Issue 45 – Arc Resources – Reports a Strong Earnings Beat

ARC Resources (TSX: ARX) is a leading Canadian energy company based in Calgary, AB. ARC owns a diverse portfolio of assets in the prolific Montney play, located in Alberta and Northeastern B.C.


ARC reported third quarter/2021 results on November 5. On the earnings call, President and CEO Terry Anderson highlighted the quarter’s record production and free cash flow (FCF) per share, which topped the previous high mark set in 2006. Anderson also remarked that exceptional operational efficiencies and strong commodity prices provided tailwinds. ARC generated over $500 million in FCF during Q3 ($0.69/share), with most of the proceeds used to pay down debt and return capital to shareholders. The dividend was boosted by 52% to $0.10 per share. Management also confirmed that beginning in September, a $200 million NCIB (Normal Course Issuer Bid) was instituted, this based on management’s conviction that the value of the business is underappreciated by the market. The NCIB permits ARC to repurchase approximately 3% of the float via the public market.


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By Charles Marleau CIM® and William Mitchell CIM®

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By Charles Marleau CIM® and William Mitchell CIM®