Market MoversOn The Rise ARC Resources Ltd. jumped after the release of positive fourth-quarter results, featuring stronger-than-expected production that led to a cash flow beat.
The Calgary-based company said it average 365,200 barrels of oil equivalent per day during the period, up 1 per cent from the previous quarter and above the Street’s forecast of 357,100 barrels. Cash flow per share of $1.16 topped the consensus estimate by 7 cents.
“ARX delivered strong Q4/23 results, with a slight production beat and Adjusted Funds Flow (AFF) and Free Cash Flow (FCF) well ahead of expectations on lower-than-expected cash costs and taxes,” said Scotia analyst Cameron Bean in a research note. “The company reiterated its full year 2024 guidance and provided Q1/24 production guidance that is in line with expectations. ARX also released strong year-end 2023 reserves results, with PDP bookings up 13 per cent per share on more than 2 times corporate recycle ratio and 2P reserves up 14 per cent per share on growth from Attachie, Kakwa and Sunrise. The Attachie project remains on track and on budget, with first volumes expected in late 2024. We continue to see ARX as a materially undervalued large-cap growth story with a clear catalyst on the horizon at Attachie.”