Canada's ARC Resources Q1 production up 12%, net income jumps 44%

ARC Resources

28/04/2026 22:25

Overview

Canada oil and gas producer's Q1 production rose 12% yr/yr to record 418,522 boe/day

Q1 net income rose 44% yr/yr, driven by gains on risk management contracts and higher sales

On April 27, 2026, ARC announced it will be acquired by Shell in $22 bln cash and share deal, closing expected H2 2026

Outlook

ARC Resources maintains 2026 production guidance at 405,000-420,000 boe/day

Company expects 2026 capital expenditures of C$1.8 bln to C$1.9 bln

Production guidance does not assume natural gas curtailments due to low prices

Result Drivers

KAKWA PRODUCTION - Higher condensate production at Kakwa drove increases in funds from operations and overall production

MARKET ACCESS - Infrastructure and takeaway capacity enabled realized natural gas prices 81% above local benchmarks

KAKWA ACQUISITION - Asset acquisition in Kakwa expanded drilling inventory and added gas plant, supporting operational efficiencies

Company press release: ID:nCNWL5vDPa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 FFO Per Share
C$1.70


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "hold" and 1 "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$32.00, about 2.5% above its April 27 closing price of C$31.22

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

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(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.)