Jefferies ‘somewhat surprised’ by timing of’ ARC Resources-Shell deal

Jefferies is “somewhat surprised by the timing of” the ARC Resources (AETUF) and Shell (SHEL) deal announced this morning as the firm’s view had been that free cash flow generation and balance sheet “lent it substantial runway to address the issues at Attachie.” Selling now could imply Attachie may need even more time to address, while Shell’s interest in LNG Canada and dry gas needs “differentiates them as a buyer,” says the analyst, who has a Buy rating and C$30 price target on ARC shares.