Investors DigestUnable to post the entire article so here's the link. GLTA
https://www.adviceforinvestors.com/news/canadian-stocks/2-top-10-oil-and-gas-stocks-to-buy/#gsc.tab=0
2 top-10 oil and gas stocks to buy
Canadian petroleum companies are well-positioned for price hikes. Here are two top-10 rated oil and gas stocks from a survey of over 1,000 Canadian companies.
ARC Resources Ltd. (TSX—ARX)
RBC Capital Markets analysts Michael Harvey and Fabian Ledzion say oil and gas stock ARC Resources Ltd. is well positioned after a drama-free fourth-quarter 2021. After viewing the results that were released on Feb. 10, they continue to recommend ARX shares following its modest CFPS (cash flow per share) beat.
ARC Resources remains on the RBC Global Energy Best Ideas List. Messrs. Harvey and Ledzion upped their target price by a loonie at the time to $18 a share. Since then, war has broken out between Russia and Ukraine, which has shot the price of crude oil up to highs we haven’t seen since 2014. This will boost ARC.
Messrs. Harvey and Ledzion noted the company generated $460 million of FCF (free cash flow) (an 18 per cent annualized FCF yield). They continue to forecast two additional dividend increases through 2022 combined with meaningful buybacks.
ARC demonstrated fourth-quarter volumes of 345,831 barrels of oil equivalent per day (BOE/d), funds from operations (FFO) of $1.19 per share, and capital expenditures (capex) of $375 million, compared to Messrs. Harvey and Ledzion estimates of 345,379 boe/d of volume, $1.18 per share of FFO, and $310 million of capex.
ARC also released its adjusted guidance for 2022, which the company estimates will be between $1.2 billion to $1.3 billion, with volumes of between 330,000 BOE/d and 350,000 BOE/d, according to the analysts.
Messrs. Harvey and Ledzion say that the company’s current budget includes around $25 million to advance its Attachie project, a natural gas play in BC, which is currently in production. As for operations, the company reported $190 million captured through its subsidiary, Seven Generations; reported it drilled 47 wells and is in the process of completing 29 wells; and accelerated around $50 million of 2022 capex for the Attachie West Phase 1 to secure long-lead items.