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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 Trappedon Sep 06, 2022 12:17pm
263 Views
Post# 34944171

RE:RE:RE:RE:Kakwa - Finally we will see some growth

RE:RE:RE:RE:Kakwa - Finally we will see some growthThe market isn't rewarding producers who grow their production rapidly. And even if they wanted to, where are the work crews coming from in a severely labour-constrained environment? 

ARX is consistently hitting its ~350 BOEpd target and that's all that should matter to investors. BRFN will get sorted out and it will give the company optionality and thousands of additional teir-1 drilling locations to exploit for decades to come.

My advice is chill, collect your dividends and wait for the re-rate once a BRFN deal is announced, the dividend is increased and the hedges fall off. With its balance sheet strength and the ongoing global supply backfrop, it's inevitable IMO.

As always, if you don't like the direction management is taking, you're free to move on to greener pastures. It's really that simple.

MyHoneyPot wrote: It is mind boggling, and there is a massive play area to the south of Kakwa that has not been exploited, and has been removed from the Kakwa maps. 

Really with the political enviroment in BC, and the lack of well licenses available there when is existing production of Treaty8 lands be put into question. 

Management sold off the Kakwa transportation, they have spent money of Attachie + Sunrise with no treaty8 agreements in place and are telling the first nations it is their #1 project. 

You have plants running at 40% of production, 1/2 cycle production gains, and they tell you they are working in the best interest of the shareholders, keep production flat as oil was $120 WTI and condensate approached $150 canadian a boe. 

Management is incompetant, that is the answer to your question. 

IMHO


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