Arc Resources (OTC) (TSE:ARX)
OTHER OTC:ARX
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ARC Resources
(OTC:ARX)
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Rating:77Outperform
Price Target:
C$36.00
â–²(44.99% Upside)
Action:Reiterated
Date:05/28/26
The score is driven primarily by solid financial performance with strong profitability and operating cash flow, tempered by weaker free-cash-flow durability and higher leverage versus prior years. Technicals add support due to a clear uptrend and positive momentum, while valuation further lifts the score given the low P/E and moderate dividend yield.
Positive Factors
High Profitability Margins
Sustained high gross, operating and net margins indicate structural operating efficiency in ARC's upstream operations. Durable margins provide a buffer through commodity cycles, support internal reinvestment and shareholder distributions, and improve cash conversion even if prices fluctuate.
Negative Factors
Weak Free Cash Flow Durability
FFCF declining to 1.22B and under half of net income signals that capital spending or working-capital needs are consuming cash. Over months this limits capacity to pay down debt, raise dividends, or fund growth without external financing, reducing financial flexibility.
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Positive Factors
Negative Factors
High Profitability Margins
Sustained high gross, operating and net margins indicate structural operating efficiency in ARC's upstream operations. Durable margins provide a buffer through commodity cycles, support internal reinvestment and shareholder distributions, and improve cash conversion even if prices fluctuate.
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ARC Resources (ARX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$17.07B
Dividend Yield2.95%
Average Volume (3M)4.16M
Price to Earnings (P/E)11.8
Beta (1Y)0.24
Revenue Growth17.91%
EPS Growth11.40%
CountryCA
Employees438
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)2.53
Shares Outstanding566,245,400
10 Day Avg. Volume3,863,572
30 Day Avg. Volume4,161,621
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)1.81
Price to Sales (P/S)2.46
P/FCF Ratio11.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$32.84Price Target Upside32.28% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)3.06
Revenue Forecast (FY)C$7.01B
ARC Resources Business Overview & Revenue Model
Company Description
Operating within Canada, ARC Resources Ltd. is an energy company focused on the exploration, development, and production of crude oil, natural gas, and associated liquids. Its core assets include significant stakes in the Montney region, spanning ...
How the Company Makes Money
ARC Resources primarily makes money by producing and selling commodities—natural gas, condensate, crude oil, and other natural gas liquids (NGLs). Revenue is recognized based on volumes produced and delivered multiplied by realized prices, which a...
ARC Resources Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong corporate and financial performance—record production, robust free cash flow, meaningful shareholder returns, reserve growth and constructive gas pricing—while acknowledging a material operational challenge at the Attachie asset that prompted a prudent slowdown and possible reallocation of ~CAD 250 million of capital. Management emphasized discipline, balance sheet strength and confidence in other high-quality assets (notably Kakwa) to offset near-term uncertainty. Overall, positives in cash generation, shareholder returns, reserves and market access outweigh the asset-level execution risk at Attachie, which the company is addressing deliberately.Positive Updates
Record Quarterly and Annual Production
Q4 2025 production was a record 408,000 BOE/day (Terry), representing ~7% year-over-year growth and ~10% growth on a per-share basis; full-year 2025 average production was a record 374,000 BOE/day and the company expects annual average production to surpass 400,000 BOE/day in the coming year.
Negative Updates
Attachie Well Performance Variability and Development Delay
Attachie performance showed variability: early results from the most recent Upper Montney pads (3-12 area) have not met expectations. Management has adjusted the development schedule, slowed pad progression, removed asset-level guidance for Attachie and is allowing more time for technical analysis before committing further capital.
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Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Production
Q4 2025 production was a record 408,000 BOE/day (Terry), representing ~7% year-over-year growth and ~10% growth on a per-share basis; full-year 2025 average production was a record 374,000 BOE/day and the company expects annual average production to surpass 400,000 BOE/day in the coming year.
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Company Guidance
ARC left 2026 corporate guidance unchanged, targeting production of 405,000–420,000 BOE/d while investing $1.8–$1.9 billion of capital, and at current strip prices expects to generate roughly $1.2 billion of free funds flow; management reiterated it will return essentially all free cash flow to shareholders (growing the base dividend and continuing buybacks) and remain nimble on asset-level allocations, noting a roughly $250 million Attachie placeholder that may be reallocated across the portfolio.ARC Resources Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.56B | 6.08B | 5.10B | 5.66B | 8.64B | 5.11B |
| Gross Profit | 2.75B | 1.92B | 2.83B | 3.33B | 5.55B | 3.25B |
| EBITDA | 3.64B | 3.33B | 2.74B | 3.39B | 4.25B | 1.98B |
| Net Income | 1.45B | 1.28B | 1.12B | 1.60B | 2.30B | 786.60M |
Balance Sheet | ||||||
| Total Assets | 15.82B | 15.76B | 13.10B | 12.38B | 11.62B | 11.38B |
| Cash, Cash Equivalents and Short-Term Investments | 4.10M | 7.00M | 0.00 | 1.10M | 57.10M | 0.00 |
| Total Debt | 3.76B | 4.83B | 2.39B | 2.21B | 1.79B | 2.57B |
| Total Liabilities | 7.21B | 7.49B | 5.15B | 4.96B | 4.97B | 5.45B |
| Stockholders Equity | 8.61B | 8.26B | 7.95B | 7.43B | 6.65B | 5.93B |
Cash Flow | ||||||
| Free Cash Flow | 1.22B | 1.26B | 546.90M | 567.80M | 2.41B | 953.90M |
| Operating Cash Flow | 3.13B | 3.09B | 2.35B | 2.39B | 3.83B | 2.01B |
| Investing Cash Flow | -3.74B | -3.54B | -1.91B | -1.69B | -1.41B | -808.10M |
| Financing Cash Flow | 609.90M | 449.50M | -443.50M | -759.60M | -2.36B | -1.20B |
ARC Resources Technical Analysis
Neutral
24.83
Price Trends
29.98
Positive
28.07
Positive
26.46
Positive
Market Momentum
0.12
Positive
39.75
Neutral
8.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ARX, the sentiment is Neutral. The current price of 24.83 is below the 20-day moving average (MA) of 31.38, below the 50-day MA of 29.98, and below the 200-day MA of 26.46, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 39.75 is Neutral, neither overbought nor oversold. The STOCH value of 8.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ARX.
ARC Resources Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$5.01B | 10.52 | 16.78% | 5.77% | 29.94% | 57.11% | |
77 Outperform | C$17.07B | 11.78 | 17.43% | 2.95% | 17.91% | 11.40% | |
70 Outperform | C$8.58B | 11.52 | 13.89% | 2.99% | -24.78% | 5.03% | |
67 Neutral | C$23.36B | 32.93 | 4.40% | 4.79% | 7.06% | -45.27% | |
66 Neutral | C$18.65B | 22.08 | 7.70% | 6.33% | 80.64% | -50.20% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
TSE:ARX
ARC Resources
30.14
0.23
0.76%
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ARC Resources Corporate Events
DividendsFinancial Disclosures
ARC Resources Confirms Quarterly Dividend, Underscoring Stable Payouts
Positive
Mar 17, 2026
ARC Resources Ltd. has confirmed a quarterly dividend of $0.21 per share, payable on April 15, 2026, to shareholders of record as of March 31, 2026. The announcement brings the company’s trailing 12-month shareholder payments to $0.78 per sh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.