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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

Post by MyHoneyPoton Jan 26, 2023 10:05am
161 Views
Post# 35247562

Gas Trading at $2.74 USA Condensate $90 U.S.

Gas Trading at $2.74 USA Condensate $90 U.S.90 / 2.74 =  32.8

1 boe is condensate is worth between 5-6 boe of dry gas, so what should ARX do. 

I know spend more money on Attachie a project that is not sanctioned?
Strive for 5% cost reduction at Kakwa in a 25% inflation enviroment?
Build more full cost/full cycle plants to process gas they can sell for $2.74
Spend 100 million on sunrise for bone dry gas
Spend more money, time and effort negociating with First Nations
Buyback more share when energy prices are high so they don't have to when their low
Rob shareholders of a meaningful dividend in high commodity price cycles

I see little value in the BC assets because of the native overhang, and the small postage stamp size of the play areas. Sunrise is only 35 sections, hardly a play that matters. 

ARX need a brain transplant in Management and that is what is holding this stock back. 

IMHO
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