CIBC Q3/24 First Look: Headline Metrics Beat Estimates; Attachie Phase 1 Ramping And Dividend Increased Our Conclusion ARC posted a strong third-quarter update with Q3/24 metrics beating estimates, a 12% dividend increase, the commissioning of Attachie Phase 1, and favourable guidance revisions. Attachie is now ramping up production volumes with the completion of key infrastructure, which should put the company on strong footing for full ramp in Q1/25. ARC increased its quarterly dividend payment by ~12%, beginning with the December dividend to be paid in January. The 2025 capital budget is slightly lower than previous messaging, which should drive favourable revisions to consensus free cash flow estimates next year. While we believe many of these items were anticipated, we take the update as a positive for the shares. On our recent estimates, ARC trades at a 2025E FCF yield of 11% vs. gas-weighted peers at 5%.
GLTA ARX BULLS