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
Dividend of 8.02% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Undervalued with reasonable growth potential.
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: 8RC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
7.6%
8RC
3.3%
DE Oil and Gas
-0.3%
DE Market
1 Year Return
-16.4%
8RC
72.4%
DE Oil and Gas
14.9%
DE Market
Return vs Industry: 8RC underperformed the German Oil and Gas industry which returned 72.4% over the past year.
Return vs Market: 8RC underperformed the German Market which returned 14.9% over the past year.
Shareholder returns
| 8RC | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.6% | 3.3% | -0.3% |
| 30 Day | 12.6% | 12.4% | -0.1% |
| 90 Day | 14.8% | 30.6% | 7.1% |
| 1 Year | -9.0%-16.4% | 78.4%72.4% | 18.5%14.9% |
| 3 Year | -65.8%-70.9% | 67.2%51.2% | 20.0%9.5% |
| 5 Year | -61.3%-70.1% | 282.5%218.5% | 38.0%19.3% |
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
No news available
Valuation
Is ARC Resources undervalued compared to its fair value and its price relative to the market?
25.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 8RC (€4.84) is trading below our estimate of fair value (€6.47)
Significantly Below Fair Value: 8RC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 8RC is poor value based on its PE Ratio (18.6x) compared to the Oil and Gas industry average (10.4x).
PE vs Market: 8RC is good value based on its PE Ratio (18.6x) compared to the German market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: 8RC is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 8RC is good value based on its PB Ratio (0.8x) compared to the DE Oil and Gas industry average (1.1x).
Next Steps
Future Growth
How is ARC Resources forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
44.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 8RC's forecast earnings growth (44.2% per year) is above the savings rate (-0.4%).
Earnings vs Market: 8RC's earnings (44.2% per year) are forecast to grow faster than the German market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 8RC's revenue (13.8% per year) is forecast to grow faster than the German market (4.9% per year).
High Growth Revenue: 8RC's revenue (13.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 8RC is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has ARC Resources performed over the past 5 years?
11.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 8RC has a large one-off loss of CA$48.0M impacting its September 30 2019 financial results.
Growing Profit Margin: 8RC's current net profit margins (11.7%) are higher than last year (9.1%).
Past Earnings Growth Analysis
Earnings Trend: 8RC's earnings have grown by 11.5% per year over the past 5 years.
Accelerating Growth: 8RC's earnings growth over the past year (11.2%) is below its 5-year average (11.5% per year).
Earnings vs Industry: 8RC earnings growth over the past year (11.2%) exceeded the Oil and Gas industry -2.9%.
Return on Equity
High ROE: 8RC's Return on Equity (4.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is ARC Resources's financial position?
Financial Position Analysis
Short Term Liabilities: 8RC's short term assets (CA$188.5M) do not cover its short term liabilities (CA$360.1M).
Long Term Liabilities: 8RC's short term assets (CA$188.5M) do not cover its long term liabilities (CA$2.0B).
Debt to Equity History and Analysis
Debt Level: 8RC's debt to equity ratio (24.1%) is considered satisfactory.
Reducing Debt: 8RC's debt to equity ratio has reduced from 28.3% to 24.1% over the past 5 years.
Debt Coverage: 8RC's debt is well covered by operating cash flow (82.7%).
Interest Coverage: 8RC's interest payments on its debt are well covered by EBIT (6.3x coverage).
Balance Sheet
Inventory Level: 8RC has a high level of physical assets or inventory.
Debt Coverage by Assets: 8RC's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is ARC Resources's current dividend yield, its reliability and sustainability?
8.02%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 8RC's dividend (8.02%) is higher than the bottom 25% of dividend payers in the German market (1.37%).
High Dividend: 8RC's dividend (8.02%) is in the top 25% of dividend payers in the German market (3.57%)
Stability and Growth of Payments
Stable Dividend: 8RC's dividend payments have been volatile in the past 10 years.
Growing Dividend: 8RC's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (149%), 8RC's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 8RC's dividends in 3 years are not forecast to be well covered by earnings (105.6% payout ratio).
Next Steps
Management
What is the CEO of ARC Resources's salary, the management and board of directors tenure and is there insider trading?
5.9yrs
Average management tenure
CEO
Myron Stadnyk (56yo)
6.9yrs
Tenure
CA$4,661,418
Compensation
Mr. Myron M. Stadnyk, B.Sc., P.Eng., has been an Independent Director of PrairieSky Royalty Ltd. since June 18, 2018. Mr. Stadnyk has been the Chief Executive Officer and President of ARC Resources Ltd. si ...
CEO Compensation Analysis
Compensation vs Market: Myron's total compensation ($USD3.53M) is above average for companies of similar size in the German market ($USD1.50M).
Compensation vs Earnings: Myron's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.9yrs
Average Tenure
Experienced Management: 8RC's management team is seasoned and experienced (5.9 years average tenure).
Board Age and Tenure
6.5yrs
Average Tenure
65yo
Average Age
Experienced Board: 8RC's board of directors are considered experienced (6.5 years average tenure).
Insider Trading
Insider Buying: 8RC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 3,000 |
| Max Price | CA$4.34 |
| Entity | Individual |
| Shares | 3,000 |
| Max Price | CA$4.61 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | CA$4.46 |
| Entity | Individual |
| Shares | 10,000 |
| Max Price | CA$4.62 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & Senior VP |
| Shares | 78 |
| Max Price | CA$4.34 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 40,000 |
| Max Price | CA$3.98 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 20,000 |
| Max Price | CA$3.83 |
| Entity | Individual |
| Shares | 11,000 |
| Max Price | CA$3.99 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, President & Director |
| Shares | 2,500 |
| Max Price | CA$4.01 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & Senior VP |
| Shares | 6,000 |
| Max Price | CA$3.92 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & Senior VP |
| Shares | 10,000 |
| Max Price | CA$4.02 |
| Entity | Company |
| Shares | 9,800 |
| Max Price | CA$4.71 |
| Entity | Individual |
| Role | Head of Human Resources Vice President of Human Resources |
| Shares | 6,960 |
| Max Price | CA$4.43 |
| Entity | Individual |
| Role | Head of Marketing Vice President of Marketing |
| Shares | 5,000 |
| Max Price | CA$4.38 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & Senior VP |
| Shares | 10,000 |
| Max Price | CA$4.39 |
| Entity | Individual |
| Shares | 6,335 |
| Max Price | CA$4.52 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 20,000 |
| Max Price | CA$4.39 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 50,000 |
| Max Price | CA$4.85 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | CA$5.27 |
| Entity | Individual |
| Role | Head of Human Resources Vice President of Human Resources |
| Shares | 3,040 |
| Max Price | CA$5.39 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,700 |
| Max Price | CA$5.31 |
| Entity | Individual |
| Shares | 6,150 |
| Max Price | CA$5.15 |
| Entity | Individual |
| Role | Head of Marketing Vice President of Marketing |
| Shares | 3,145 |
| Max Price | CA$5.30 |
| Entity | Individual |
| Shares | 5,000 |
| Max Price | CA$5.37 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 50,000 |
| Max Price | CA$5.23 |
| Entity | Individual |
| Role | Chairman of the Board Independent Chairman of the Board |
| Shares | 5,000 |
| Max Price | CA$5.82 |
| Entity | Individual |
| Role | Chief Operating Officer COO & Senior VP |
| Shares | 5,000 |
| Max Price | CA$5.62 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, President & Director |
| Shares | 90,000 |
| Max Price | CA$5.74 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 25,000 |
| Max Price | CA$5.81 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Grant Zawalsky (59yo)
Corporate Secretary
- Tenure: 5.9yrs
Myron Stadnyk (56yo)
CEO, President & Director
- Tenure: 6.9yrs
- Compensation: CA$4.66m
P. Van Dafoe
CFO & Senior VP
- Tenure: 5.8yrs
- Compensation: CA$2.08m
Terry Anderson
COO & Senior VP
- Tenure: 6yrs
- Compensation: CA$2.63m
Lisa Olsen
Vice President of Human Resources
- Tenure: 3.9yrs
Ryan Berrett
Vice President of Marketing
- Tenure: 2.9yrs
Board Members
Kathleen O'Neill (65yo)
Independent Director
- Tenure: 10.5yrs
- Compensation: CA$245.00k
Fred Dyment (70yo)
Independent Director
- Tenure: 16.7yrs
- Compensation: CA$225.07k
Hal Kvisle (66yo)
Independent Chairman of the Board
- Tenure: 3.9yrs
- Compensation: CA$415.03k
Nancy Smith (56yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: CA$233.95k
John Dielwart (66yo)
Independent Director
- Tenure: 23.6yrs
- Compensation: CA$235.02k
Bill Sembo (65yo)
Independent Director
- Tenure: 6.1yrs
- Compensation: CA$220.00k
Herb Pinder (72yo)
Independent Director
- Tenure: 13.9yrs
- Compensation: CA$235.02k
Myron Stadnyk (56yo)
CEO, President & Director
- Tenure: 6.9yrs
- Compensation: CA$4.66m
David Collyer (63yo)
Independent Director
- Tenure: 3.1yrs
- Compensation: CA$229.93k
Farhad Ahrabi
Independent Director
- Tenure: 0.08yrs
Company Information
ARC Resources Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: ARC Resources Ltd.
- Ticker: 8RC
- Exchange: DB
- Founded: 1996
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: CA$2.265b
- Listing Market Cap: CA$1.545b
- Shares outstanding: 353.42m
- 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 propertie ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/08 21:16 |
| End of Day Share Price | 2019/12/06 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.