class in M&A in terms of its timing and structure.  Given its size, I'

[downwithdotcom1]

Who's next ????  A few great choices with fantastic holdings in the Montney and both are down 50% from year highs-mostly fuelled from the collaspe of nat gas pricing. BIRCHCLIFF (BIR) a very low cost producer, owns their infrastructure with long life reserves-got caught up paying a 20 cent per quarter dividend while being completely unhedged ( a policy that made this company a one time