Added to YB: 2025-11-17
Pitch date: 2025-11-14
ARX.TO [bullish]
ARC Resources Ltd.
+41.12%
current return
Author Info
The Financial Pen is a finance industry veteran hunting mispriced quality. They investigate misunderstood opportunities, spotlight overlooked bets, and deploy capital across U.S. and pan-Asian markets. Sign up for the newsletter.
Company Info
ARC Resources Ltd. explores for, develops, and produces unconventional natural gas, condensate, natural gas liquids, and crude oil in western Canada, with operations focused on the Montney resource play.
Market Cap
CAD 19.2B
Pitch Price
CAD 24.03
Price Target
41.00 (+21%)
Dividend
2.48%
EV/EBITDA
6.12
P/E
13.74
EV/Sales
3.16
Sector
Oil, Gas and Consumable Fuels
Category
value
ARC Resources: The Dutch Two-Trade Strategy Reborn in the Montney Basin
ARX.TO: Low-cost Montney producer ($11/boe) w/ dual gas/condensate model generating ~10% FCF yield at current prices. Strategic LNG contracts + marketing moat achieved 175% premium to AECO in Q3. Trading 5x EBITDA vs C$41/share 2P reserves (70% upside). Mgmt returns 100% FCF via buybacks/divs.
Read full article (30 min)