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ARC Resources Expands Montney Assets with $1.6 Billion Acquisition

Story Highlights
  • ARC Resources acquires Montney assets to boost production by 40,000 boe per day.
  • The acquisition aligns with ARC’s strategy to increase shareholder returns and maintain financial strength.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.

Confident Investing Starts Here:

ARC Resources ( (TSE:ARX) ) just unveiled an announcement.

ARC Resources Ltd. has announced a definitive agreement to acquire condensate-rich Montney assets in the Kakwa region from Strathcona Resources Ltd. for approximately $1.6 billion. This acquisition will enhance ARC’s production capacity by 40,000 boe per day and is expected to increase free funds flow per share by 10% in 2026. The transaction aligns with ARC’s strategy to grow free funds flow per share and return capital to shareholders through dividends and share repurchases, while also maintaining financial strength. The acquisition will expand ARC’s core Kakwa region, increase its Montney inventory duration, and provide operational synergies through owned infrastructure and cost efficiencies.

The most recent analyst rating on (TSE:ARX) stock is a Buy with a C$28.00 price target. To see the full list of analyst forecasts on ARC Resources stock, see the TSE:ARX Stock Forecast page.

Spark’s Take on TSE:ARX Stock

According to Spark, TipRanks’ AI Analyst, TSE:ARX is a Outperform.

ARC Resources receives a solid score of 74.9, reflecting its strong financial performance and positive corporate developments. While technical indicators show some caution, the company’s strategic initiatives and stable valuation metrics provide a strong foundation for future growth. Key strengths include robust profitability, effective cost management, and strategic market expansion through the LNG deal. Monitoring revenue growth and market conditions will be essential for sustaining its competitive position.

To see Spark’s full report on TSE:ARX stock, click here.

More about ARC Resources

ARC Resources Ltd. is a leading energy company in Canada, primarily focused on the production of crude oil, natural gas, and condensate. The company has a significant presence in the Montney region, known for its rich condensate resources, and is committed to maintaining a strong financial position while maximizing shareholder returns.

Average Trading Volume: 1,928,063

Technical Sentiment Signal: Strong Buy

Current Market Cap: C$16.18B

Learn more about ARX stock on TipRanks’ Stock Analysis page.

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