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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 Farmer12on Jul 27, 2021 9:03am
224 Views
Post# 33609265

NG price

NG priceIn Arc's July Presentation there are several price scenarios each with their associated debt estimate. Their most optimistic scenario was with WTI at $60 and Henry Hub at $2.90. WTI has been almost continuously above $70 U.S. for some time now and Henry Hub is around 4.09 U.S., which is about $5.13 Canadian! Arc break even is around $1.75 Canadian? The year end debt projection of $1.3 billion approximately at $60 WTI and $2.90 Henry Hub, will be blown away if Arc, erring on the side of caution, throws all of its FCF towards the debt. A powerful heat wave is spreading across very broad areas of the U.S. this week which will require a certain amount of gas for air conditioning purposes. It is hard to see how near term injection levels will be as large as required to bring late year inventory up near average levels.I bought some more shares yesterday also. Arc management must be giggling into their whiskers as they contemplate this bonanza.
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