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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 Apr 17, 2022 4:25pm
183 Views
Post# 34608700

RE:RE:RE:Kakwa is Happening

RE:RE:RE:Kakwa is HappeningNatural Gas prices have over doubled in the last year and their is no sign of them going down or slowing down given demand.  The NG in the ground is money in the bank this year because of the European demand caused by the Ukraine war, Russian sanctions and low production in Europe.

Only one of these events was foreseeable and it took all three to create this kind of demand leading to this high an NG price.

Now that it has happened ramping up production makes sense to take advantage of it and I would assume that is why management has decided to try and do it now.  Added production unhedged at these prices could make up for hedging losses in a hurry especially if these prices and this demand persists.  Even If Russia withdrew right now (and no one believes they will), sanctions will stay in place for the foreseeable future.  If they do not sanctions will get worse demand will increase and prices will go higher and management will have ramped up production to cash in for the next year or two.  Wars never last forever and neither do sanctions.  Lets get it while it is hot.

GLTA Longs


MyHoneyPot wrote: I am sorry, but i guess that you have to let the facts speak for themselves.

Fact 1
A company with the largest hedging losses in the entire patch, is realy a good example of what not to do, and the fabrication by the posters that those hedges were all in place I no their wrong, show me facts, stop with the lip service. 

Fact 2
Kakwa had a history of 240,000 boe/day of production, and it alway has been and always will be ARX highest netback property, Arx is still lagging, what do you think they could of done with 1.2 billion lost on hedging in 2021, do you think it would of impacted share prices, all $2 a share in FCF lost. Expect them to repeat in hedging loss leadership in 2022.

Fact 3
Arc did recogonize to their credit that they had an entire gas plant built that no one could explain the rational of having, even the seven generation management that were there could come up with rational regarding the plant. Now they have come up with some ideas according to shaleguy to repurpose and this could have a big impact on growing Kakwa production into the future. Good on them, its been 3-4 years in the making. 

Fact 4
Attachie has been a 7 year distraction consuming capital, and still to this day has no first nations agreement and no start date, treaty8 struggling. Really why are they so eager to throw money at a project that has no first nations agreement. My past experience in these matters says that does not work, a recipe for failure, and these issues are alway very messy. 

Fact 5
Perhaps with now $7.35 U.S. Natural Gas a little more take away at Kakwa may of been a good thing. 

I think that old ARX was run by the CFO and CEO and really not a lot of other senior management, they could not handle Holt who was likely a real COO, he stepped on bibby toes a few to many times is my guess. 

Kakwa is the future of ARX resouces and as Kakwa goes so will ARX Resources. That is the only reason i think ARX is investable at all. 

IMHO


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