Arc Resources Ltd (ARX-T)

Metals and oil/gas are his favourite areas. Arc is heaver in natural gas, which is doing well now given the cold weather. The chart has moved strongly up, then pulled back and find support at the old break-out point. Add shares at the break-out point.

Will benefit along with others from LNG Canada. Wet gas, so you get the NGL plus the condensate. Long reserve life of assets.

Probably his favourite energy stock. Great chart. Consolidating, will probably break out at some point. As long as it doesn't break the low around $22.50, stay in the trade.

We feel the outlook for natural gas in the coming year is met with moderate growth, and potential lots of volatility. Underlying global natural gas demand should increase, and the completion of Canada's LNG pipeline to the Pacific could improve ARX's profitability. Its recent momentum has been positive, and it offers a decent yield (2.7%) with a solid valuation of 10.5X forward earnings. Growth is expected to be decent in the coming years, and its profit margins are healthy. We think it looks OK here, although, it is expected to be volatile and it needs to resume its topline growth. For an investor that is bullish on the outlook for natural gas, we would be OK accumulating here.
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Just broke out, almost an anomaly in the oil patch. Exceptional chart; looks very, very good. After a beating in 2022, chart for nat gas is now in a holding range and at the top of that range. Yield is 2.4%.

Has become the go-to Canadian natural gas name, and for good reason. Attachie will add to its growth, and incremental FCF will result. Most FCF is being returned to shareholders. Several decades of inventory. Very conservative management and board. Very strong balance sheet. 

Long-term exposure to rising natural gas prices. He's also bullish on its production of condensate. Yield is 2.5%.

A lot of oil stocks are moving in kind of a range. This one broke out of the range and is not pulling back to the old neckline. He feels that based on a longer history of moving in an uptrend it is OK to start stepping in. He doesn't expect oil to do much until the winter.      Buy 17  Hold 0  Sell 0

Core holding in portfolio. Bullish on energy for the long term. Excellent company that is very well run. Steady dividend that is reliable. New projects are underway and being developed withing budget. Would recommend holding for the long term. Believes natural gas prices will increase over time, and is a clean burning fuel. 

Owns large percentage in fund. Very stable and conservative business model. Very strong cash flows with low breakeven prices. New projects going well. 20 years of stay flat inventory. Low natural gas prices don't affect company too much. Expecting major share price appreciation. Can sleep easy at night. 

Both are the gold standard in nat gas. TOU slightly underperforms. Valuations of both are stretched. ARC has done well with some projects that were brought onstream. Owns TOU now, and Arc in the past. Both are good to buy and will perform. The price of nat gas is low, so this will benefit will the price rises.

Very strong condensate production, in addition to gas. Exceptionally conservative management team, proven and tested. Not making a bet on M&A, but this would be a primary target. Bringing on a big project, has more on the back burner. Discount to US peers, though surpasses them on quality and quantity. Yield is 2.6%.

11-14% free cashflow yield. Not as spicy in terms of upside of 30-50% 1-2 years out. Ongoing modest dividend, share buybacks, and production growth.

He owns both. Both are big into natural gas. Likes both and they will do well.

It is levered to both oil and gas and he thinks the floor comes up for gas. It can grow production with the existing infrastructure so there is no need to make acquisitions, and in fact it could be an acquisition target. There are good opportunities in Western Canada and Western Canada is overdue for something to happen. It is buying back shares and pays a 3% dividend.         Buy 15  Hold 1  Sell 0

With acquisition of Seven Generations, now more diversified. Valuation's looking more attractive. A good play in the sector, better even than TOU with its extended valuation. ARX has more upside on valuation, growth, and production.

High quality company with very good assets. Large shareholder in company. LNG expansion on West Coast will be very good for company. Company under valued compared to overall value of assets.