Executive Summary
ARC Resources Ltd., together with its subsidiaries, acquires, develops, and holds interest in petroleum and natural gas properties and assets in Canada.
Rewards
Risk Analysis
Snowflake Analysis
Slightly overvalued with imperfect balance sheet.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.7%
ARX
1.5%
CA Oil and Gas
0.9%
CA Market
1 Year Return
-19.7%
ARX
-26.2%
CA Oil and Gas
-11.4%
CA Market
Return vs Industry: ARX exceeded the Canadian Oil and Gas industry which returned -26.2% over the past year.
Return vs Market: ARX underperformed the Canadian Market which returned -11.4% over the past year.
Shareholder returns
| ARX | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | 1.5% | 0.9% |
| 30 Day | 0.5% | 5.7% | 4.5% |
| 90 Day | -3.4% | -20.0% | -9.3% |
| 1 Year | -13.5%-19.7% | -22.4%-26.2% | -8.4%-11.4% |
| 3 Year | -60.1%-66.4% | -27.5%-36.0% | 0.4%-8.9% |
| 5 Year | -66.5%-74.0% | -30.6%-41.9% | 16.9%-0.3% |
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
Factors Income Investors Should Consider Before Adding ARC Resources Ltd. (TSE:ARX) To Their Portfolio1 month ago | Simply Wall St
ARC Resources Ltd. (TSE:ARX): What Does Its Beta Value Mean For Your Portfolio?1 month ago | Simply Wall St
Investors Who Bought ARC Resources (TSE:ARX) Shares Five Years Ago Are Now Down 80%Valuation
Is ARC Resources undervalued compared to its fair value and its price relative to the market?
38.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARX (CA$5.74) is trading below our estimate of fair value (CA$9.37)
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 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 overvalued based on its PB Ratio (0.7x) compared to the CA Oil and Gas industry average (0.6x).
Next Steps
Future Growth
How is ARC Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
98.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARX is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: ARX is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: ARX is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: ARX's revenue (12.6% per year) is forecast to grow faster than the Canadian market (5.8% per year).
High Growth Revenue: ARX's revenue (12.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if ARX's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has ARC Resources performed over the past 5 years?
2.8%
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, but has reduced losses over the past 5 years at a rate of 2.8% 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 (-16.2%).
Return on Equity
High ROE: ARX has a negative Return on Equity (-18.71%), 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$193.7M) do not cover its short term liabilities (CA$341.9M).
Long Term Liabilities: ARX's short term assets (CA$193.7M) do not cover its long term liabilities (CA$2.0B).
Debt to Equity History and Analysis
Debt Level: ARX's debt to equity ratio (34.4%) is considered satisfactory.
Reducing Debt: ARX's debt to equity ratio has increased from 27.4% to 34.4% over the past 5 years.
Debt Coverage: ARX's debt is well covered by operating cash flow (71%).
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?
4.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARX's dividend (4.18%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).
High Dividend: ARX's dividend (4.18%) is low compared to the top 25% of dividend payers in the Canadian market (6.35%).
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: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Terry Anderson (49yo)
0.33
Tenure
CA$2,801,060
Compensation
Mr. Terry Michael Anderson, P. Eng., serves as Chief Executive Officer and Director at ARC Resources Ltd. Since February 20, 2020 and May 7, 2020 respectively and served as Chief Operating Officer and Seni ...
CEO Compensation Analysis
Compensation vs Market: Terry's total compensation ($USD2.07M) is about average for companies of similar size in the Canadian market ($USD2.09M).
Compensation vs Earnings: Terry's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.33yr | CA$2.80m | 0.075% CA$1.5m | |
| Senior VP & CFO | 0.33yr | CA$1.20m | 0.027% CA$538.6k | |
| Vice President of Development & Planning | 6.33yrs | CA$1.21m | 0.023% CA$457.6k | |
| Vice President of Operations | no data | no data | 0.011% CA$229.4k | |
| Vice President of Marketing | 3.42yrs | no data | 0.013% CA$255.0k | |
| Vice President of Human Resources | 4.42yrs | no data | 0.018% CA$364.9k | |
| Corporate Secretary | 6.42yrs | no data | no data |
3.9yrs
Average Tenure
49yo
Average Age
Experienced Management: ARX's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.33yr | CA$2.80m | 0.075% CA$1.5m | |
| Independent Director | 11yrs | CA$245.00k | 0.0059% CA$118.7k | |
| Independent Chairman of the Board | 4.42yrs | CA$415.02k | 0.042% CA$860.9k | |
| Independent Director | 4.33yrs | CA$235.02k | 0.0029% CA$58.2k | |
| Independent Director | 24.08yrs | CA$235.02k | 0.072% CA$1.5m | |
| Independent Director | 6.58yrs | CA$220.00k | 0.0057% CA$114.8k | |
| Independent Director | 14.42yrs | CA$235.02k | 0.048% CA$971.9k | |
| Independent Director | 3.58yrs | CA$235.00k | 0.0057% CA$114.8k | |
| Independent Director | 0.58yr | CA$32.88k | no data |
4.4yrs
Average Tenure
65yo
Average Age
Experienced Board: ARX's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ARX insiders have sold more shares than they have bought 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$2.029b
- Shares outstanding: 353.40m
- 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., together with its subsidiaries, acquires, develops, and holds interest in petroleum and natural gas properties and assets in Canada. The company holds interests in the Montney properties located in northeast British Columbia and northern Alberta; and Cardium properties in the Pembina area of Alberta. As of December 31, 2019, it had proved plus probable reserves of 909.9 millions of barrels of oil equivalent. ARC Resources Ltd. was founded in 1996 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/03 04:18 |
| End of Day Share Price | 2020/06/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.