ARC Resources
ARC Resources Ltd., together with its subsidiaries, acquires, develops, and holds interest in petroleum and natural gas properties and assets in Canada. The last earnings update was 24 days ago. More info.
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- ARC Resources has significant price volatility in the past 3 months.
ARX Share Price and Events
7 Day Returns
1 Year Returns
ARX Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| ARC Resources (ARX) | -2.7% | -10.3% | -21.7% | -39.9% | -63.1% | -74.5% |
| CA Oil and Gas | 1.2% | -3.9% | 1.5% | -9.4% | -7.9% | -33.6% |
| CA Market | 0.6% | -1.6% | 1.6% | -1.2% | 12.2% | 5.5% |
1 Year Return vs Industry and Market
- ARX underperformed the Oil and Gas industry which returned -9.4% over the past year.
- ARX underperformed the Market in Canada which returned -1.2% over the past year.
Value
Is ARC Resources undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
ARC Resources
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for ARC Resources.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 4 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.8% |
| Perpetual Growth Rate | 10-Year CA Government Bond Rate | 1.9% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year CA Govt Bond Rate | 1.9% |
| Equity Risk Premium | S&P Global | 6% |
| Oil and Gas Unlevered Beta | Simply Wall St/ S&P Global | 0.98 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.976 (1 + (1- 26.5%) (33.11%)) |
1.143 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.14 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.143 * 5.96%) |
8.76% |
Discounted Cash Flow Calculation for TSX:ARX using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for ARC Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (CAD, Millions) | Source |
Present Value Discounted (@ 8.76%) |
|
|---|---|---|---|
| 2019 | -170.75 | Analyst x4 | -157.00 |
| 2020 | 9.75 | Analyst x4 | 8.24 |
| 2021 | 163.00 | Analyst x2 | 126.70 |
| 2022 | 477.00 | Analyst x1 | 340.90 |
| 2023 | 479.00 | Analyst x1 | 314.75 |
| 2024 | 483.20 | Est @ 0.88% | 291.94 |
| 2025 | 488.99 | Est @ 1.2% | 271.64 |
| 2026 | 495.95 | Est @ 1.42% | 253.31 |
| 2027 | 503.78 | Est @ 1.58% | 236.58 |
| 2028 | 512.30 | Est @ 1.69% | 221.20 |
| Present value of next 10 years cash flows | CA$1,908.27 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= CA$512.30 × (1 + 1.95%) ÷ (8.76% – 1.95%) |
CA$7,664.71 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= CA$7,664.71 ÷ (1 + 8.76%)10 |
CA$3,309.51 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= CA$1,908.27 + CA$3,309.51 |
CA$5,217.78 |
| Equity Value per Share (CAD) |
= Total value / Shares Outstanding
= CA$5,217.78 / 353.44 |
CA$14.76 |
| Calculation | Result | |
|---|---|---|
| Value per share (CAD) | From above. | CA$14.76 |
| Current discount | Discount to share price of
CA$7.96
= -1 x (CA$7.96 - CA$14.76) / CA$14.76 |
46.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- ARC Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
- ARC Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for ARC Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
ARC Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in CAD | CA$0.30 |
| TSX:ARX Share Price ** | TSX (2019-05-23) in CAD | CA$7.96 |
| Canada Oil and Gas Industry PE Ratio | Median Figure of 57 Publicly-Listed Oil and Gas Companies | 14.61x |
| Canada Market PE Ratio | Median Figure of 542 Publicly-Listed Companies | 15.02x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of ARC Resources.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = TSX:ARX Share Price ÷ EPS (both in CAD) = 7.96 ÷ 0.30 |
26.97x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- ARC Resources is overvalued based on earnings compared to the CA Oil and Gas industry average.
- ARC Resources is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does
ARC Resources's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 26.97x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
40.8%per year |
| Canada Oil and Gas Industry PEG Ratio | Median Figure of 36 Publicly-Listed Oil and Gas Companies | 0.97x |
| Canada Market PEG Ratio | Median Figure of 249 Publicly-Listed Companies | 1.17x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 26.97x ÷ 40.8% |
0.66x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- ARC Resources is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
ARC Resources's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in CAD | CA$10.10 |
| TSX:ARX Share Price * | TSX (2019-05-23) in CAD | CA$7.96 |
| Canada Oil and Gas Industry PB Ratio | Median Figure of 224 Publicly-Listed Oil and Gas Companies | 0.89x |
| Canada Market PB Ratio | Median Figure of 2,403 Publicly-Listed Companies | 1.44x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = TSX:ARX Share Price ÷ Book Value per Share (both in CAD) = 7.96 ÷ 10.10 |
0.79x |
* Primary Listing of ARC Resources.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- ARC Resources is good value based on assets compared to the CA Oil and Gas industry average.
Value checks
We assess ARC Resources's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check) ARC Resources has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- ARC Resources's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
- ARC Resources's earnings growth is expected to exceed the Canada market average.
- ARC Resources's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| TSX:ARX Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | 40.8% |
| TSX:ARX Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 6.5% |
| Canada Oil and Gas Industry Earnings Growth Rate | Market Cap Weighted Average | 7.4% |
| Canada Oil and Gas Industry Revenue Growth Rate | Market Cap Weighted Average | 4.5% |
| Canada Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| Canada Market Revenue Growth Rate | Market Cap Weighted Average | 6% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | 1,076 | |||
| 2020-12-31 | 1,441 | 836 | 149 | 4 |
| 2019-12-31 | 1,276 | 762 | 61 | 4 |
| Date (Data in CAD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 1,384 | 792 | 104 |
| 2018-12-31 | 1,396 | 863 | 214 |
| 2018-09-30 | 1,412 | 834 | 128 |
| 2018-06-30 | 1,288 | 752 | 131 |
| 2018-03-31 | 1,242 | 681 | 301 |
| 2017-12-31 | 1,209 | 673 | 389 |
| 2017-09-30 | 1,186 | 636 | 482 |
| 2017-06-30 | 1,156 | 647 | 462 |
| 2017-03-31 | 1,072 | 670 | 280 |
| 2016-12-31 | 975 | 631 | 201 |
| 2016-09-30 | 933 | 647 | -21 |
| 2016-06-30 | 944 | 655 | -284 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
All data from ARC Resources Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | ||||
| 2022-12-31 | ||||
| 2021-12-31 | ||||
| 2020-12-31 | 0.42 | 0.56 | 0.28 | 5.00 |
| 2019-12-31 | 0.23 | 0.43 | 0.08 | 6.00 |
| Date (Data in CAD Millions) | EPS * |
|---|---|
| 2019-03-31 | 0.30 |
| 2018-12-31 | 0.60 |
| 2018-09-30 | 0.36 |
| 2018-06-30 | 0.37 |
| 2018-03-31 | 0.85 |
| 2017-12-31 | 1.10 |
| 2017-09-30 | 1.36 |
| 2017-06-30 | 1.31 |
| 2017-03-31 | 0.79 |
| 2016-12-31 | 0.57 |
| 2016-09-30 | -0.06 |
| 2016-06-30 | -0.82 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if ARC Resources will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess ARC Resources's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
ARC Resources has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has ARC Resources performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- ARC Resources's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
- ARC Resources's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- ARC Resources's 1-year earnings growth is negative, it can't be compared to the CA Oil and Gas industry average.
Earnings and Revenue History
All data from ARC Resources Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in CAD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 1,384.10 | 104.30 | 87.40 | |
| 2018-12-31 | 1,395.90 | 213.80 | 85.20 | |
| 2018-09-30 | 1,411.90 | 128.00 | 87.60 | |
| 2018-06-30 | 1,287.90 | 131.40 | 76.60 | |
| 2018-03-31 | 1,241.50 | 301.30 | 79.40 | |
| 2017-12-31 | 1,208.50 | 388.90 | 70.20 | |
| 2017-09-30 | 1,185.70 | 482.00 | 67.90 | |
| 2017-06-30 | 1,156.10 | 461.80 | 73.40 | |
| 2017-03-31 | 1,071.60 | 279.70 | 79.40 | |
| 2016-12-31 | 974.50 | 201.30 | 99.30 | |
| 2016-09-30 | 933.00 | -20.70 | 98.10 | |
| 2016-06-30 | 944.20 | -284.00 | 94.40 | |
| 2016-03-31 | 1,027.10 | -276.90 | 89.70 | |
| 2015-12-31 | 1,090.40 | -342.70 | 68.60 | |
| 2015-09-30 | 1,218.20 | -174.00 | 80.60 | |
| 2015-06-30 | 1,424.60 | 151.30 | 79.30 | |
| 2015-03-31 | 1,614.50 | 349.70 | 75.10 | |
| 2014-12-31 | 1,809.70 | 380.80 | 84.30 | |
| 2014-09-30 | 1,783.80 | 280.70 | 83.90 | |
| 2014-06-30 | 1,685.10 | 277.30 | 86.10 | |
| 2014-03-31 | 1,542.30 | 223.20 | 89.40 | |
| 2013-12-31 | 1,401.20 | 240.70 | 98.40 | |
| 2013-09-30 | 1,360.80 | 311.60 | 99.20 | |
| 2013-06-30 | 1,288.90 | 200.40 | 104.60 | |
| 2013-03-31 | 1,215.10 | 145.20 | 104.30 | |
| 2012-12-31 | 1,193.70 | 139.20 | 97.10 | |
| 2012-09-30 | 1,191.10 | 5.70 | 89.30 | |
| 2012-06-30 | 1,199.00 | 150.70 | 81.90 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- ARC Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- ARC Resources used its assets less efficiently than the CA Oil and Gas industry average last year based on Return on Assets.
- ARC Resources has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
Past performance checks
We assess ARC Resources's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
ARC Resources has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is ARC Resources's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up ARC Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
- ARC Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- ARC Resources's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from ARC Resources Company Filings, last reported 1 month ago.
| Date (Data in CAD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 3,568.80 | 931.40 | 147.90 |
| 2018-12-31 | 3,675.80 | 909.20 | 259.60 |
| 2018-09-30 | 3,568.00 | 863.30 | 251.10 |
| 2018-06-30 | 3,574.00 | 892.90 | 168.10 |
| 2018-03-31 | 3,671.90 | 925.00 | 257.90 |
| 2017-12-31 | 3,668.90 | 911.30 | 220.20 |
| 2017-09-30 | 3,646.80 | 922.40 | 333.20 |
| 2017-06-30 | 3,650.00 | 971.40 | 507.60 |
| 2017-03-31 | 3,577.90 | 1,005.00 | 642.00 |
| 2016-12-31 | 3,484.80 | 1,026.00 | 672.20 |
| 2016-09-30 | 3,346.10 | 1,015.50 | 48.50 |
| 2016-06-30 | 3,344.10 | 1,007.50 | 62.20 |
| 2016-03-31 | 3,427.60 | 1,034.40 | 168.60 |
| 2015-12-31 | 3,388.50 | 1,114.30 | 170.50 |
| 2015-09-30 | 3,494.10 | 1,092.50 | 208.70 |
| 2015-06-30 | 3,780.30 | 1,020.60 | 226.10 |
| 2015-03-31 | 3,884.60 | 1,065.90 | 194.60 |
| 2014-12-31 | 3,551.80 | 1,074.80 | 10.70 |
| 2014-09-30 | 3,492.00 | 988.30 | 5.60 |
| 2014-06-30 | 3,457.60 | 903.70 | 11.10 |
| 2014-03-31 | 3,368.80 | 989.00 | 13.80 |
| 2013-12-31 | 3,396.10 | 901.30 | 3.60 |
| 2013-09-30 | 3,442.60 | 780.70 | 9.30 |
| 2013-06-30 | 3,415.50 | 796.60 | 12.90 |
| 2013-03-31 | 3,382.80 | 802.40 | 88.90 |
| 2012-12-31 | 3,396.70 | 787.40 | 196.30 |
| 2012-09-30 | 3,371.80 | 790.20 | 234.20 |
| 2012-06-30 | 3,122.00 | 891.60 | 1.90 |
- ARC Resources's level of debt (26.1%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (29.3% vs 26.1% today).
- Debt is well covered by operating cash flow (85%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 5.9x coverage).
Financial health checks
We assess ARC Resources's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) ARC Resources has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is ARC Resources's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
CA$2,000 of
ARC Resources
shares you are expected to receive
CA$151
in your first year as a dividend.
Dividend Amount
- ARC Resources's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
- ARC Resources's dividend is above the markets top 25% of dividend payers in Canada (5.68%).
Upcoming dividend payment
Purchase ARC Resources before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Canada Oil and Gas Industry Average Dividend Yield | Market Cap Weighted Average of 36 Stocks | 4.4% |
| Canada Market Average Dividend Yield | Market Cap Weighted Average of 331 Stocks | 3.5% |
| Canada Minimum Threshold Dividend Yield | 10th Percentile | 1.2% |
| Canada Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Canada Top 25% Dividend Yield | 75th Percentile | 5.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in CA$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | ||
| 2020-12-31 | 0.60 | 7.00 |
| 2019-12-31 | 0.60 | 9.00 |
| Date (Data in CA$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-04-15 | 0.600 | 7.115 |
| 2019-03-15 | 0.600 | 6.437 |
| 2019-02-15 | 0.600 | 6.129 |
| 2019-01-15 | 0.600 | 6.264 |
| 2018-12-18 | 0.600 | 7.046 |
| 2018-11-15 | 0.600 | 6.451 |
| 2018-10-15 | 0.600 | 4.988 |
| 2018-09-17 | 0.600 | 4.296 |
| 2018-08-15 | 0.600 | 4.310 |
| 2018-05-02 | 0.600 | 4.318 |
| 2018-02-08 | 0.600 | 4.454 |
| 2017-11-10 | 0.600 | 4.126 |
| 2017-08-03 | 0.600 | 3.638 |
| 2017-05-03 | 0.600 | 3.470 |
| 2017-04-17 | 0.600 | 3.323 |
| 2017-03-16 | 0.600 | 3.173 |
| 2017-02-16 | 0.600 | 3.017 |
| 2017-01-16 | 0.600 | 2.908 |
| 2016-12-16 | 0.600 | 2.657 |
| 2016-11-16 | 0.600 | 2.540 |
| 2016-07-28 | 0.600 | 2.606 |
| 2016-04-28 | 0.600 | 2.782 |
| 2016-02-10 | 0.600 | 3.205 |
| 2015-11-04 | 1.200 | 6.999 |
| 2015-10-16 | 1.200 | 6.022 |
| 2015-07-16 | 1.200 | 6.352 |
| 2015-06-16 | 1.200 | 5.553 |
| 2015-05-19 | 1.200 | 5.338 |
| 2015-02-11 | 1.200 | 5.116 |
| 2014-11-05 | 1.200 | 4.840 |
| 2014-10-16 | 1.200 | 4.401 |
| 2014-09-16 | 1.200 | 4.174 |
| 2014-08-18 | 1.200 | 3.884 |
| 2014-07-16 | 1.200 | 3.963 |
| 2014-06-16 | 1.200 | 3.779 |
| 2014-05-16 | 1.200 | 3.744 |
| 2014-04-16 | 1.200 | 3.743 |
| 2014-03-17 | 1.200 | 3.916 |
| 2014-02-18 | 1.200 | 4.054 |
| 2014-01-16 | 1.200 | 4.158 |
| 2013-12-16 | 1.200 | 4.149 |
| 2013-11-19 | 1.200 | 4.167 |
| 2013-08-01 | 1.200 | 4.485 |
| 2013-05-01 | 1.200 | 4.383 |
| 2013-04-16 | 1.200 | 4.403 |
| 2013-03-15 | 1.200 | 4.469 |
| 2013-02-15 | 1.200 | 4.586 |
| 2012-11-07 | 1.200 | 4.997 |
| 2012-08-01 | 1.200 | 5.050 |
| 2012-05-02 | 1.200 | 5.633 |
| 2012-04-16 | 1.200 | 6.125 |
| 2012-03-15 | 1.200 | 5.418 |
| 2012-02-08 | 1.200 | 4.900 |
| 2012-01-16 | 1.200 | 5.027 |
| 2011-12-16 | 1.200 | 4.887 |
| 2011-11-16 | 1.200 | 4.778 |
| 2011-08-03 | 1.200 | 5.118 |
| 2011-05-17 | 1.200 | 4.775 |
| 2011-05-16 | 1.200 | 5.006 |
| 2011-04-15 | 1.200 | 4.849 |
| 2011-03-16 | 1.200 | 4.578 |
| 2011-02-10 | 1.200 | 4.525 |
| 2011-01-17 | 1.200 | 4.831 |
| 2010-12-14 | 1.200 | 4.810 |
| 2010-11-16 | 1.200 | 4.965 |
| 2010-10-15 | 1.200 | 5.422 |
| 2010-09-16 | 1.200 | 5.826 |
| 2010-08-16 | 1.200 | 6.076 |
| 2010-07-16 | 1.200 | 5.997 |
| 2010-06-16 | 1.200 | 5.899 |
| 2010-05-17 | 1.200 | 5.832 |
| 2010-03-16 | 1.200 | 5.626 |
| 2010-02-12 | 1.200 | 5.456 |
| 2010-01-15 | 1.200 | 5.819 |
| 2009-12-16 | 1.200 | 5.806 |
| 2009-11-16 | 1.200 | 5.981 |
| 2009-10-16 | 1.200 | 5.828 |
| 2009-09-16 | 1.200 | 6.040 |
| 2009-08-17 | 1.200 | 6.837 |
| 2009-07-16 | 1.200 | 6.865 |
| 2009-06-15 | 1.200 | 7.102 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have fallen over the past 10 years.
Income/ dividend checks
We assess ARC Resources's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can ARC Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) ARC Resources has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | CA$4,661,418 |
| AGE | 55 |
| TENURE AS CEO | 6.3 years |
CEO Bio
Mr. Myron M. Stadnyk, B.Sc., P.Eng., has been an Independent Director of PrairieSky Royalty Ltd. since June 18, 2018. Mr. Stadnyk has been the Chief Executive Officer and President of ARC Resources Ltd. since January 1, 2013 and February 1, 2009 respectively and served as its Chief Operating Officer since February 1, 2009 until January 1, 2013. Mr. Stadnyk served as Senior Vice President of ARC Energy Trust (formerly, ARC Resources Ltd) until February 2009 and Vice President of Operations and Land. He is responsible for all of ARC's operational activities. Mr. Stadnyk has 18 years experience in all aspects of oil and gas production operations. Prior to joining ARC Resources Ltd. in 1997, Mr. Stadnyk worked with a major oil and gas company in both domestic and international operations and oil and gas facility design and construction. He has been a Non Independent Director of ARC Resources Ltd. since January 01, 2013. Mr. Stadnyk has a B.Sc degree in Mechanical Engineering from University of Saskatchewan and is a graduate of the Harvard Business School Advanced Management program. He is a member of the Association of Professional Engineers, Geologists and Geophysicists in Alberta and the Association of Professional Engineers and Geoscientists in Saskatchewan. He is the Chair of the British Columbia Executive Policy Group. He serves as a Governor for the Canadian Association of Petroleum Producers Board of Governors. Mr. Stadnyk is also a member of the Board of Directors for STARS (Shock Trauma Air Rescue Society) Ambulance and the University of Saskatchewan Engineering Advancement Trust.
CEO Compensation
- Myron's compensation has been consistent with company performance over the past year, both up more than 20%.
- Myron's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure
Average tenure of the ARC Resources management team in years:
- The average tenure for the ARC Resources management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Myron Stadnyk
CEO, President & Director
CA$5M
55
6.3 yrs
P. Van Dafoe
CFO & Senior VP
CA$2M
5.3 yrs
Terry Anderson
COO & Senior VP
CA$3M
5.4 yrs
Bevin Wirzba
Senior VP of Business Development & Capital Markets
CA$2M
2.8 yrs
Ryan Berrett
Vice President of Marketing
2.3 yrs
Lisa Olsen
Vice President of Human Resources
3.3 yrs
Grant Zawalsky
Corporate Secretary
58
5.3 yrs
Board of Directors Tenure
Average tenure and age of the ARC Resources board of directors in years:
- The tenure for the ARC Resources board of directors is about average.
Board of Directors
Hal Kvisle
Chairman of the Board
CA$415K
65
3.3 yrs
Myron Stadnyk
CEO, President & Director
CA$5M
55
6.3 yrs
John Dielwart
Independent Director
CA$235K
65
23 yrs
Herb Pinder
Independent Director
CA$235K
71
13.3 yrs
Kathleen O'Neill
Independent Director
CA$245K
64
9.9 yrs
Nancy Smith
Independent Director
CA$234K
55
3.3 yrs
David Collyer
Independent Director
CA$230K
62
2.5 yrs
Fred Dyment
Independent Director
CA$225K
69
16.1 yrs
William Sembo
Independent Director
CA$220K
64
5.5 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by ARC Resources insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (CA$) | Value (CA$) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. May 19 | Buy | Frederick Dyment | Individual | 06. May 19 | 06. May 19 | 10,000 | CA$7.94 | CA$79,400 | ||
| 03. May 19 | Buy | Lisa Olsen | Individual | 03. May 19 | 03. May 19 | 3,040 | CA$8.10 | CA$24,488 | ||
| 11. Jan 19 | Buy | William Sembo | Individual | 20. Dec 18 | 20. Dec 18 | 4,700 | CA$8.19 | CA$38,493 | ||
| 01. Jan 19 | Buy | Sean Ross Calder | Individual | 28. Dec 18 | 28. Dec 18 | 6,150 | CA$8.03 | CA$49,315 | ||
| 21. Dec 18 | Buy | Ryan Berrett | Individual | 21. Dec 18 | 21. Dec 18 | 3,145 | CA$8.20 | CA$25,789 | ||
| 21. Dec 18 | Buy | Kristen Bibby | Individual | 21. Dec 18 | 21. Dec 18 | 5,000 | CA$8.30 | CA$41,500 | ||
| 19. Dec 18 | Buy | Frederick Dyment | Individual | 18. Dec 18 | 18. Dec 18 | 50,000 | CA$8.00 | CA$399,503 | ||
| 14. Dec 18 | Buy | Harold Kvisle | Individual | 13. Dec 18 | 13. Dec 18 | 5,000 | CA$8.83 | CA$44,150 | ||
| 13. Dec 18 | Buy | Terry Anderson | Individual | 12. Dec 18 | 12. Dec 18 | 5,000 | CA$8.51 | CA$42,550 | ||
| 12. Dec 18 | Buy | Myron Stadnyk | Individual | 12. Dec 18 | 12. Dec 18 | 90,000 | CA$8.70 | CA$781,500 | ||
| 12. Dec 18 | Buy | Frederick Dyment | Individual | 10. Dec 18 | 11. Dec 18 | 25,000 | CA$8.82 | CA$214,545 | ||
| 07. Dec 18 | Buy | Frederick Dyment | Individual | 06. Dec 18 | 06. Dec 18 | 25,000 | CA$8.75 | CA$218,750 | ||
| 06. Dec 18 | Buy | P. Van Dafoe | Individual | 06. Dec 18 | 06. Dec 18 | 3,000 | CA$8.75 | CA$26,250 | ||
| 05. Dec 18 | Buy | Larissa Conrad | Individual | 05. Dec 18 | 05. Dec 18 | 3,060 | CA$9.15 | CA$27,999 | ||
| 29. Nov 18 | Buy | Lisa Olsen | Individual | 29. Nov 18 | 29. Nov 18 | 2,200 | CA$9.12 | CA$20,064 | ||
| 27. Nov 18 | Buy | P. Van Dafoe | Individual | 27. Nov 18 | 27. Nov 18 | 5,000 | CA$9.46 | CA$47,300 | ||
| 27. Nov 18 | Buy | Frederick Dyment | Individual | 27. Nov 18 | 27. Nov 18 | 25,000 | CA$9.54 | CA$238,500 | ||
| 22. Nov 18 | Buy | Christopher Baldwin | Individual | 21. Nov 18 | 21. Nov 18 | 9,378 | CA$10.68 | CA$100,121 | ||
| 18. Nov 18 | Buy | TSR Investments | Company | 12. Nov 18 | 12. Nov 18 | 94,000 | CA$10.58 | CA$994,520 | ||
| 19. Nov 18 | Buy | Bevin Wirzba | Individual | 14. Nov 18 | 14. Nov 18 | 4,855 | CA$10.28 | CA$49,909 | ||
| 19. Nov 18 | Buy | Terry Anderson | Individual | 16. Nov 18 | 16. Nov 18 | 5,000 | CA$10.40 | CA$52,000 | ||
| 14. Nov 18 | Buy | The Vanguard Group, Inc. | Company | 13. Nov 18 | 13. Nov 18 | 12,534 | CA$10.55 | CA$132,234 | ||
| 13. Nov 18 | Buy | Lisa Olsen | Individual | 12. Nov 18 | 12. Nov 18 | 1,900 | CA$10.60 | CA$20,140 | ||
| 13. Nov 18 | Buy | Kristen Bibby | Individual | 12. Nov 18 | 12. Nov 18 | 10,000 | CA$10.55 | CA$105,500 | ||
| 13. Nov 18 | Buy | P. Van Dafoe | Individual | 12. Nov 18 | 12. Nov 18 | 5,000 | CA$10.60 | CA$53,000 | ||
| 13. Nov 18 | Buy | Myron Stadnyk | Individual | 12. Nov 18 | 12. Nov 18 | 5,000 | CA$10.22 | CA$51,100 | ||
| 13. Nov 18 | Buy | Frederick Dyment | Individual | 12. Nov 18 | 12. Nov 18 | 25,000 | CA$10.55 | CA$263,435 | ||
| 20. Sep 18 | Buy | BMO Global Asset Management | Company | 20. Sep 18 | 20. Sep 18 | 10,000 | CA$13.49 | CA$134,900 | ||
| 23. Aug 18 | Sell | John Dielwart | Individual | 22. Aug 18 | 22. Aug 18 | -6,900 | CA$14.50 | CA$-100,016 | ||
| 23. Aug 18 | Buy | John Dielwart | Individual | 22. Aug 18 | 22. Aug 18 | 6,900 | CA$14.49 | CA$99,993 | ||
| 25. Jun 18 | Buy | Armin Jahangiri | Individual | 25. Jun 18 | 25. Jun 18 | 2,500 | CA$13.25 | CA$33,125 | ||
| 30. May 18 | Sell | John Dielwart | Individual | 30. May 18 | 30. May 18 | -20,000 | CA$13.26 | CA$-265,200 | ||
Management checks
We assess ARC Resources's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) ARC Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is ARC Resources Ltd. (TSE:ARX) As Strong As Its Balance Sheet Indicates?
Today we will look at ARX’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Moreover, ARX has produced cash from operations of CA$792m over the same time period, leading to an operating cash to total debt ratio of 85%, signalling that ARX’s current level of operating cash is high enough to cover debt. … With current liabilities at CA$295m, it appears that the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.38x.
Simply Wall St - – Full articleDoes ARC Resources Ltd.'s (TSE:ARX) May Stock Price Reflect Its Future Growth?
ARC Resources is available at price-to-earnings ratio of 26.84x, showing us it is overvalued based on current earnings compared to the Oil and Gas industry average of 14.75x , and overvalued compared to the CA market average ratio of 14.61x. … However, to properly examine the value of a high-growth stock such as ARC Resources, we must reflect its earnings growth into the valuation. … Based on this growth, ARC Resources's stock can be considered slightly overvalued , based on the fundamentals.
Simply Wall St - – Full articleWhy Fundamental Investors Might Love ARC Resources Ltd. (TSE:ARX)
Help shape the future of investing tools and you could win a $250 gift card! … As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.
Simply Wall St - – Full articleHow Much Are ARC Resources Ltd. (TSE:ARX) Insiders Spending On Buying Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in ARC Resources Ltd. … The Last 12 Months Of Insider Transactions At ARC Resources. … In the last twelve months there was more buying than selling by ARC Resources insiders
Simply Wall St - – Full articleDoes ARC Resources Ltd.'s (TSE:ARX) P/E Ratio Signal A Buying Opportunity?
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. … We'll show how you can use ARC Resources Ltd.'s (TSE:ARX) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWhat To Know Before Buying ARC Resources Ltd. (TSE:ARX) For Its Dividend
(TSE:ARX) has been paying a dividend to shareholders. … Let's dig deeper into whether ARC Resources should have a place in your portfolio. … See our latest analysis for ARC Resources
Simply Wall St - – Full articleIs ARC Resources Ltd.'s (TSE:ARX) CEO Paid Enough Relative To Peers?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Myron Stadnyk's Compensation Compare With Similar Sized Companies. … has a market capitalization of CA$3.3b, and pays its CEO total annual compensation worth CA$4.5m.
Simply Wall St - – Full articleIntroducing ARC Resources (TSE:ARX), The Stock That Slid 67% In The Last Five Years
One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … That would generally be considered a positive, so we are surprised to see the share price is down. … We note that the dividend has fallen in the last five years, so that may have contributed to the share price decline.
Simply Wall St - – Full articleOnly 2 Days Left To Cash In On ARC Resources Ltd. (TSE:ARX) Dividend
(TSE:ARX) will be paying shareholders an upcoming dividend amount of CA$0.05 per share. … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout? … Is its earnings sufficient to payout dividend at the current rate
Simply Wall St - – Full articleHow Did ARC Resources Ltd.'s (TSE:ARX) 5.8% ROE Fare Against The Industry?
This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each CA$1 of shareholders' equity it has, the company made CA$0.058 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleCompany Info
Description
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. ARC Resources Ltd. was founded in 1996 and is headquartered in Calgary, Canada.
Details
| Name: | ARC Resources Ltd. |
| ARX | |
| Exchange: | TSX |
| Founded: | 1996 |
| CA$2,813,366,480 | |
| 353,438,000 | |
| Website: | http://www.arcresources.com |
| Address: |
ARC Resources Ltd. 308 - 4th Avenue South West, Suite 1200, Calgary, Alberta, T2P 0H7, Canada |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| TSX | ARX | Common Shares | The Toronto Stock Exchange | CA | CAD | 11. Jul 1996 | |
| OTCPK | AETU.F | Common Shares | Pink Sheets LLC | US | USD | 11. Jul 1996 | |
| DB | 8RC | Common Shares | Deutsche Boerse AG | DE | EUR | 11. Jul 1996 |
Number of employees
Current staff
Industry
| Oil and Gas Exploration and Production | |
| Energy |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/24 00:21 |
| End of day share price update: | 2019/05/23 00:00 |
| Last estimates confirmation: | 2019/05/17 |
| Last earnings filing: | 2019/04/30 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
