ARC Resources Ltd T.ARX

Alternate Symbol(s): AETUF

Energy Oil & Gas E&P

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.

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ARC Resources Ltd > Share Buybacks

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Comment by MyHoneyPoton Apr 23, 2022 2:57pm

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Post# 34626452

RE:RE:Share Buybacks

Your right about the cash flow consideration, and lets look at it another way.

10% share buyback 73 million shares 17 dollars a share equates to 1.241 billion dollars.

If Arx is trading at 20% FCF per share that would be 3.40 a share

1.241 billion / 680 million shares = $1.82 share

So if they bought back hedges, there FCF could go to $5.22 a share or a 53% increase

Buying back the shares only provides a 10% FCF increase per share.

Arc share holders are getting the short end of the stick, No Dividends, Huge Share Buybacks, and Huge hedge Costs and it does not really translate to a great evaluation for the stock.

IMHO

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