Arc Resources: My Top Energy Pick Could More Than Double Free Cash Flow YoY
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Arc Resources' Attachie project is enhancing production with premium-priced condensates, potentially doubling its free cash flow by 2025. Despite a recent share price increase, ARC is still considered undervalued with a price target of C$30-35, offering a 30% upside. LNG contracts are expected to further boost free cash flow.
November 08, 2024 | 6:45 pm
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Arc Resources' Attachie project is expected to significantly increase production and free cash flow, with a potential doubling by 2025. The company remains undervalued despite recent share price increases, with a price target of C$30-35, indicating a 30% upside.
The Attachie project is enhancing ARC's production with premium-priced condensates, and rising gas prices are expected to more than double the company's free cash flow by 2025. The company is also benefiting from LNG contracts, which add exposure to international gas pricing. Despite a recent rise in share price, ARC is still considered undervalued, with a price target suggesting a 30% upside.
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