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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 Shaleguyon Aug 06, 2021 10:50am
200 Views
Post# 33663192

Top Kakwa Spending is Down by 50 Percent

Top Kakwa Spending is Down by 50 PercentTop, I have never said ARX doesn't have great assets and potential. But the fact is they have committed to spend 600 million at Kakwa which is the same budget that VII went forward with in Q1 of 2020, after cutting it from 1.1 billion due to Covid. This seems to be very timid to me. At 60 wells per year they are extending the recovery of the reserves by almost 50 percent and destroying the NPV of the company. With the unrelenting March towards de-carbonization, oil reserves in 15 years won't have much value. This is where the delayed reserves will fall. I could use a crude old oilfield expression to describe delaying oilfield production but it's no longer appropriate or allowed in today's world. Along this line of thought why do you think the Saudi oil minister say they'll drill every last drop. Because they know that oils day as king is on borrowed time. And finally Top I know you are a knowledgeable guy and won't disparage you. Arc has done assets with a balanced slate of products and should well. I am looking to add at some point. That said there weaknesses are the number of shares out. They have a share count near CNQ with a fraction of the production. And two they have a management team used to running a 140,000 boepd company built over 20 years that was a staid royalty trust for a long time. Bottomline they have a culture that is not nimble. The VIi transaction was driven by bankers. Sorry for the rant boys. I'll StFU for now.
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