Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 MyHoneyPoton Oct 31, 2021 3:29pm
176 Views
Post# 34071077

Hedging Q3

Hedging Q3WTI          = $70.55 U.S.
AECO      =  $3.60  Canadian
Nymex     =  $4.01  U.S.
Exchange= .78
Days            92
Royalities     10%

Oil 43,250 boe Hedge   ($51.21 U.S)     loss = $108,524,674 Can  Includes royalities
AECO 200,000 MMbtu  ($2.36 C$)        loss = $  25,097,600 Can  Includes royalities
Nymex 415,000 MMbtu ($2.85 U.S)       loss = $ 62,458,564  Can  Includes royalities

Total Hedging Losses Q3 = 196,080,838 Canadian dollars
Loss per share 725 million = 27 cents
Loss per boe of production (335,000) = $6.36 dollars a boe. 

Net Comodity prices after hedging - royalities

OIL         = $44.16 boe U.S., $56.61 canadian        =63%
AECO     =$2.00  boe Canadian                              =55%
Nymex    =$2.45 U.S. or $3.14 boe Canadian         =61%   (transportation not factored)

These are rough Q3 numbers and considering your getting 6.6 cents in dividends 27 cents a share in hedging losses is pretty expensive.

Q3 was 70.55 oil and the hedging loss including royalities is $21.27 boe

Quarterly hedging losses (Going Forward 2021 Q4)

80 dollars U.S. oil, 5 dollar Aeco and 5 dollar Nymex (q4 prices could be higher)

Heding losses = 320 million dollars, 44 cents a share, $10.40 a boe 

This makes your 6.6 cent dividend look real good.

IMHO
<< Previous
Bullboard Posts
Next >>