CIBC
ARC RESOURCES LTD. Journey To Attachie: Key Tour Takeaways
Our Conclusion We attended ARC’s Attachie tour, hosted by the company’s senior management team, on October 2. We left with a greater appreciation of the future scale of this asset. We also have a better view of how the company is likely to proceed in developing subsequent phases of Attachie. With field activities still under way, we believe the commissioning of Attachie Phase 1 is likely to be imminent, and should see this asset ramp up volumes through Q4/24, consistent with previous messaging. We foresee potential upside to condensate volumes through Q1/25E with the contribution of Attachie, and believe the stock is likely to perform well over the near term due to increasing cash returns to shareholders. We maintain our $34 price target and Outperformer rating on the shares.
GLTA ARX BULLS