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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 Dec 05, 2021 1:11pm
266 Views
Post# 34200048

Q4

Q4Interesting that the Saudis are raising their oil export prices to Asia in relation to benchmarks. This indicates a certain level of confidence relating to supply demand balance, particularly robust demand. The Oil Sands Magasine statistics indicated that the average WTI price in October was ~$80 U.S., in November ~$78 U.S. The Henry Hub average NG price in October was ~$5.50 U.S., and in November ~$5.10 U.S. Even if we assume, for arguments sake, average WTI of $66 U.S. in December and $4 U.S. Henry Hub, the average prices for Q4 are much superior to Q3. Management will goose production wherever feasible to profit from these great prices. Nasty hedges will drop off considerably in Q1 2022 and should promise a great quarter after an amazing Q4 2021 with Q4 FCF somewhere around $600 million. Sometimes a sleepy stock wakes up and makes a big move in a short time, like when a smoker accidentally sets his bed on fire.
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