ARC Resources Ltd T.ARX

Storm Development Corp. acquiring assets from ARC Resources

[silkos]

An application has been filed with the AER to transfer 56 wells, 13 facilities and 21 pipelines from ARC Resources Ltd. to Storm Development Corp.

What would be the reason behind this move? Care to speculate?

https://boereport.com/2023/03/06/storm-development-corp-acquiring-assets-from-arc-resources-a-use-case-for-boe-intel/

[Tothemoon2]

Non core assets.  No new wells drilled there in over 5 years.  Probally a nothing burger unless Arc includes all their land holdings in the area but I'm just guessing.

[Quintessential1]

CONSOLIDATED BALANCE SHEETS (unaudited) As at Cdn$ millions December 31, 2022 December 31, 2021 ASSETS Current assets Cash and cash equivalents 57.1 — Inventory 6.7 22.3 Accounts receivable 863.2 672.0 Prepaid expense 52.5 35.6 Risk management contracts 0.9 0.1 Assets held for sale 6.1 — 986.5 730.0 Risk management contracts 13.3 — Long-term investment 14.5 2.5 Exploration and evaluation assets

[MyHoneyPot]

I would speculate that they are already a little bit capex heavy with a 1.8 billion capital budget for 2023. They may be trying to raise some cash to offset the Attachie expense that would be incurred in the 2023 year to take a little pressure off the balance sheet.  I think they want to sell those asset ahead of sanctioning the Attachie build out.  IMHO

[Quintessential1]

Sounds like a good plan.  Sell those assets let the $300 M in one-time cap-ex items roll off the budget and sanction Attachie in 2024. GLTA ARX BULLS