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ARC Resources Ltd
TSX:ARX

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ARC Resources Ltd Logo
ARC Resources Ltd
TSX:ARX
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Price: 23.4 CAD 1.17% Market Closed
Updated: Mar 2, 2024

Intrinsic Value

ARC Resources Ltd. engages in the exploration, development and production of crude oil and natural gas. [ Read More ]

The intrinsic value of one ARX stock under the Base Case scenario is 4 686.64 CAD. Compared to the current market price of 23.4 CAD, ARC Resources Ltd is Undervalued by 100%.

Key Points:
ARX Intrinsic Value
Base Case
4 686.64 CAD
Undervaluation 100%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Fundamental Analysis

Record Earnings and Robust Growth Strategy
2023-Q4 Earnings Call

Record Earnings and Robust Growth Strategy

Amid a 28-year production high, the company saw 6% growth per share in the fourth quarter and achieved $700 million in cash flow, reflecting strong margins due to low costs and balanced commodity mix. It pledged ongoing free cash flow return to shareholders, with $155 million returned last quarter. The year culminated in a 23% return on capital, with an ambitious plan to maintain such profitability. A $1.8 billion investment for 2024, including $500 million for Attachie Phase I, aims to involve Attachie in the LNG Canada project, anticipating average production to hold steady at 355,000 BOEs per day. By 2025, the completion of Attachie Phase I will boost profits, leading to heightened dividend growth and share repurchases. The strategic focus is to triple free cash flow per share over the next 5 years through careful investment and capital return.

Financials

Balance Sheet Decomposition
ARC Resources Ltd

Current Assets 736m
Cash & Short-Term Investments 2m
Receivables 563m
Other Current Assets 171m
Non-Current Assets 11.2B
Long-Term Investments 20m
PP&E 10.9B
Intangibles 248m
Other Non-Current Assets 30m
Current Liabilities 985m
Accounts Payable 656m
Accrued Liabilities 52m
Other Current Liabilities 277m
Non-Current Liabilities 3.8B
Long-Term Debt 2.1B
Other Non-Current Liabilities 1.7B
Efficiency
Fundamental Scores

ARX Profitability Score
Profitability Due Diligence

ARC Resources Ltd's profitability score is 71/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Years Revenue Growth
Positive Gross Profit
Positive Free Cash Flow
Positive Operating Income
71/100
Profitability
Score

ARC Resources Ltd's profitability score is 71/100. The higher the profitability score, the more profitable the company is.

ARX Solvency Score
Solvency Due Diligence

ARC Resources Ltd's solvency score is 60/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
Low D/E
Long-Term Solvency
Average Altman Z-Score
60/100
Solvency
Score

ARC Resources Ltd's solvency score is 60/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

ARX Price Targets Summary
ARC Resources Ltd

Wall Street analysts forecast ARX stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for ARX is 27.03 CAD with a low forecast of 25.25 CAD and a high forecast of 33.6 CAD.

Lowest
Price Target
25.25 CAD
8% Upside
Average
Price Target
27.03 CAD
16% Upside
Highest
Price Target
33.6 CAD
44% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

ARX Price
ARC Resources Ltd

1M 1M
+15%
6M 6M
+11%
1Y 1Y
+55%
3Y 3Y
+236%
5Y 5Y
+191%
10Y 10Y
+20%
Annual Price Range
23.4
52w Low
14.6916
52w High
23.44
Price Metrics
Average Annual Return 28.01%
Standard Deviation of Annual Returns 57.6%
Max Drawdown -70%
Shares Statistics
Market Capitalization 14.2B CAD
Shares Outstanding 597 826 000
Percentage of Shares Shorted 1.13%

ARX Return Decomposition
Main factors of price return

What is price return decomposition?

Company Profile

ARC Resources Ltd Logo
ARC Resources Ltd

Country

Canada

Industry

Energy

Market Cap

14.2B CAD

Dividend Yield

2.91%

Description

ARC Resources Ltd. engages in the exploration, development and production of crude oil and natural gas. The company is headquartered in Calgary, Alberta. The firm's activities are focused on the exploration, development and production of unconventional crude oil, condensate, natural gas and Natural gas liquids (NGLs) in western Canada. The firm's assets are located in northeast British Columbia and northern Alberta in the Montney formation. The Company’s operations in Northern Alberta are located near Grande Prairie and include Kakwa and Ante Creek. The firm's operations in northeast British Columbia feature low-emissions assets and a network of owned-and-operated facilities that are connected to third-party egress and hydroelectricity. The Company’s operations in the Northeast British Columbia region include Greater Dawson, Sunrise and Attachie. The Greater Dawson operating area includes Dawson Phases I, II, III and IV and Parkland 3-9.

Contact

ALBERTA
Calgary
1200-308 4 Ave SW
+14035038600.0
https://www.arcresources.com/

IPO

1996-07-11

Employees

422

Officers

President, CEO & Director
Mr. Terry Michael Anderson B.Sc., P.Eng.
Senior VP & CFO
Mr. Kristen J. Bibby B. Comm., B.Com., C.A., CPA
Senior VP & COO
Mr. Armin Jahangiri P.Eng.
Senior Vice President of Marketing
Mr. Ryan Victor Berrett B.Mgmt., M.B.A.
Senior VP & Chief Development Officer
Ms. Larissa Marianne Conrad P.Eng.
Senior Vice President of People & Corporate
Ms. Lisa Ann Olsen B.A.
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Manager of Capital Markets
Mr. Dale Lewko C.F.A.
Corporate Secretary
Mr. Grant A. Zawalsky B. Comm, B.Com., L.L.B.
VP & Controller
Ms. Katherine Joyce Gomes B.Com., C.A., CPA
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See Also

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