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ARC Resources Ltd T.ARX

Alternate Symbol(s):  AETUF

ARC Resources Ltd. is a Canadian energy company. It is focused on the exploration, development, and production of unconventional natural gas, condensate, natural gas liquids (NGLs), and crude oil in western Canada. Its operations are focused in the Montney region in Alberta and northeast British Columbia. Its operations in Alberta are located near Grande Prairie and the region includes Kakwa and Ante Creek. Kakwa is a condensate-rich and high-deliverability natural gas play with top-tier development opportunities. Its operations in northeast British Columbia are located near Dawson Creek and the region includes Greater Dawson, Sunrise, Attachie, and Septimus and Sundown. The Greater Dawson operating area includes Dawson Phases I, II, III and IV and Parkland. The Attachie is a condensate-rich, natural gas play primed for large-scale development. Sunrise is a dry natural gas play with a low-cost structure, well deliverability and direct connectivity to liquefied natural gas Canada.


TSX:ARX - Post by User

Post by MyHoneyPoton Apr 27, 2021 11:02am
141 Views
Post# 33074164

50/50 Strategy

50/50 Strategy
It makes no sense to developed more reserves, spend more money on increaseing production, and add more corporate overhead, when the stock is trading at these levels. 

A 50-50 strategy, just spending maintenance Capex, and taking 50% of the FCF and dividending it out, and 50% of the FCF in paying down debt seems like a measured approach. 

With your shares trading in the mid 7 dollar range, there is no point taking on debt, increasing production, or doing anything other then optimizing the assets you already have. 

ARC, has empty gas plants in existing play areas, and gas transportation commitments that are being under utilized, why invest the money in Attachie now, when your share price in languishing?

This money you bank in waiting will only shore up the balance sheet, that is fine the way it is and reward share holders. 

The market need to see management with a real plan, that is defined and measureable and results in share holder value. Paying down 2% debt or other exploration project where you will not see any of the fruits for over a year just does not cut it anymore. 

We are here to make money, not provide employment contracts for all the exec's at ARC. It is a sad sight to see how many ARC employee have performance shares on the insiders list and the stock in in the mid 7 dollar rangs. 

IMHO
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