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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 Farmer12on Nov 14, 2021 6:54pm
476 Views
Post# 34125357

Q4 FCF

Q4 FCFFCF in Q3 was around $500 million. The average WTI price in Q3 was ~$70 U.S. So far in Q4 the average price has been somewhere around $78 U.S..If you extrapolate that $8 U.S. differential you get about another $60-$70 million more FCF on top of the $500 million. 
The Q3 Henry Hub NG Spot Price in July $3.84 U.S., in August 4.07 U.S.,in September 5.16 U.S. The average of these 3 months is about $4.35 U.S. So far in Q4 the average price has been more than $5.00++ U.S. or almost 20% more. An increase in NG average price of $0.70 or $0.80 per MCF could add another $60-$80 million to FCF. The final component is the NGL production. Q3 average production was 50,891 per day x 27.92 Canadian average realized price or about $130 million Canadian for the quarter. Propane and other fuel prices have increased a lot in various markets, and this could another $20 million or so to FCF. If Q3 FCF was ~$500 million, the FCF in Q4 could be, very very roughly, another $150 million more, or $650 million or even more. If anybody out there has a clearer understanding of the numbers, it would be fun to have a glance at them. Anyone shorting these shares has to be very nimble or they might have their nuggets handed to them in a brown paper bag.
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