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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 MyHoneyPoton May 07, 2022 6:15pm
101 Views
Post# 34664824

RE:RE:RE:RE:Share buybacks

RE:RE:RE:RE:Share buybacksThe Nav that justifies the share buyback is supported by a mid range commodity cycle price.

Its kind of the same rational they is used to establish the regular dividend. 

So the Nav is based on the Mid Range Commodity price that Arc recognizes. These current high prices likely will not last forever and their will be a pull back to a more mid range pricing enviroment, which justifies a stock price in the $20 dollar range. 

Otherwise, you could end up buying your shares back at the top of the market and maybe shareholders would rather have special dividend, or investment in more production. 

That is why TOU and POU are not buying back share but rewarding shareholders with special dividends, they know the net asset value at a commody cycle midpoint, and will not overpay for their stock in buybacks, if you have a price blip.

Most of the current price increase is currently because of geopolitical risk, that is a product of the current energy crisis, this will not last forever. 

IMHO


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