ARC Resources Ltd T.ARX

Alternate Symbol(s): AETUF

Energy Oil & Gas E&P

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.

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ARC Resources Ltd > ARX is sitting on a lot of Cash - West Coast Gas Prices

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Comment by GunnerGon Jan 25, 2023 5:36pm

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Post# 35246483

RE:RE:RE:RE:ARX is sitting on a lot of Cash - West Coast Gas Prices

ROF

Touche Quint, TOUCHE.

He never sees the big picture. They own more than Kakwa and 120% return is not bad, LOL.

Quintessential1 wrote: By your own figures 800k per day over 365 days is 292 million.

So they spend $175 MM to make $292 MM. That would be a 66% return. Not really a money pit.

They also plan to increase production by 80 MMcf/d in 2023 so that is really 353 MMcf/d

353 MMcf/d * $3 * 365 = $386 MM for $175 MM which is a 120% return. Now its a money fountain

They also get better pricing when they start selling to LNG Canada

Cheer up the future is good.

GLTA

MyHoneyPot wrote: I just look at spending 175 million of Sunrise that is current producing 45,000 boe a day.

It a very small postage stamp size play area, 35 section of land producing 273 million a day.

A 3 dollar gas average for the year.

273 Mmcf *3 dollar gas = 800K a day.

Just to small for a standalone dry gas play that i would not pursue.

Spending $175 million on it in 2023 means it will add zero to the bottom line.

Cash pit.

IMHO