Q: Your comments on ARX earnings please, and whether or not you have any long term concerns for this company.
Is it worth adding to this name today for an investor who invests for the long term?
Is it worth adding to this name today for an investor who invests for the long term?
5i Research Answer:
We have some additional comments posted on the stock and recommendations itself. Q4 production did beat estimates. But EPS of 45c missed estimates of 57c; revenue of $1.64B beat estimates by 11%. EBITDA was $835M, 4% light. The stock is down on news that its Attachie drilling program reported results below expectations. Early production results from the most recent Montney pads brought onstream in late 2025 and early this year have been variable and below plan. ARX has in turn adjusted its development schedule to further evaluate well performance. This is disappointing, but it happens in the oil patch. It is not fatal.