Executive Summary
ARC Resources Ltd. explores, develops, and produces crude oil, natural gas, and natural gas liquids in Canada. More Details
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential and fair value.
Share Price & News
How has ARC Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARX is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ARX's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
3.1%
ARX
6.1%
CA Oil and Gas
1.0%
CA Market
1 Year Return
77.1%
ARX
20.8%
CA Oil and Gas
29.0%
CA Market
Return vs Industry: ARX exceeded the Canadian Oil and Gas industry which returned 1.5% over the past year.
Return vs Market: ARX exceeded the Canadian Market which returned 16.2% over the past year.
Shareholder returns
| ARX | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 6.1% | 1.0% |
| 30 Day | 11.9% | 11.5% | 2.1% |
| 90 Day | 33.3% | 17.0% | 7.0% |
| 1 Year | 84.1%77.1% | 28.2%20.8% | 33.8%29.0% |
| 3 Year | -27.2%-39.0% | 1.0%-11.5% | 25.2%13.4% |
| 5 Year | -48.3%-59.4% | 3.5%-14.9% | 57.6%33.8% |
Long-Term Price Volatility Vs. Market
How volatile is ARC Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
ARC Resources (TSE:ARX) Seems To Use Debt Quite Sensibly1 month ago | Simply Wall St
Should You Review Recent Insider Transactions At ARC Resources Ltd. (TSE:ARX)?1 month ago | Simply Wall St
Would Shareholders Who Purchased ARC Resources' (TSE:ARX) Stock Five Years Be Happy With The Share price Today?Valuation
Is ARC Resources undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARX (CA$7.72) is trading below our estimate of fair value (CA$48.55)
Significantly Below Fair Value: ARX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ARX is unprofitable, so we can't compare its PE Ratio to the CA Oil and Gas industry average.
PE vs Market: ARX is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ARX's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ARX is good value based on its PB Ratio (1x) compared to the CA Oil and Gas industry average (1.5x).
Next Steps
Future Growth
How is ARC Resources forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
42.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: ARX is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ARX's is expected to become profitable in the next 3 years.
Revenue vs Market: ARX's revenue (23% per year) is forecast to grow faster than the Canadian market (7.7% per year).
High Growth Revenue: ARX's revenue (23% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARX's Return on Equity is forecast to be high in 3 years time (22.5%)
Next Steps
Past Performance
How has ARC Resources performed over the past 5 years?
-28.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARX is currently unprofitable.
Growing Profit Margin: ARX is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ARX is unprofitable, and losses have increased over the past 5 years at a rate of 28.6% per year.
Accelerating Growth: Unable to compare ARX's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ARX is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-43.6%).
Return on Equity
High ROE: ARX has a negative Return on Equity (-19.61%), as it is currently unprofitable.
Next Steps
Financial Health
How is ARC Resources's financial position?
Financial Position Analysis
Short Term Liabilities: ARX's short term assets (CA$162.3M) do not cover its short term liabilities (CA$367.7M).
Long Term Liabilities: ARX's short term assets (CA$162.3M) do not cover its long term liabilities (CA$1.8B).
Debt to Equity History and Analysis
Debt Level: ARX's debt to equity ratio (25.2%) is considered satisfactory.
Reducing Debt: ARX's debt to equity ratio has reduced from 32.8% to 25.2% over the past 5 years.
Debt Coverage: ARX's debt is well covered by operating cash flow (93.4%).
Interest Coverage: ARX is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is ARC Resources's current dividend yield, its reliability and sustainability?
3.11%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARX's dividend (3.11%) is higher than the bottom 25% of dividend payers in the Canadian market (1.57%).
High Dividend: ARX's dividend (3.11%) is low compared to the top 25% of dividend payers in the Canadian market (4.94%).
Stability and Growth of Payments
Stable Dividend: ARX's dividend payments have been volatile in the past 10 years.
Growing Dividend: ARX's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: ARX is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: ARX's dividends in 3 years are forecast to be thoroughly covered by earnings (12.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Terry Anderson (49 yo)
1.08yrs
Tenure
CA$2,801,060
Compensation
Mr. Terry Michael Anderson, P. Eng., has been the Chief Executive Officer and President at ARC Resources Ltd. since February 20, 2020 and serves as its Director since May 7, 2020. Mr. Anderson served as th...
CEO Compensation Analysis
Compensation vs Market: Terry's total compensation ($USD2.21M) is about average for companies of similar size in the Canadian market ($USD2.22M).
Compensation vs Earnings: Terry's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.08yrs | CA$2.80m | no data | |
| Senior VP & CFO | 1.08yrs | CA$1.20m | 0.036% CA$ 996.8k | |
| Vice President of Development & Planning | 7.08yrs | CA$1.21m | 0.029% CA$ 802.4k | |
| Vice President of Operations | no data | no data | 0.018% CA$ 497.7k | |
| Vice President of Marketing | 4.17yrs | no data | 0.017% CA$ 470.8k | |
| Vice President of Human Resources | 5.17yrs | no data | 0.025% CA$ 701.5k | |
| Corporate Secretary | 7.17yrs | no data | no data |
4.7yrs
Average Tenure
49yo
Average Age
Experienced Management: ARX's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.08yrs | CA$2.80m | no data | |
| Independent Director | 11.75yrs | CA$245.00k | 0% CA$ 0 | |
| Independent Chairman of the Board | 5.17yrs | CA$415.02k | 0% CA$ 0 | |
| Independent Director | 5.08yrs | CA$235.02k | 0% CA$ 0 | |
| Independent Director | 24.83yrs | CA$235.02k | 0% CA$ 0 | |
| Independent Director | 7.33yrs | CA$220.00k | 0% CA$ 0 | |
| Independent Director | 15.17yrs | CA$235.02k | 0% CA$ 0 | |
| Independent Director | 0.33yr | no data | no data | |
| Independent Director | 4.33yrs | CA$235.00k | 0% CA$ 0 | |
| Independent Director | 1.33yrs | CA$32.88k | no data |
5.1yrs
Average Tenure
65yo
Average Age
Experienced Board: ARX's board of directors are considered experienced (5.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
ARC Resources Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: ARC Resources Ltd.
- Ticker: ARX
- Exchange: TSX
- Founded: 1996
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: CA$2.796b
- Shares outstanding: 354.37m
- Website: https://www.arcresources.com
Number of Employees
Location
- ARC Resources Ltd.
- 308 - 4th Avenue South West
- Suite 1200
- Calgary
- Alberta
- T2P 0H7
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARX | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jul 1996 |
| AETU.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jul 1996 |
| 8RC | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jul 1996 |
Biography
ARC Resources Ltd. explores, develops, and produces crude oil, natural gas, and natural gas liquids in Canada. The company holds interests in the Montney properties located in northeast British Columbia an...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/08 23:03 |
| End of Day Share Price | 2021/03/08 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.