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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 Quintessential1on Nov 14, 2021 10:15am
265 Views
Post# 34124531

RE:RE:RE:TD Note

RE:RE:RE:TD NoteI don't ridicule anyone for taking a stab at a valuation of the company and consequently the share price.  I applaud it.

By production metrics ARX is way undervalued however,  until the hedging losses fall off and the balance sheet starts to reflect that production in actual profit especially EPS (let's face it that's the metric the algos track) we won't see significant jumps in share price.

If commodity prices stay at this level we should see a gradual grind up in share price as the next ER approaches and the market wakes up to ARX's higher dividend and increased earnings based on diminishing hedges but we won't see a pop in share price until we see a pop in the ER.  Share buy backs should also help keep the share price stay buoyant while we wait.

I am looking forward to my increased divy and a very lucrative 2022.

GLTA


clamlinguine wrote: Arc is 40 % liquids compared to Storms 19% so to say Arc is 20 % undervalued by the sale metrics is probably conservative.



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