ARC Resources Ltd T.ARX

100 million Dry Gas 80 Mmcf

[MyHoneyPot]

The 100 million spend on plant expansion at Sunrise will add 80 Mmcf a day.

At $3 dollar gas that is equal to $240,000 dollars a day.

80,000 *3 = 240,000

So just to pay back the cost of the plant will be 417 day assuming no royalities, no Operaltion cost and if you can find and produce the gas for free, it bubbles to the surface. No drilling costs. 

Add in 10% royalities, op costs, transportation, etc.

Sunrise will make money then next time halley comment flys past the earth. (2061)

This is a waste of share holder money and will never make money anytime soon, more capital destroyed by this management team. 

IMHO

[iwpete]

What will management do? I have them earning about $1.50 cfps on the 9th of Feb. I suppose they could give themselves a raise and a truck load of new options I guess.

[Quintessential1]

$175 million for 353 MMcf/day   GLTA

[MyHoneyPot]

100 million for a gas plant, with no gas.  Sunrise is a marginal play, and when factor in the cost of money and the measly returns, it a joke.  Op costs, transportation, royalities, etc.  We have heard about this plant for years, 2024 is the proposed inservice date, however ARX does not do real project planning , their dates are measured in years and they keep missing them. 

[Quintessential1]

"With multi-layer development potential and approximately 10 trillion cubic feet of natural gas in place, Sunrise is the most efficient and profitable asset in ARC’s portfolio." https://energynow.ca/2021/10/setting-the-standard-nearing-net-zero-at-sunrise-arc-resources-2/ Its an expansion of this plant.  They are not spending 100 million on it and it won't take years. GLTA

[GunnerG]

Doesn't take MHP long to flip flop from ARX is good to they are terrible and spend everything in Kakwa.  He has no long term vision, but of course he is hanging onto his shares for the Q1 rerate he predicted.  LOL Is ARX not spending the money on Sunrise in anticipation of LNG Canada coming on stream.  Also, thought I read that the expansion would be ready in 2024 and ready to

[Quintessential1]

Yeah I don't know where he thinks that $175 million comes from but Sunrise will make 300 million this year.  It finances its own expansion and then yeah premuim gas sales to LNG Canada.   I also read that the Coastal Gaslink pipeline will be ready before LNG Canada and that LNG Canada will be taking some gas for testing and commisioning early.   "We anticipate

[GunnerG]

If Cedar gets a final investment decision this year, that would add ~150 bcf/y in 2027. Another market with premium prices I hope. Go ARX go.

[MyHoneyPot]

Can't build a business on hopes and prayers gunner. 100 million dollars to add processing capacity for 12,000 boe of dry gas is dismal. Especially when the resouce base is only 36 section, hardly big enough to call it a legitimate play.  The throw the BC regrulatory mess on top of all that, Treaty8, sitting on your hands for 3 years.  Sunrise is not an investment, its a make