ARC Resources Ltd T.ARX

NG pricing

[Farmer12]

July 15 AECO close 3.92
2014 average 4.05
2019 1.09
2020 2.05
I believe these figures are more or less accurate. Henry Hub pricing is also very attractive. The July ARC presentation with pricing sensitivities shows net debt/FFO falling to around 1.2 or 1.3 at $60 WTI and $2.90 Henry Hub. At current prices for gas and oil, if maintained, the ratio might fall to around 1. This company is rolling in the clover. Companies that were burned in the recent past are not rushing out to increase drilling as they did in the past. Some of the hedges ARC has, with the benefit of hindsight, are not that good. But there is still a great inflow of cash from these high prices, which look to remain high for several quarters.

[topdown99]

Yes Farmer , I have been saying that for months . The price of nat gas in relation to 2019 , 2020 and 2021 prices are not being reflected in either the share price or asset value . And now with this OPEC+ agreement , that should settle the oil market , Monday will be interesting . In 8 trading sessions we will get a real look at the earning potential of this combined enterprise . I am getting a

[MyHoneyPot]

To bad with 1010 MMCF processing capacity at Kawa and using on 477 million of that capacity, they are adding incremenatal processing capacity at sunrise, and at Greater Dawson.  To me it does not look like managment has a plan to optimize half cycle infastructure, and they simply want to build out full cycle projects.  Someone tell them the world has changed and you need to make sure