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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 Quintessential1on Apr 07, 2023 2:26pm
160 Views
Post# 35384794

RE:Buybacks VS Dividend

RE:Buybacks VS DividendEvrybody likes dividends including me and ARX just increased theirs by 25% this year.

Increasing it to $.20 would be 33% or a third more than it is now.

The recent buybacks proves that ARX has ample FCF for shareholder returns.

This tells me that the dividend is safe here where other producers are in jeopardy of cutting theirs.

Buying back shares now is like paying down debt.  There is about 615 million shares left in the float.

The NCIB (thanks to GunnerG) is 22.3 million  and finishing that off would get ARX to 593 million.

That would leave 43 million shares to get to 550 million which might be doable this year.

That would make about 71 million shares repurchased this year. 

If they increased that dividend to $,20 then they would save $.20 x 71M =$14 200 000 in divy

Divided by the remaining 550M shares is $.025 or half of the increase paid for in saved divy..

And do not forget about the 2% buyback tax starting in 2024. 

Buyback in 2023 increase dividends in 2024 

GLTY and all ARX BULLS


ReitsRus wrote: As much as it's good to see Buybacks it's nice to see Dividend increases even if they are Small. A bump to .20 would be nice to see after next Quarter. 


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