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ARC Resources

TSX:ARX
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARX
TSX
CA$2B
Market Cap
  1. Home
  2. CA
  3. Energy
Company description

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 84 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
-2.9%
TSX:ARX
-2.1%
CA Oil and Gas
-0%
CA Market
1 Year Returns
-58.4%
TSX:ARX
-17.4%
CA Oil and Gas
-2.2%
CA Market
ARX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ARC Resources (ARX) -2.9% -5.3% -28% -58.4% -72.2% -78.8%
CA Oil and Gas -2.1% -1.3% -11.1% -17.4% -13.9% -39.5%
CA Market -0% -0.4% -2.6% -2.2% 8.1% -0.1%
1 Year Return vs Industry and Market
  • ARX underperformed the Oil and Gas industry which returned -17.4% over the past year.
  • ARX underperformed the Market in Canada which returned -2.2% over the past year.
Price Volatility
ARX
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ARC Resources.

TSX:ARX Discounted Cash Flow Data Sources
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 8.7%
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.

Calculation of Discount Rate/ Cost of Equity for TSX:ARX
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 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.921 (1 + (1- 26.5%) (41.24%))
1.134
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.134 * 5.96%)
8.71%

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.

TSX:ARX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 8.71%)
2020 42.50 Analyst x2 39.10
2021 163.00 Analyst x2 137.93
2022 477.00 Analyst x1 371.32
2023 479.00 Analyst x1 343.01
2024 483.20 Est @ 0.88% 318.30
2025 488.99 Est @ 1.2% 296.32
2026 495.95 Est @ 1.42% 276.46
2027 503.78 Est @ 1.58% 258.34
2028 512.30 Est @ 1.69% 241.66
2029 521.35 Est @ 1.77% 226.24
Present value of next 10 years cash flows CA$2,508.68
TSX:ARX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$521.35 × (1 + 1.95%) ÷ (8.71% – 1.95%)
CA$7,862.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$7,862.62 ÷ (1 + 8.71%)10
CA$3,411.91
TSX:ARX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$2,508.68 + CA$3,411.91
CA$5,920.59
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$5,920.59 / 353.44
CA$16.75
TSX:ARX Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$16.75
Current discount Discount to share price of CA$6.39
= -1 x (CA$6.39 - CA$16.75) / CA$16.75
61.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ARC Resources is available for.
Intrinsic value
>50%
Share price is CA$6.39 vs Future cash flow value of CA$16.75
Current Discount Checks
For ARC Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
TSX:ARX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$0.30
TSX:ARX Share Price ** TSX (2019-07-22) in CAD CA$6.39
Canada Oil and Gas Industry PE Ratio Median Figure of 59 Publicly-Listed Oil and Gas Companies 13.01x
Canada Market PE Ratio Median Figure of 539 Publicly-Listed Companies 15.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ARC Resources.

TSX:ARX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ARX Share Price ÷ EPS (both in CAD)

= 6.39 ÷ 0.30

21.65x

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?
Raw Data
TSX:ARX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
32.5%per year
Canada Oil and Gas Industry PEG Ratio Median Figure of 35 Publicly-Listed Oil and Gas Companies 0.66x
Canada Market PEG Ratio Median Figure of 246 Publicly-Listed Companies 1.23x

*Line of best fit is calculated by linear regression .

TSX:ARX PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.65x ÷ 32.5%

0.67x

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?
Raw Data
TSX:ARX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$10.10
TSX:ARX Share Price * TSX (2019-07-22) in CAD CA$6.39
Canada Oil and Gas Industry PB Ratio Median Figure of 223 Publicly-Listed Oil and Gas Companies 0.78x
Canada Market PB Ratio Median Figure of 2,445 Publicly-Listed Companies 1.46x
TSX:ARX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ARX Share Price ÷ Book Value per Share (both in CAD)

= 6.39 ÷ 10.10

0.63x

* 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.
X
Value checks
We assess ARC Resources's value by looking at:
  1. 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. )
  2. 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)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. 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

 How is ARC Resources expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

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!
Annual Growth Rate
32.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ARC Resources expected to grow at an attractive rate?
  • 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
Raw Data
TSX:ARX Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:ARX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 32.5%
TSX:ARX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 7.8%
Canada Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Canada Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*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
Raw Data
TSX:ARX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:ARX Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 1,445 819 124 4
2019-12-31 1,243 726 46 4
TSX:ARX Past Financials Data
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 1,326 834 128
2018-06-30 1,202 752 131
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.

Super high growth metrics
High Growth Checks
  • ARC Resources's earnings are expected to grow significantly at over 20% yearly.
  • ARC Resources's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:ARX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months 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 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ARX Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.34 0.34 0.34 1.00
2020-12-31 0.37 0.58 0.24 7.00
2019-12-31 0.17 0.41 0.08 6.00
TSX:ARX Past Financials Data
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.
X
Future performance checks
We assess ARC Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare ARC Resources's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
ARC Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ARC Resources Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ARX Past Revenue, Cash Flow and Net Income Data
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 1,326.30 128.00 86.50
2018-06-30 1,202.30 131.40 75.50
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

*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).
X
Past performance checks
We assess ARC Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of ARC Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x 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.
Raw Data

All data from ARC Resources Company Filings, last reported 3 months ago.

TSX:ARX Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,568.80 877.60 147.90
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
  • ARC Resources's level of debt (24.6%) 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 24.6% today).
  • Debt is well covered by operating cash flow (90.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6x coverage).
X
Financial health checks
We assess ARC Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ARC Resources has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
9.39%
Current annual income from ARC Resources dividends. Estimated to be 9.39% next year.
If you bought CA$2,000 of ARC Resources shares you are expected to receive CA$188 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ARC Resources's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.07%).
  • 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.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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.
Raw Data
TSX:ARX Annualized Past and Future Dividends
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 37 Stocks 4.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
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.

TSX:ARX Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.60 8.00
2019-12-31 0.60 9.00
TSX:ARX Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-07-15 0.600 9.344
2019-04-15 0.600 8.059
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
2009-05-15 1.200 6.819
2009-04-16 1.440 8.981
2009-03-17 1.440 9.711
2009-02-13 1.440 11.046
2009-01-13 1.440 8.659
2008-12-05 1.800 9.694
2008-11-17 2.400 12.957
2008-10-15 2.880 16.239
2008-09-08 2.880 13.523
2008-08-15 3.360 11.756

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.
Current Payout to shareholders
What portion of ARC Resources's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess ARC Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of ARC Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Myron Stadnyk
COMPENSATION CA$4,661,418
AGE 56
TENURE AS CEO 6.5 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:

5.5
Average Tenure
  • 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

TITLE
CEO, President & Director
COMPENSATION
CA$5M
AGE
56
TENURE
6.5 yrs

P. Van Dafoe

TITLE
CFO & Senior VP
COMPENSATION
CA$2M
TENURE
5.4 yrs

Terry Anderson

TITLE
COO & Senior VP
COMPENSATION
CA$3M
TENURE
5.6 yrs

Ryan Berrett

TITLE
Vice President of Marketing
TENURE
2.5 yrs

Lisa Olsen

TITLE
Vice President of Human Resources
TENURE
3.5 yrs

Grant Zawalsky

TITLE
Corporate Secretary
AGE
59
TENURE
5.5 yrs
Board of Directors Tenure

Average tenure and age of the ARC Resources board of directors in years:

6.5
Average Tenure
65
Average Age
  • The tenure for the ARC Resources board of directors is about average.
Board of Directors

Hal Kvisle

TITLE
Chairman of the Board
COMPENSATION
CA$415K
AGE
66
TENURE
3.5 yrs

Myron Stadnyk

TITLE
CEO, President & Director
COMPENSATION
CA$5M
AGE
56
TENURE
6.5 yrs

John Dielwart

TITLE
Independent Director
COMPENSATION
CA$235K
AGE
66
TENURE
23.2 yrs

Herb Pinder

TITLE
Independent Director
COMPENSATION
CA$235K
AGE
72
TENURE
13.5 yrs

Kathleen O'Neill

TITLE
Independent Director
COMPENSATION
CA$245K
AGE
65
TENURE
10.1 yrs

Nancy Smith

TITLE
Independent Director
COMPENSATION
CA$234K
AGE
56
TENURE
3.4 yrs

David Collyer

TITLE
Independent Director
COMPENSATION
CA$230K
AGE
63
TENURE
2.7 yrs

Fred Dyment

TITLE
Independent Director
COMPENSATION
CA$225K
AGE
70
TENURE
16.3 yrs

Bill Sembo

TITLE
Independent Director
COMPENSATION
CA$220K
AGE
65
TENURE
5.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by ARC Resources individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
17. Jun 19 Buy Lisa Olsen Individual 17. Jun 19 17. Jun 19 6,960 CA$6.67 CA$46,423
14. Jun 19 Buy Ryan Berrett Individual 14. Jun 19 14. Jun 19 5,000 CA$6.58 CA$32,900
14. Jun 19 Buy P. Van Dafoe Individual 14. Jun 19 14. Jun 19 10,000 CA$6.60 CA$66,000
13. Jun 19 Buy Kristen Bibby Individual 13. Jun 19 13. Jun 19 6,335 CA$6.79 CA$43,015
13. Jun 19 Buy Frederick Dyment Individual 12. Jun 19 12. Jun 19 20,000 CA$6.60 CA$132,000
03. Jun 19 Buy Frederick Dyment Individual 31. May 19 31. May 19 50,000 CA$7.30 CA$364,365
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
X
Management checks
We assess ARC Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Why ARC Resources Ltd.'s (TSE:ARX) High P/E Ratio Isn't Necessarily A Bad Thing

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for ARC Resources: P/E of 21.52 = CA$6.35 ÷ CA$0.30 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each CA$1 of company earnings. … TSX:ARX Price Estimation Relative to Market, July 22nd 2019 Its relatively high P/E ratio indicates that ARC Resources shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

Does ARC Resources Ltd. (TSE:ARX) Have A Place In Your Dividend Stock Portfolio?

(TSE:ARX) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. In this case, ARC Resources likely looks attractive to investors, given its 9.2% dividend yield and a payment history of over ten years. It would not be a surprise to discover that many investors buy it for the dividends. Remember though, given the recent drop in its share price, ARC Resources's yield will look higher, even though the market may now be expecting a decline in its long-term prospects. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Paying out such a high percentage of cash flow suggests that the dividend was funded from either cash at bank or by borrowing, neither of which is desirable over the long term. … Cash is slightly more important than profit from a dividend perspective, but given ARC Resources's payouts were not well covered by either earnings or cash flow, we would definitely be concerned about the sustainability of this dividend.

Simply Wall St -

Is ARC Resources (TSE:ARX) Using Too Much Debt?

When we think about a company's use of debt, we first look at cash and debt together. … Because it carries more debt than cash, we think it's worth watching ARC Resources's balance sheet over time. … We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover).

Simply Wall St -

The ARC Resources (TSE:ARX) Share Price Is Down 79% So Some Shareholders Are Rather Upset

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. … As it happens, ARC Resources's TSR for the last 5 years was -74%, which exceeds the share price return mentioned earlier.

Simply Wall St -

How Much Of ARC Resources Ltd. (TSE:ARX) Do Institutions Own?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … Insider Ownership Of ARC Resources The definition of company insiders can be subjective, and does vary between jurisdictions. … It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

Simply Wall St -

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 -

Does 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 -

Why 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 -

How 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 -

Does 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 -

Company 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$2,258,468,820
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
Staff numbers
444
ARC Resources employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/23 00:33
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/19
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.