Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 Shaleguyon Apr 25, 2022 12:19am
291 Views
Post# 34628014

1 Billion Dollar Capex at Kawka

1 Billion Dollar Capex at KawkaAt current prices of $90 WTi ( $115 dollar C5+), $6.50/Mcf Cdn, $50 per bbl NGL and $20 cash Costs, we get a netback of $75 per boe. $350 of additional capex gives 40 additional wells, 8.5 million DCET to give an additional 40 wells or 220,000 boe. No new processing needed Assuming a decline rate of 40 percent gives $876 million of cashflow. Payout approx. 4 months. Without my calculator we get free cash flow of 876-350 or 526 million. In the patch we used to call this growing company value. Mike Rose I'm sure ascribes to this concept. Again without my calculator, the 526 million of incremental FCF is about 526/700 or approx $0.75 per share or at 5 times FCF about $3.75 per share of value. No body including me can predict prices but two factors are at play. Eric Nuttall is absolutely right on an energy super cycle due to supply/demand fundamentals and secondly the war in Ukraine is orders of magnitude worse than anyone can imagine. IMHO (as a former offer in the CAF) it will take months for the war to be resolved and the sanctions will be in effect for years. Ever wonder why NA natgas prices have increased by 2.50 per mcf? Simply because the US is exporting more LNG to Europe. This is the only reason as historical storage do not support these prices. In summary, we are not in a COVID environment. Strong prices are here for at least 12 to 24months. Longer if Europe actually cuts back on Russian Oil and Gas
<< Previous
Bullboard Posts
Next >>