Recently reported earnings for ARX set all-time records for average production and free funds cash flow. We like that cash reserves are growing while they aggressively repay debt and buy back shares, while supporting a 36% ROE. The dividend is backed by payout ratio under 70% of free cash flow. It announced plans to sell natural gas under long term contract that will attract LNG prices from Japan and Korea. We recommend a stop-loss at $13, looking to achieve $24 - upside over 48%. Yield 3.1%
Commodity cyclical. Commodity is low again because of the warm weather. Thinks a lot of that is already in the price. Stock should be $25-30. Hoping the commodity tightens up over the summer.
Share price off significantly, by about 25%. Huge amount of undeveloped land. They own their own infrastructure. Buy on the dip, especially under $15. Premier nat gas company to own. Upside on LNG Canada export. Yield is 4.03%, growing.
(A Top Pick Jan 28/22, Up 18%) Gas weighted company (Condensate as well).
Recently sold shares.
Blueberry dispute recently solved, but has been a concern.
20 years of tier 1 drilling inventory.
He targets $29. Trades at 2.7x 2024, half its peers' PE. Excellent balance sheet and 3% production growth. They just raised their dividend by 25%. A great energy name.
It is very inexpensive and is returning free cash flow to shareholders.. It is very dominant in the Montney area and could be a player in LNG. A well run company with a strong balance sheet. The dividend is up 25%. Buy 14 Hold 0 Sell 0 (Analysts’ price target is $25.00)
(A Top Pick Nov 05/21, Up 50%) Excellent name for natural gas exposure.
Very well run company with good management.
Returning lots of capital to shareholders.
He has a model price of $59.56, 207% upside, but hold on. Analysts are stuck. Could be top of the cycle. More of a sell than a buy here. Top is $21.15. If we ever got a pullback to $15, he'd look at it as a trade. Reports tonight.
(A Top Pick Nov 05/21, Up 47%) A gas stock. It is in arbitration with First Nations and is waiting for a resolution. Much of its free cash flow is used to buy back shares at a rate of 1.2% per month. A super high quality stock with 80% upside and 20 years of running room.
There's downside risk to oil to below $80/barrel. A global or North American recession will pressure oil. They don't pay a good enough dividend; he prefers dividend stocks in this environment.
Very well managed company with excellent inventory depth (several decades).
Using NCIB to buy back stock aggressively.
Seeing major upside for stock.
Should be debt free by the end of next year.
Expecting a 5x multiple equates to $39 share price (100% upside).
Likes it as a company. Great numbers. More gassy than oily. Well positioned if we can ever get a pipeline to the West Coast. Well run. Paid down debt. Maintained production capability. One of the top energy stocks in the country.
Highly recommended. There will be fresh upward pressure on gas prices going into the winter. The States has an easier time shipping LNG to Europe and, hopefully, Canada will get its act together to benefit as well.
Excellent management team that is over conservative at times.
Has 30+ years of inventory(reserves). Share price trading at 2.5 years of inventory.
Native reserve dispute expecting to be resolved soon.
SIB (significant issuer bid) is expected soon (10% of shares).
Looking to be debt free in Q4 this year.
Expecting a 5x multiple on the share price (100% upside).
(A Top Pick Aug 23/21, Up 120%) The only thing that's worked this past year has been energy. VII Generations acquisition was well timed. Go-to player in nat gas and light oil. Getting later in the cycle, still a decent play. Generating great cash.
Arc Resources Ltd is a Canadian stock, trading under the symbol ARX.TO (previously ARX-T on Stockchase) on the Toronto Stock Exchange (ARX-CT). It is usually referred to as TSX:ARX or ARX.TO
Is Arc Resources Ltd a buy or a sell?
27 expert ratings on Arc Resources Ltd (ARX.TO) in the last 12 months: 18 Buy, 2 Hold, 7 Sell. Latest rating: TOP PICK by The Panic-Proof Portfolio (Stockchase Research) on Feb 16, 2023. Read the latest stock experts' ratings for Arc Resources Ltd.
Is Arc Resources Ltd a good investment or a top pick?
Recently reported earnings for ARX set all-time records for average production and free funds cash flow. We like that cash reserves are growing while they aggressively repay debt and buy back shares, while supporting a 36% ROE. The dividend is backed by payout ratio under 70% of free cash flow. It announced plans to sell natural gas under long term contract that will attract LNG prices from Japan and Korea. We recommend a stop-loss at $13, looking to achieve $24 - upside over 48%. Yield 3.1%
(Analysts’ price target is $23.78)