Arc Resources Ltd (ARX-T)

EPS of 63c beat estimates of 53c. Revenue of $1.42B beat estimates of $1.38B. EBITDA of $881M beat estimates by 13%. Profit fell 27% despite higher production, due to lower prices. Production rose 4.7% year-over-year. Production matched estimates. EPS does call for lower income in 2025 but we think this is well-reflected in its low valuation. Overall, we are comfortable. 
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Among the best-managed in Canadian energy. Likes the balance of owning infrastructure, condensate production (prices could rise during tariffs) and LNG development on the west coast.

Excellent company. One of the better operated companies in the Canadian basin. Would wait on Trump tariff announcement before buying. Overall, a very good company. 

The price of oil always gets pulled around. He likes the natural gas side a bit more -- it's been through a bear market for years and now coming out of that. Over time, increased ability to get nat gas offshore and the world needs it.

But if you go 100% natural gas it's more risky. So, be more diversified but with a tilt to gas. He likes names that are cheaper than they ought to be. For him that's ARX or, for more torque, AAV.

Whether to sell depends on whether it's in a non-registered account, are you going to be paying tax, and how big is your position. 

Pays a nice dividend, boosted by 12%. Beat on Q3. Higher production, lower cost. Great assets and operators. 8% shareholder returns. Cheaper than it ought to be, with good production and cashflow growth. Good balance sheet. If you want an oil and gas name, this is one to really consider. But he's not keen on oil here.

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.