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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 MyHoneyPoton Oct 25, 2021 11:14am
107 Views
Post# 34044917

RE:RE:A Bird in the Hand

RE:RE:A Bird in the HandGood question, increasing production is the only way for the company to get traction and get out from under the weight of those dismal hedges. 

If management added 10,000 boe a karr, those well will pay back in less than 4 months at these prices and the new production will be unhedges. So this strategy would reduce the percentage of your hedging exposure overall by and more full priced produciton to the mix. 

They have the plants, resource, and transportation capacity to pursue this. They obviously have the cash to do this buying back 11 million shares. 

Kakwa has produced historically more than 40,000 more boe's then is production last quater. Management needs to do some scientific reasearch of something, or maybe they need to have the chair of the board tell them to get off their butts.

Increasing production adds shareholder values, and will pay back quickly and reduce the impact of those dismal hedges. 

IMHO

 
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