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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 MyHoneyPoton Jan 09, 2022 10:29am
489 Views
Post# 34297418

2022 Forcast

2022 Forcast$74 dollar WTI - Gas $3.82 U.S. Mcf

ARX would have $1714 million in Adjusted Cash Flow.

That is roughly 30% less than TOU who is projected to have $2226 million in Adjusted Cash Flow

Adjusted Cash flow per share 

ARX = 1714/695       million share = $2.46          Share price $12.24    2.46/12.24 =  20.10%
TOU = 2226/330.7    million share = $6.73          Share price $43.23    6.73/43.23 = 15.56%


So really you do get more Adjusted CF on a dollar value per share basis, However TOU on an enterprise basis has essentially zero debt where ARC has 1.9 billion in debt.  

If you take the debt into account on an enterprise bases, ARC is still undervalued but since the debt is essentially equal to their adjusted funds flow i do not feel that debt is really a big issue. 


Adjusted CF Number I took off a "Peters" Spreadsheet that I reviewed. 

IMHO

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