Anticipated 11.1% Revenue Growth Could Be a Game Changer for ARC Resources (TSX:ARX)

• On November 6, 2025, ARC Resources Ltd reported expectations for an 11.1% increase in quarterly revenue to C$1.35 billion for the period ending September 30, 2025, compared to C$1.21 billion a year ago.
• This forecasts a continued strengthening of ARC's financial performance ahead of results, with revenue growth estimates attracting heightened market attention.
• We’ll now examine how the anticipated revenue improvement may reinforce ARC Resources’ investment narrative and future earnings outlook.

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ARC Resources Investment Narrative Recap

Owning ARC Resources means believing in long-term value from Western Canada’s natural gas and liquids, underscored by operational scalability and increasing LNG export capacity. The projected 11.1% revenue growth has brought renewed optimism, but it does not remove the company’s vulnerability to cost inflation in project execution, the key short-term risk to earnings and free cash flow as ARC ramps up major developments.

The recently authorized share buyback program, allowing the repurchase of up to 57,967,896 shares, is especially relevant alongside revenue growth expectations. This signals continued confidence in capital returns to shareholders, reinforcing ARC’s catalyst of disciplined free cash flow allocation through dividends and repurchases but does not directly address underlying cost risks that could affect margins if commodity prices soften.

However, investors should be aware that even as revenue climbs, cost pressures from projects like Attachie Phase 2 could...

Read the full narrative on ARC Resources (it's free!)

ARC Resources' outlook anticipates CA$6.9 billion in revenue and CA$2.0 billion in earnings by 2028. This reflects a 6.8% annual revenue growth rate and a CA$0.5 billion increase in earnings from the current CA$1.5 billion level.

Uncover how ARC Resources' forecasts yield a CA$32.33 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community range from C$24 to C$45.43 per share, reflecting a broad spectrum of opinions. As you consider these differences, remember that rising operating costs on large expansion projects remain a closely watched issue for ARC’s future returns, inviting you to weigh several viewpoints on its earnings potential.

Explore 5 other fair value estimates on ARC Resources - why the stock might be worth 7% less than the current price!

Build Your Own ARC Resources Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ARC Resources research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free ARC Resources research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ARC Resources' overall financial health at a glance.

No Opportunity In ARC Resources?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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