Stock price when the opinion was issued
Is a long-term hold. It's focused on gas and natural gas, which boasts great fundamentals. Arc is the top nat gas developer in Canada and owns a lot of its infrastructure, so are vertically integrated. The 2.93% dividend and cash flow are growing. Buy below $25, if you can.
(Analysts’ price target is $32.42)ARX has been showing nice momentum recently, and it trades at a decent valuation of 11X forward earnings. Its recent acquisition of Montney assets in Kakwa from Strathcona Resources is a significant strategic move, and it is expected to enhance ARX's production capacity and extend its inventory duration. To finance this acquisition, it plans to use a combination of a new $1.0B two-year term loan and existing credit facilities. After the acquisition, it is expected to have a net debt around $2.8B or more. We like the acquisition and for a long-term position, we would be comfortable buying here.
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He's sort of like an inventory manager with the 20-30 stocks in client portfolios. His job is to own inventory that people care about today. He focuses on themes that he thinks are in the process of being revalued favourably, and perhaps in sectors that are less owned but showing something changing for the better. He's looking for the best company he can find, with no fundamental risks if it doesn't happen immediately, but where the multiple will start to expand if people look more closely at the group.
Leading Montney operator and low-price producer for natural gas. Great balance sheet, especially important because he thinks financing costs are going to keep rising. Great 3-year dividend growth of over 35%. Catalyst is the opening up of the LNG markets globally. Another positive change is the ramping up of Attachie over the next 4 years. Demand for power will fuel demand for nat gas. Rising price for nat gas + increased multiple could = significantly higher share price. Yield is 2.58%.
One of the top beneficiaries of the LNG market. Just started shipping overseas, and this will grow over time. Improving ROC last couple of quarters. Valuation is 6.4x EV/EBITDA, not worrisome. If you believe in LNG, this is your go-to name.
3-year CAGR is 17%, 1-year is 21% including dividends. Yield is 2.7%, low payout ratio, dividend is growing.
Nat gas prices will go up, based on European demand for Canadian gas. Is a long-term play. Is the best in this group. Has made money for him in recent years. Is one of his few long-term holds.
(Analysts’ price target is $34.07)