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  5. ARX: Please give your opinion of ARC Resources Y/E earnings from last night. [ARC Resources Ltd.]
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Q: Please give your opinion of ARC Resources Y/E earnings from last night. Thank you.
Asked by hank on February 09, 2024
5i Research Answer:

 ARX's Q4 profit fell 32% on lower natural-gas prices, even as production rose to a record it does not expect to reach again in 2024. EPS came in at $0.84 and did however beat estimates of $0.50. Revenue also beat estimates coming in at $1.6B versus forecasts of $1.24B. Funds from operations fell 29% to $699.2 million, or $1.16 per share. Production rose 1.5% to a record 365,248 barrels of oil equivalent per day, while its average price per barrel equivalent fell 37%. ARX said it expects 2024 production to drop to around 355,000 boepd, with capital spending of around $1.8 billion. On a production and cash generation basis, ARX beat analysts forecasts which makes it a nice quarter even though the company was hampered by weak oil prices which hurt it profitability wise. We think this was a solid quarter from ARX and it good to see record level production along with surpassing expectations.