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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 Quintessential1on May 09, 2024 9:12pm
258 Views
Post# 36032629

Disappointed!

Disappointed!To borrow a Kevin Kline line...LOL.

Disappointed that there appears to be no dividend increase whatsoever but they run the company and like GunnerG says, If the numbers didn't justify it then they didn't, plain and simple.

Hopefully this report by CIBC Equitity Research will take the sting out of a little:

"ARC posted a solid quarter, with production, cash flow and capital spending all beating expectations. Management indicated that its Attachie project remains on track and on budget for commissioning in Q4/24, reaching full capacity in Q1/25. The company also guided to a strong H2/24 production outlook, which in our view offsets some of the production weakness expected in Q2/24, with turnaround activity at Dawson and Kakwa. We increase our price target to $31 from $30 on the cash flow increase for 2024E. We continue to see ARX as a top idea under our coverage list due to an appealing valuation, visible growth opportunities, and returning 100% of free cash flow to shareholders. The stock trades at a 2024E EV/DACF of 5.8x and an FCF yield of 6%, versus gas-weighted peers at 5.5x and 2%, respectively."

Hopefully the market likes it as much as they do.

GLTA ARX BULLS

 


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