ARC Resources Ltd T.ARX

Nice to see the market coming to its senses

[Trapped]

Today's price action doesn't even scratch the surface in terms of moving closer to ARX's intrinsic value. That being said, it's always nice when the market shakes its head and gets reminded of the fundamentals: earnings growth, low / manageable debt, efficient operation and decades of top-quality inventory - not to mention ARX's lucrative long-term supply contracts providing access to global markets.

September truly is the worst month and October's typically not much better.

2024 was always going to be a thankless year, with heavy Capex and not much in terms of incremental earnings to show for it in return. That changes soon.

It will be interesting to see what comes out of Attachie's field tour next week. Lots of momentum on the horizon and prodigious FCF in 2025 and beyond. At the risk of sounding like a pumper, we're almost there.

Cheers and GLTA ARX Bulls.

[ztransforms173]

- MIRROR, MIRROR on the wall; who is the GREATEST of them all ? Allegory: the QUEEN in Snow White FAIRY TAIL z173

[robert41]

I wonder if they put some of that 80 million they have towards buying some shares at these prices... nice move of what was a gift of a share price.

[Trapped]

Yes, it looks like they spent roughly half of it in August and it would be great if they put the rest to work this month. Here's hoping, because I don't think we'll stay in this range much longer.

[Quintessential1]

Agreed at price targets of $34 per share being floated this is again money well spent Trapped! ARX up 15% and paying out 3% for 2024 this is the best thankless year ever! The worst, I believe, is behind us with rate cuts stimulating the economy and increasing demand. 2024 is not over yet so plenty of time to positively add to ARX ROI numbers before 2025 knocks them out of the park. Got my POM

[robert41]

Hey trapped how can you tell that it looks like they spent half the 80m in August. Thx

[Trapped]

I don't have it in front of me but, as I recall, they bought back roughly 1.8M shares in August, which would bring us to about half of the proceeds from the recent non-core asset sale. I'll be eager to see the Sept. Buybacks later next week :)

[robert41]

Ur right  million  shares bought in august definitely an uptik on july

[Quintessential1]

You're correct Trapped.  ARX bought back 1,868,300 shares in August. That's 1.6 million more than previous months buybacks and effectively doubles the YTD buybacks. As a longterm shareholder return strategy it makes sense if 2024 was going to be a flat year buying back now and increasing the dividend when production and FCF increases later will pay off in the long run.  

[Quintessential1]

With the middle-east heating up I really hope that ARX spent the other half of that non-core asset cash in September.  Just goes to show you can't time buybacks.  GLTY and ALL ARX BULLS 

[Trapped]

So true, Quint. I was watching for Sept. buybacks today and no new yet. I really hoped they hammered them in the low $22's. Cheers everyone!