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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 11, 2021 8:38am
340 Views
Post# 34221409

Share buybacks

Share buybacksSome on this board have criticized Arc for not doing a better job of promoting the quality of Kakwa (Cree word for porcupine) assets. But Arc seems to have given priority to share buybacks while the share price is so cheap, which makes total sense. Why pump your assets exactly when you are trying to buy up shares on the cheap. Someone speculated that FCF in Q4 would be around .70 per share, and with the share count around 700 million, or even less at this point, this would imply FCF around $490 million. FCF in Q3 was around $500 million. But, on average NG, NGL and WTI prices in Q4 have been higher than Q3. I think?? Q4 FCF will be .75 per share or at least $525 million. But the market is forward looking, so with all the issues around, there is great nervousness. The forward strip Nymex backwardation has flattened to around $3.00 for 2022, versus around $10 U.S., where it was a couple months ago. FCF is king and Arc could easily increase the dividend when they have hoovered up all the cheap shares they want. At some point the market will recognize just how much FCF Arc spins off.
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