ARC Resources Ltd T.ARX

Comments = Scotiabank

[TimeBuilder]

ARC Resources Maintained at Sector Outperform by Scotiabank Following Q1 Results

11:59 AM EDT, 05/06/2022 (MT Newswires) -- Scotiabank on Friday reiterated its sector-outperform rating on the shares of ARC Resources (ARX.TO) with a C$27.00 price target after the Western Canadian oil and gas producer reported mixed first-quarter results while raising its dividend by 20%.

"ARX delivered Q1/22 production in line with consensus, while Adjusted Funds Flow (AFF) was just behind expectations on a combination of higher-than-expected cash-settled share-based compensation expense and cash taxes, analyst Cameron Bean said in a note. "Notably, these items came in above expectations due to the strength in both ARX's share price and commodity prices. All things considered, we see enough positives in the release to largely offset the small AFF miss. The dividend increase comes one quarter faster than expected and looks highly sustainable. ARX's plan to shift capital to Kakwa (a top tier asset) for the balance of 2022 is not a surprise given the ongoing regulatory uncertainty in BC (we continue to expect a workable solution, though the process is taking longer than expected)."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 18.19, Change: -0.68, Percent Change: -3.60