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 > Q1 hedging gain?

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Comment by Quintessential1on Mar 30, 2023 9:55am

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Post# 35368948

RE:RE:RE:RE:Q1 hedging gain?

Right on GunnerG. Like i have said many times before:

Easy hold!

GLTA ARX BULLS

GunnerG wrote: Great post Quintessential1.

There are many reasons why companies hedge but MHP is always looking in the rear view mirror looking for the negative. They hedge at $6 and the price goes to $7, $8, $9 or $10; he complains about what they have lost with the benefit of hindsight.

He is laser focused on Kakwa and condensate to the exclusion of the other plays, agreements and obligations they have as an ongoing business.

Price of NG goes down, we need to focus on Kakwa. The price of NG goes up, we need to focus on Kakwa. No one can win with this guy.

I know what mgmt has planned and I am more than happy to stay invested. Go ARX.

Quintessential1 wrote: Yeah I think he's trying to say that they did hedge at six dollars so a hedging gain is in the cards.

Also they might hedge at a price that will cover plant costs.

The lights need to stay on, leases need to be paid and contracts have to be filled.

They also can't shut in the gas that comes with the liquids. I don't think storage is an option

The liquids should do the heavy lifting until the summer spike and fall heating ramp up.

LNG and summer power generation should keep NG profitable.

GLTA ARX BULLS

MyHoneyPot wrote: Hedging at the bottom of the cycle makes no sense, they have already done that once and it cost them 2 billion dollars. They just need to slow down gas, and focus on liquids rich plays that are economical all the time.

They have tons of opportunity at Kakwa, and they just need to slow down gas production when it doesn' pay.

If you going to hedge you hedge when gas is six dollars not when it is two dollars.

IMHO