Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Bullboard - Stock Discussion Forum 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... see more

TSX:ARX - Post Discussion

ARC Resources Ltd > Heat Wave = Increased Nat Gas Consumption
View:
Post by geezer21 on May 14, 2022 6:07pm

Heat Wave = Increased Nat Gas Consumption

https://www.zerohedge.com/weather/texas-power-grid-warns-record-demand-amid-back-back-triple-digit-heatwave

by Tyler Durden
Saturday, May 14, 2022 - 08:33 AM

 

Update (Saturday 0833ET): Texas' electricity grid operator asked customers Friday evening to conserve power this weekend after half a dozen generation plants were knocked offline amid another round of unseasonably hot weather. 

"On Friday afternoon, six power generation facilities tripped offline, resulting in the loss of approximately 2,900 MW of electricity," The Electric Reliability Council of Texas (ERCOT) wrote.

"At this time, all generation resources available are operating. 

"We're asking Texans to conserve power when they can by setting their thermostats to 78-degrees or above and avoiding the usage of large appliances (such as dishwashers, washers and dryers) during peak hours between 3 p.m. and 8 p.m. through the weekend," ERCOT said. 

Local newspaper Austin American-Statesman said one megawatt of electricity powers 200 homes on a hot summer day. "That means the 2,900 megawatts that went offline are enough to power about 580,000 homes," it noted. 

Heading into the weekend, ERCOT warned about a heatwave that would send electricity demand to record levels. With 2,900 MW of electricity removed from the grid as energy demand increases, this could strain the state's power system.  

PowerOutage.US shows that 14,000 customers in Texas are without power on Saturday morning. 

* * * 

An early summer heatwave pattern continues to boil parts of the Central and Southern Plains. This means parts of Texas will continue to roast with temperatures forecasted to reach triple digits next week.

The Electric Reliability Council of Texas (ERCOT), the state's power grid operator, is already warning of record energy demand next week as customers crank up the AC.  

Power consultant Doug Lewin, who actively monitors the Texas grid, told FOX 4 News Dallas-Fort Worth that triple-digit temperatures are very concerning because it's "still not even summer." 

On Tuesday, ERCOT reported power grid demand jumped to 70,703 megawatts, smashing the May 2018 record demand of 67,271 megawatts due to an early week heatwave. Now the next round of heat has the power grid operator concerned. 

ERCOT issued an operating conditions notice (OCN) for extremely hot weather. The OCN begins on Friday and lasts through next Wednesday. The grid operator ensured customers it had enough power to meet the demand spike. 

The National Weather Service's Austin/San Antonio office warns that "more triple-digit heat is in store for early next week."

High temperatures across the Dallas/Fort Worth areas are expected to flirt with triple digits on Sunday through next week. 

Back-to-back heatwaves hitting parts of Texas when power plants usually go offline for maintenance is concerning, though the latest from ERCOT is that they have everything under control.
Comment by Quintessential1 on May 15, 2022 4:06am
This would be good news if higher commidity prices would help. How much of production for 2022 is still hedged and therfore adversley affected by higher commdoity prices? GLTA
Comment by MyHoneyPot on May 15, 2022 11:10am
ARC's Gas Hedging Issues 448 Mmcf roughly is hedged at a price of about $3.20 Canadian. on the Gas side They produced in Q1 about 1280 Mmcf  35% of their gas is hedged at $3.20  It is equalivent to 75,000 boe/day of production roughly at $19 dollars a boe ( 22% of their total production) AECO GAS 200 Mmcf is hedged at AECO for a price of $2.44 Canadian The june contract at ...more  
Comment by Sunsurfer12 on May 15, 2022 12:17pm
Great analysis..agree
Comment by Sunsurfer12 on May 15, 2022 12:51pm
Only thing to add is..7 miserable more months of this and were down to minimal hedges
Comment by Quintessential1 on May 15, 2022 4:27pm
Thanks for the numbers.  i am sure they are as accurate as can be. I don't think the record hediging losses are in dispute but how much has already been accounted for? Just because there are hedging losses does not mean that they will not net a profit. I am also not sure it is afir to blame management for hedges that have reportedly come with the VII aqcquisition.  Were they not ...more  
Comment by Trapped on May 15, 2022 6:18pm
Agreed. People need to look at the big picture as opposed to trotting out the same tired, old arguments. ARX's hedges are yesterday's story. Commodity prices will remain elevated and we're just a couple of quarters away from a dramatically less hedged 2023. Markets look forward, not backwards. Bad investors are the only ones who do that because their judgement is clouded my their ...more  
Comment by Volkomm on May 16, 2022 3:14am
Nobody can argue that Arc's hedges are disastrous and a big headwind on the company at present time. With that being said we can't fault them for making those decision in the past when all companies were staring into a black abyss with no end in sight. What we can fault them for is if they continue to do it within this commodity environment. Only time will tell. I do believe Arc has ...more  
Comment by Quintessential1 on May 16, 2022 3:44am
Yes and you can bet that there are major investors that management has already explained these hedging issues to and that understand why they were put there and when they will fall off.  These are investors that do not have to ask questions on a conference call as they have management's ear whenever they want. They are obviously ok with it or you would see activism like with SU. This ...more  
Comment by angelnicky on May 15, 2022 8:19pm
It reaaly shows how greatly the losses are. The time hedges expire, oil and gas will be down as the recession will be here and the demand will shrink.
Comment by Trapped on May 15, 2022 10:24pm
It doesn't quite work that way, Dicky. The world needs energy, which makes it relatively price inelastic and that's why commodities usually outperform other asset classes in inflationary / recessionary periods. And did you hear China's Covid lockdowns will start to be relaxed next week? I know you won't be able to comprehend any of this, so try to have a relaxing night.
Comment by GunnerG on May 15, 2022 10:36pm
More numbers when you said previously all production was hedge loosing $11.35 per boe. Now your HEDGING that post. Wait three minutes for the new theory and set of numbers.  ROFLMAO
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities