Canada's ARC Resources Q2 production rises on completion of turnaround activity across the asset base

ARC Resources

30/07/2026 22:29

Overview
Canada oil and gas producer's Q2 production rose 9% yr/yr to 390,465 boe/day
Q2 net income per share fell 9% yr/yr to C$0.62
Shell acquisition progressing, with closing expected in Q3 2026

Outlook
ARC Resources maintains 2026 capital budget at C$1.8 bln to C$1.9 bln
Company expects 2026 full-year production to average 405,000-420,000 boe per day
Production guidance excludes possible natural gas curtailments due to low prices

Result Drivers
PRODUCTION GROWTH - Q2 production rose 9% yr/yr, supported by completion of planned turnaround activity across the asset base
HIGHER REALIZED GAS PRICES - Infrastructure and takeaway capacity enabled higher realized natural gas prices relative to local benchmarks
OPERATING COST INCREASE - Operating expense per boe rose 25% from Q1 due to planned turnaround activity

Company press release: ID:nCNWF0J14a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
C$0.62
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "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$32.40, about 0.4% below its July 29 closing price of C$32.54
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
July 29 - Canada's Tourmaline Q2 earnings fall, maintains 2026 production outlook
July 29 - Canada's Vermilion Energy Q2 profit rises, raises annual production outlook
July 30 - Shell targets year-end decision on LNG Canada Phase 2

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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.)