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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 uncutgemson Aug 13, 2021 12:49pm
107 Views
Post# 33701176

RE:Attachie

RE:Attachie60% liquids seems way too high for that area.
the pilot program is 54% liquids.
I don't see anybody operating in that area getting 60% liquids cuts.

alertmeipp wrote: From RBC:

Attachie project would pay out in less than two years at current prices of C$75/bbl. At our deck, we see the Attachie project paying out in less than two years (post commissioning), as shown in Exhibit 4. We see Attachie—fully ramped at 42,000 boe/d—delivering annualized cash flow of approximately $500 million (at C$75/bbl, C$2.50/mcf), with roughly 85% of revenue driven by liquids. This takes into account facility construction of $700 million, consisting of $250 million for plant/lines/ water, $350 million for initial DCET, and about $100 million annually to keep the plant full.


Attachie - poised for Q4/21 sanctioning. Attachie Phase 1 remains the next major project for ARC, which contemplates a capital investment of $600 million (about half plant/facilities) driving volume output of 40,000 boe/d (~60% liquids) and free cash flows of roughly $400 million (C$75/ bbl oil). As one of the largest undeveloped Montney plays in Western Canada, Attachie represents meaningful future upside and with success, sets up for Phase 2/3 expansions. We have explored the Attachie project more in our recent research here.


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