Arc Resources Q2 profit rises as production jumps 8%

ARC Resources

31/07/2025 22:15

Overview

Arc Resources Q2 net income rises to C$396.1 mln from C$239.5 mln in Q2, 2024

Q2 production rises 8% yr/yr to 357,228 boe/day

Funds from operations for Q2 at C$682 mln, driven by higher gas prices

Co acquires Kakwa Assets for C$1.6 bln, revises 2025 guidance

Outlook

Arc expects 2025 production between 385,000 and 395,000 boe per day

Company plans C$1.85 to C$1.95 bln in 2025 capital expenditures

Arc sees 2025 free funds flow between C$1.3 and C$1.5 bln

Production in H2 2025 expected to exceed 410,000 boe per day

Result Drivers

ATTACHIE PRODUCTION - Attachie asset contributed 26,833 boe/day, impacting Q2 results

NATURAL GAS CURTAILMENT - Co curtailed natural gas production at Sunrise due to weak prices

MARKET DIVERSIFICATION - Realized natural gas price of C$3.19 per Mcf, higher than AECO index

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
C$0.68
Q2 Net Income
C$396.10 mln
Q2 FFO
C$682.10 mln
Q2 Adjusted Free Cash Flow
C$699.10 mln
Q2 Capex
C$496.30 mln
Q2 FFO Per Share
C$1.17
Q2 Net Debt
C$1.29 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

Wall Street's median 12-month price target for ARC Resources Ltd is C$34.00, about 18.3% above its July 30 closing price of C$27.77

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nCNWKvt8za

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)