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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

Comment by WAS1on Jun 10, 2021 4:20pm
123 Views
Post# 33366846

RE:What the VII Generations Deal done at the Board?

RE:What the VII Generations Deal done at the Board?MHP, I think you're onto something.  My understanding was the deal was negotiated by the board chairs of each company.  My take, 7G's chair (an American), wanted out and threw most of 7G's senior (read experienced) people under the bus to get the deal done.  Why else (debt included) would you only do a 1 x 1.10 exchange when 7G's assets are going to account for over two-thirds of Arc's free cash flow this year alone?  I'll add that even when the deal was consummated and prices were significantly lower than today, the FCF projections (2/3 from 7G) were similar to that ratio (comparing Q4-20). 

Furthermore Arc, in my view, took the bottom of 7G's board members (i.e. no CPP rep, no independent E&P CEO's (x3) and no Sr. Banking/Investment people) likely to boost their ESG score.  They also took the bottom of the "C" suite and bottom of the executives and it's my understanding they're purging the remaining 7G middle management as we speak.  Make no mistake, this is an Arc run company with little to no 7G influence which is fine if they run it properly.  As an FYI to you constant pumpers, I'm long (almost 60K shares) as I believe the company has the best assets (mostly at Kakwa) in the basin.  However, similar to 7G where I was not a fan of the now ex-CEO, I'm more than a little concerned about the current crop of rookies running the combined entity but I'm willng to "wait and see" how it all turns out because I also believe commodity prices will whitewash it and this will march (slower than I'd like) upwards in spite of poor to average managment.  GLTA!!
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