Great day for ARX ResourcesToday the price of Condensate is approximately 81.50 U.S. that is 102 dollars a boe Canadian.
Condensate is the most precious and highly sought-after commodity, of any commodity. Especially in Canada and especially with increase demand from Enbridge’s Line 3 Startup.
The investment community is waking up to the potential and liquids rich objectives of ARC resources, what ARC has is a liquids rich production mix, represents a high valued boe's of oil that gassy producers can only hope for.
Attachie is very much like Karr, except it is more condensate rich, for every boe of production from Attache it is about 54% liquids, but of those liquids 94% is condensate and 6% is NGL. This means every boe from Attachie is 50% condensate.
Gas 46% $30/boe $13.8
Condy 50% $102 $51.0
NGL 04% $30 $1.2
Price per Boe = $66 a boe of production for Attachie (Very high valued)
TOU (24.67 boe CF Q2)
To put that into perspective, TOU average BOE price in Q2 was $24.67.
So One boe from Attache is equal to 2.7 boes of production produced by TOU.
78% of TOU production is natural gas, 13.50% NGL's and 8.5% (Oil and Condensate)
60% of ARC production is natural gas, 15.00% NGL's and 25.0%(Oil and Condensate)
So the reality is that you get a lot more cash flow comes from Condensate, the best stock to own is Clearly Arc resources, they are both Liquids Rich and Condensate Rich.
So, it is great to see TOU moving up and as a rule of thumb, ARC should trade for at least half the value of TOU, and ultimately a lot higher.
ARC Resources $21 dollar price target and if TOU goes to 70 make that a 35-dollar price target. GO TOU GO
IMHO