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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 Sep 06, 2021 12:14pm
381 Views
Post# 33816653

Arc Share Price wheres it going

Arc Share Price wheres it goingFirst let me say that Arc has the best suite of assets with perhaps only equalled by TOU in its class and of course the biggies SU and CNQ. With respect to the latter two they have 1.15 and 1.12 billion shares outstanding respectively and produce about 660k and 900k of oil pd. Arc makes 100k of Cindy, oil and NFL's pd. SU and CNQ are trading at about $32.50 and $43.00 per share. Arxs number one weakness is the share count at 726,000,000 against a fraction of the oil production of the big guys. So the NCIB is a stroke of genius. As to price ARX peaked at 32.50 in April 2014 when oil was well over a 100 and gas prices were over 6 bucks. Then the shale taps opened and the Us rig count exploded. We all know what OPEC did. The VIi purchase was extremely expensive as it doubled the share count and added a sheet load of debt. Soooo, can the share price get to that level? Yes but only to a max of 15 as the share count has doubled. It can exceed it if we get back to a price based on fcf multiples that are reasonable and if oil prices stay above 70 bucks and if gas stays above 4 bucks. Those are the upsides. The downsides are the economic actions Biden takes to keep a lid on gasoline prices by encouraging drilling. Gas prices hit every American voter. In the near future American e and p companies will be ramping up natgas drilling at these prices. Whereas we only have the Montney to ramp up gas production, the US has the Utica, Marcellus, Haynesville and Eagle Ford to tap. And don't forget the Marcellus IP is over 20 Million cubic feet per day. As to our LNG project, they have done the right thing by partnering with a first Nation, but so did Steelhead. I give them a one in three chance of being built as the other BC first Nations and general BC public is ant fracking. A final word of caution about analysts forecasts. I followed VIi from day one and in the upswing the price never achieved more than 75 percent of the forecast. Some macro food for thought for y'all. Hammer away at my thoughts. Remember they have excellent assets and can easily shoot my prediction wrong. And one final as I age at 68 into the sunset E and p companies have about 10 years of of glory days left before entering into a 25 year decline.. And while I'm ranting, hopefully we can a government that wakes up to the fact that electrical generation and distribution is the key to de carbonization. We'll need to double our capacity but it will cost less than CERB.Canada can do we built the CPR afterall but poor countries can't so oil will be around for awhile
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