ARC Resources Ltd T.ARX

Debt

[northman]

Folks keep talking about ARC paying down their debt some more, but they only really have two long term notes outstanding with the following details:

1. $450MM, 2.3% interest, due in 2026
2. $550MM, 3.465% interest due in 2031

This is the entirety of their debt. There is absolutely zero change that these will get paid off before maturity given the interest rate, so don't expect their debt to go below $1bn for the foreseeable future. Also it would be foolish to pay these down given the absurdly low rates.

[Quintessential1]

I'm one of the folks that keep talking about paying down debt but I never meant that longterm debt. I was talking about the net debt which I will grant you I am not sure what it is entirely comprised of but assume that it gets paid out of either FFO or the revolving credit facility.  If it is entirely funded by FFO and has no interest charges then I'm ok with it but if it gets paid

[northman]

So here it is: 1. Interestingly I believe there is some kind of calculation error on their financial statements currently. Their long term debt should be $992 million, not $1.122 billion.Look at note 7 on their financial statements and compare it to how the Dec. 2022 calculation was made. Wonder what the heck is going on there. 2. Net Debt = short term + long term debt - cash and cash equivalents

[northman]

Whoops. My bad there is a syndicated credit facility number up there for $130mm making up the difference. New baby in the house... my brain is fried!

[Quintessential1]

LOL.  No worries its not like you said they had a 2.5 times EPS beat.  And my kids are grown. That 130mm is what I am wondering why they had to add and at what interest rate. Thanks for the short term or net debt explanation, if it doesn't cost I don't really care but I thought it did or could. GLTY and all ARX BULLS