Arc Resources Ltd

ARX-T

TSE:ARX

7.34
0.08 (1.08%)
ARC was founded in 1996 as a royalty trust with the acquisition of 21 properties from Mobil Oil Canada. The acquisition was funded by an initial IPO of $180 million on the Toronto Stock Exchange.
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Analysis and Opinions about ARX-T

Signal
Opinion
Expert
BUY
BUY
March 26, 2021

A mispriced stock. It is being held back from forced selling from Seven Gens holders due to a mandate. This used to be the tier one quality name in Canada that traded at a huge premium. It is trading at 3.2x cashflow. Sign of an inefficient market. 8 - 8.5% weight for him. Would expect a 6x multiple, which would be a 119% upside.

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A mispriced stock. It is being held back from forced selling from Seven Gens holders due to a mandate. This used to be the tier one quality name in Canada that traded at a huge premium. It is trading at 3.2x cashflow. Sign of an inefficient market. 8 - 8.5% weight for him. Would expect a 6x multiple, which would be a 119% upside.

Eric Nuttall
Price
$7.580
Owned
Yes
TOP PICK
TOP PICK
March 23, 2021
He likes their merger with 7 Generations, and he's very bullish natural gas demand and prices driven by the post-Covid housing boom. They have some of the greenest natural gas, powered by green power in BC. They have an investment grade credit rating now, one of only three nat gas producers. Once this deals clear, ARX will see great performance. (Analysts’ price target is $11.22)
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He likes their merger with 7 Generations, and he's very bullish natural gas demand and prices driven by the post-Covid housing boom. They have some of the greenest natural gas, powered by green power in BC. They have an investment grade credit rating now, one of only three nat gas producers. Once this deals clear, ARX will see great performance. (Analysts’ price target is $11.22)
Ryan Bushell
Price
$7.315
Owned
Yes
TOP PICK
TOP PICK
March 18, 2021

Likes the merger with Seven Generations. As a senior player, it will get more recognition. Likes the balance sheet. Yield is 3.09%. (Analysts’ price target is $11.11)

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Likes the merger with Seven Generations. As a senior player, it will get more recognition. Likes the balance sheet. Yield is 3.09%. (Analysts’ price target is $11.11)

John Zechner
Price
$7.840
Owned
Yes
TOP PICK
TOP PICK
March 9, 2021

Extremely well run. The deal with Seven Generations creates greater scale and more capital flexibility. It's a major player in the Montney region. Production is expected to rise, with the combined companies means 340,000 barrels a day. He predicts this will be cash flow positive by year's end. It trades at 3-4x cash flow which will grow in coming years. Will enjoy synergies from the merger. He hopes that cash will quickly pay down debt. Carries a not-bad 3% dividend yield. (Analysts’ price target is $10.97)

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Extremely well run. The deal with Seven Generations creates greater scale and more capital flexibility. It's a major player in the Montney region. Production is expected to rise, with the combined companies means 340,000 barrels a day. He predicts this will be cash flow positive by year's end. It trades at 3-4x cash flow which will grow in coming years. Will enjoy synergies from the merger. He hopes that cash will quickly pay down debt. Carries a not-bad 3% dividend yield. (Analysts’ price target is $10.97)

Michael Sprung
Price
$8.120
Owned
Yes
BUY
BUY
March 5, 2021
Owned in the past but sold it in 2017. Has come back. They are one of the best producers of natural gas in the western Canadian sedimentary basin. A good pick if you want nat gas exposure.
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Owned in the past but sold it in 2017. Has come back. They are one of the best producers of natural gas in the western Canadian sedimentary basin. A good pick if you want nat gas exposure.
Brian Madden
Price
$7.800
Owned
No
TOP PICK
TOP PICK
January 7, 2021
Stockchase Research Editor: Michael O'Reilly With the economy looking to get back on its feet, this is a good entry for a high-quality energy producer. Trading at 85% of book value and with a PEG of 0.34, it is strong value now. We would buy with a stop-loss at $4.50, looking to achieve $8.75 -- upside potential of over 34%. Yield 4.64% (Analysts’ price target is $8.63)
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Stockchase Research Editor: Michael O'Reilly With the economy looking to get back on its feet, this is a good entry for a high-quality energy producer. Trading at 85% of book value and with a PEG of 0.34, it is strong value now. We would buy with a stop-loss at $4.50, looking to achieve $8.75 -- upside potential of over 34%. Yield 4.64% (Analysts’ price target is $8.63)
DON'T BUY
DON'T BUY
December 11, 2020

Natural gas is 80% of their production stream. Their liquids weighting is falling more than he thought in 2021. This erodes the free cashflow the company is able to generate. It is not as attractive relative to other names. It would have to fall 10% more from here to be a buy. Tourmaline is a better buy.

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Arc Resources Ltd (ARX-T)
December 11, 2020

Natural gas is 80% of their production stream. Their liquids weighting is falling more than he thought in 2021. This erodes the free cashflow the company is able to generate. It is not as attractive relative to other names. It would have to fall 10% more from here to be a buy. Tourmaline is a better buy.

Eric Nuttall
Price
$6.260
Owned
No
COMMENT
COMMENT
November 20, 2020
The momentum today will off-set tax-loss selling. Looking through the very short term, the dynamics of the sector are tighter. They had a disappointing 2021 forecast with more gas allocations. If you are bullish on natural gas, you could be a buyer, but he does not find it too compelling.
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Arc Resources Ltd (ARX-T)
November 20, 2020
The momentum today will off-set tax-loss selling. Looking through the very short term, the dynamics of the sector are tighter. They had a disappointing 2021 forecast with more gas allocations. If you are bullish on natural gas, you could be a buyer, but he does not find it too compelling.
Eric Nuttall
Price
$6.190
Owned
Yes
HOLD
HOLD
November 11, 2020
Cheap. Great balance sheet, low payout ratio. Modeling 56% EPS growth. Only problem is it's 70% natural gas. You can own it and it will continue to do OK.
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Arc Resources Ltd (ARX-T)
November 11, 2020
Cheap. Great balance sheet, low payout ratio. Modeling 56% EPS growth. Only problem is it's 70% natural gas. You can own it and it will continue to do OK.
Greg Newman
Price
$6.380
Owned
Yes
BUY
BUY
November 4, 2020
Purely natural gas. Prices are bumping up against 3-year highs. Longer term, gas has to be part of the energy solution; renewables can't carry the load yet. One of the best, really likes it at these levels. Environmental focus. Great long-term hold.
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Arc Resources Ltd (ARX-T)
November 4, 2020
Purely natural gas. Prices are bumping up against 3-year highs. Longer term, gas has to be part of the energy solution; renewables can't carry the load yet. One of the best, really likes it at these levels. Environmental focus. Great long-term hold.
Ryan Bushell
Price
$6.830
Owned
Yes
BUY
BUY
October 16, 2020
It has a high quality asset base. Historically, it traded at a massive premium. Current natural gas and oil prices, it is trading at a 10% free cashflow yield. Because the stocks are beaten down, you can get a pretty good deal if you believe oil prices will strengthen.
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Arc Resources Ltd (ARX-T)
October 16, 2020
It has a high quality asset base. Historically, it traded at a massive premium. Current natural gas and oil prices, it is trading at a 10% free cashflow yield. Because the stocks are beaten down, you can get a pretty good deal if you believe oil prices will strengthen.
Eric Nuttall
Price
$6.710
Owned
Yes
PAST TOP PICK
PAST TOP PICK
September 18, 2020
(A Top Pick Oct 01/19, Up 18%) He still likes it. You get premium asset quality, lower operating cost and low financial leverage. There was a CEO change. You get good exposure to natural gas. It is still inexpensive.
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Arc Resources Ltd (ARX-T)
September 18, 2020
(A Top Pick Oct 01/19, Up 18%) He still likes it. You get premium asset quality, lower operating cost and low financial leverage. There was a CEO change. You get good exposure to natural gas. It is still inexpensive.
Eric Nuttall
Price
$6.290
Owned
Yes
DON'T BUY
DON'T BUY
September 8, 2020

He used to own it to get exposure to Canadian natural gas. Assets and management are superb, and pays a fine dividend. However, at the start of March, he changed his outlook given how tough a sector energy was and gas demand was uncertain. He sold all his energy stocks and put his money into CNQ. Arc is still a good company. If you hold, be patient. When energy improves, so will Arc's stock.

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Arc Resources Ltd (ARX-T)
September 8, 2020

He used to own it to get exposure to Canadian natural gas. Assets and management are superb, and pays a fine dividend. However, at the start of March, he changed his outlook given how tough a sector energy was and gas demand was uncertain. He sold all his energy stocks and put his money into CNQ. Arc is still a good company. If you hold, be patient. When energy improves, so will Arc's stock.

Bryden Teich
Price
$6.080
Owned
No
PAST TOP PICK
PAST TOP PICK
August 18, 2020

(A Top Pick Jul 16/19, Up 12%) Despite a dividend cut, this is doing okay. He expects part of that dividend to come back. Natural gas has turned very positive for Canadian producers. Two big deals in the Montney involving CNQ and Conoco Phillips buying assets as gas prices rising on dropping US oil and gas production. He still likes Arc. Arc has a real ESG focus that will attract capital. We'll still need natural gas.

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(A Top Pick Jul 16/19, Up 12%) Despite a dividend cut, this is doing okay. He expects part of that dividend to come back. Natural gas has turned very positive for Canadian producers. Two big deals in the Montney involving CNQ and Conoco Phillips buying assets as gas prices rising on dropping US oil and gas production. He still likes Arc. Arc has a real ESG focus that will attract capital. We'll still need natural gas.

Ryan Bushell
Price
$6.630
Owned
Yes
BUY
BUY
August 6, 2020
He just bought some more this morning. Because of the sell-off, you can buy stocks that have a potential to double. You get natural gas and liquid gas. The quality of assets, balance sheet strength and free cashflow is good.
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He just bought some more this morning. Because of the sell-off, you can buy stocks that have a potential to double. You get natural gas and liquid gas. The quality of assets, balance sheet strength and free cashflow is good.
Eric Nuttall
Price
$6.140
Owned
Yes
Showing 1 to 15 of 634 entries

Arc Resources Ltd(ARX-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 10

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 15

Stockchase rating for Arc Resources Ltd is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Arc Resources Ltd(ARX-T) Frequently Asked Questions

What is Arc Resources Ltd stock symbol?

Arc Resources Ltd is a Canadian stock, trading under the symbol ARX-T on the Toronto Stock Exchange (ARX-CT). It is usually referred to as TSX:ARX or ARX-T

Is Arc Resources Ltd a buy or a sell?

In the last year, 15 stock analysts published opinions about ARX-T. 10 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is BUY. Read the latest stock experts' ratings for Arc Resources Ltd.

Is Arc Resources Ltd a good investment or a top pick?

Arc Resources Ltd was recommended as a Top Pick by Eric Nuttall on 2021-03-26. Read the latest stock experts ratings for Arc Resources Ltd.

Why is Arc Resources Ltd stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Arc Resources Ltd worth watching?

15 stock analysts on Stockchase covered Arc Resources Ltd In the last year. It is a trending stock that is worth watching.

What is Arc Resources Ltd stock price?

On 2021-04-13, Arc Resources Ltd (ARX-T) stock closed at a price of $7.34.