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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 > ARX well Positioned to Lead in ESG - a Premier Gas Producer
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Post by MyHoneyPot on Mar 17, 2023 10:20am

ARX well Positioned to Lead in ESG - a Premier Gas Producer

BC, truely does fit into the Global World picture for LNG, when you have liquification happening in a northern climate like Kitimat BC, and you have gas production feeding it primarily from BC, where all the gas plants can be electrified using Hydro, where in the world is their lower GHG emissions for Natural Gas?

So when companies want responsibly produced gas, who will they be talking to none other than ARX. A premium is paid for feedstock for LNG plants, why not get the lowest GHG gas to fill the plant so that we can provide aid to Europe in efforts for a Green Transition. 

Do you think for one moment that LNG from Qatar, or the burnt lanscape of the Perminan basin can compete with clean gas/LNG from NE BC.

ARC is miles ahead of the competation in this area, and you really will have a hard time convincing a mid streamer to do it for you, unless your willing to incurr a big cost with respect to processing. 

ARC has done a great job in positioning themselves as a responsible energy provider, supporting the Green Transition with the cleanest burning natural gas, in a market that pinches their nose when they are forced to buy your product, because there is no other choice. 

ARC should trade at a premium to its piers, without any Topaz royalities on this production like TOU, with an efficient and 100% owned electrified infastructure, and the largest Canadian producer of Condensate a premium product used for moving heavy oil.

Every BOE of ARX's production is worth 60% more on a net back basis than TOU.

359,730 *1.6 = TOU boe equalivent = 575,568 (ARX # boe based on equalivent TOU netback per boe)

In the fourth quarter of 2022 TOU produced 511,590 

If gas did not spike in December, TOU would not have had the windfall CF in Q4, in Q1 this year ARX will trounch TOU in terms of free cash flow.

ARX is currently trading at a 50% discount to the TOU price yet will will generate more FCF.

IMHO
Comment by Quintessential1 on Mar 17, 2023 3:27pm
I think we all appreciate the effort to find the good here and ARX ESG is a great selling feature. The math is a little dubious (trading at a 50% discount to TOU? closer to  300%?) That being said is this how the stock rerates?  We are seeing a 33% drop in commodity prices. ARX is holding at about $15 range fairly well.  What happens when those commodty prices go back up?   ...more  
Comment by angelnicky on Mar 18, 2023 11:18am
There is a high risk that oil will go down in a recession. Insitutions are in the process of  revaluing companies stock prices based on new oil and gas forecast prices and demands Downgrades could easily be 20 to 40 percent  from current estimates Floodgates may open next week Oil and gas run is over Eric Nuttal wasnt predicting a recession and or bank collaspes, suspect he will now re ...more  
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