ARC Resources: Buy The Dip

FluidsdocInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryARC Resources (AETUF) is rated a buy, trading at a discount despite recent production setbacks and missed Q3 estimates.Attachie production underperformed forecasts due to excess water and well design issues, but management expects improvements with refined engineering in 2025-2026.ARC targets 2026 exit production of 405-420K BOEPD on $1.8-1.9B capex, with projected free funds flow of $1.5B CAD.Shares remain attractive on EV/EBITDA and flowing barrel metrics, with analyst price targets implying ~15% upside from current levels. romrodinka/iStock via Getty Images Introduction We were pretty impressed with Arc Resources, (AETUF) the last time we covered them in mid-2023, giving it a buy in the $14's. The last 2.5 years have been reasonably kind to that call, with the stock grinding higher into mid-JuneThis article was written byFluidsdoc11.02K FollowersFollowFluidsdoc is an international oil industry veteran with 40 years of experience having worked on six continents and in over twenty countries around the world. He is an expert in the upstream oilpatch and an energy sector specialist. He is the leader of the investing group The Daily Drilling Report where he provides investment analysis for the oil and gas industry. Features of the group include: a model portfolio that covers all segments of upstream oilfield activity with weekly updates, ideas for both U.S and international energy companies, coverage from shale to deepwater drillers, technical analysis to identify catalysts, and more. Learn More.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. This is not advice to buy or sell this stock or ETF, despite the particular rating I am required to select in the SA template. I am not an accountant, CPA, or CFA. This article is intended to provide information to interested parties and is in no way a recommendation to buy or sell the securities mentioned. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to do their own due diligence before investing their hard-earned cash.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You