Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ARC RESOURCES LTD. We currently have 23 research reports from 1 professional analysts.
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ARC RESOURCES LTD
ARC RESOURCES LTD
Reports 2Q16 Results, Strategic Cardium Acquisitions, and Revised Guidance
29 Jul 16
ARC reported second quarter results that modestly trailed consensus expectations, with production impacted by pipeline restrictions in the quarter, while cash flow came up short due to the lower volumes and cash taxes in the period. More importantly the Company entered into two strategic acquisitions in the Cardium at accretive metrics that further builds out its working interest in the region, while allowing for increased control over the pace of development. The Board of Directors has approved a $60 mm increase to the E&D capital program, and coupled with the aforementioned acquisition, results in a bump to average annual production guidance to 118,000-122,000 boe/d. Incorporating the acquisitions and new guidance results in positive moves to our forecast. In keeping our 2017e EV/DACF multiple intact, we have increased our target price to $27.00 per share and have maintained our Outperform ranking.
2Q16e Quarterly Preview
26 Jul 16
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
28 Jun 16
We recently had the pleasure of hosting the ARC management team to run through the Company's latest presentation. Management remains focused on maintaining the Company's balance sheet strength with targeted debt to cash flow in the range of 1.0x to 1.5x. The Company remains active in terms of its hedge book and continues to layer on hedges through to 2020 in conjunction with planned infrastructure build outs.
Intermediates, Mid Caps & Small Cap Commodity Price Update
23 Jun 16
With this publication we highlight forecast revisions associated with our commodity price update (Natural Gas Update; Crude Oil Update), reaffirming a view of commodity price recovery in 2017e. In the interim until then, 2016e Canadian oil price realizations are up ~11% in the synthetic and Edmonton Light streams, with heavy WCS crude up ~20% which is amplified by Canadian oilsands output curtailments. While 2016e Canadian natural gas prices are projected to be ~20% lower, we expect much of this effect to be mitigated by strong hedging positions this year, and remain focused on price recovery next year with very strong increases reflected in both the strip and our revised forecast. Overall, broad valuations are flat to slightly higher coming out of this exercise, with oil/ liquids levered entities observing the highest 2017e CFO uptick. We remain constructive on the space, though the market will need to look past a trough of potentially weak pricing this summer.
Reports Strong 1Q16 Results
29 Apr 16
ARC reported strong first quarter results that came in ahead of both our expectations and the consensus in a difficult period that saw a precipitous drop in commodity prices.The Company capped off the first quarter in a position of strength both financially and operationally, with a pristine balance sheet and the Company’s Montney assets exceeding expectations. Management has maintained its previously announced 2016e guidance, although given first quarter results we would not be surprised to see positive revisions to annual guidance as the year progresses. First quarter results remain supportive of our view on this name as one of our top ideas in the yield space, and thus we have maintained our Outperform ranking along with our $22.00 per share target price.
27 Mar 17
Elecosoft* (ELCO): Steadily building profits (CORP) | Bioventix* (BVXP): Interim results lead to upgrades (CORP) | Hurricane Energy (HUR): Halifax discovery (BUY) | KBT Business Technology* (KBT): interims and contract win (CORP) | Independent Oil & Gas* (IOG): Licence updates (CORP)
GMP FirstEnergy ― UK Energy morning research package
27 Mar 17
Amerisur Resources (AMER LN)6; HOLD, £0.30: Reduced 2017e production outlook and year-end 2016 reserves | Condor Petroleum (CPI CN)8 ; BUY, C$3.50: Reports 4Q16 results and remains on track for first production from Turkey in mid-2017e | Hurricane Energy (HUR LN) (not covered): Halifax well update in the UK | Cairn Energy (CNE LN): BUY, £2.90: Update on the VR-1 well in Senegal by Far (FAR AU) (Not covered) | Royal Dutch Shell (RDSA/B LN) (not covered): Divestment of Gabonese assets
Strong trading leads to upgrades
22 Mar 17
On the back of today’s positive trading update and slightly upgraded profit forecasts for FY2017, FY2018 and FY2019 we have reviewed our DCF analysis. This has led to an increased DCF valuation per share of 1500p (from 1200p) which we have made our new target price (from 1200p). Both TFP and JC Paper have contributed to the upgrades shown in the table below as have favourable currency movements. With the potential for further upgrades due to capitalising 3DP costs to come we maintain our Add recommendation.
Small Cap Breakfast
21 Mar 17
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.