ARX vs. TOU Both terrific. Nat gas is a great place to be. LNG is a real thing, the world needs our energy. ARX has 20% cashflow per share growth, 8% production growth, very clean balance sheet, a bit cheaper relative to peers, 50-80% free cashflow. TOU is a pure play. If oil and nat gas prices can hold, both names are compelling. Use the charts to buy them. ARX is a bit more attractive right now.
Premiere gas company. Well regarded management. Owns own infrastructure to help manage costs, in right areas, very solid balance sheet. 18% free cashflow yield. Only overhang may be First Nations claims. Yield is 3.39%. (Analysts’ price target is $25.73)
(A Top Pick May 17/22, Down 16.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ARX has triggered its stop at $15. To remain disciplined, we recommend covering the position at this time. This will result in a next investment gain of 9%, when combined with previous buy recommendations.
Higher beta. More sensitive to the market than H, FTS, or one of the banks. On big down days, the spicy stocks suffer. One of the better quality nat gas producers. If bullish on nat gas, and he is, you can comfortably own it.
(A Top Pick May 17/22, Up 17%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ARX has achieved its $21 objective. To remain disciplined, we recommend covering half the position at this time and maintaining a stop at $15.
Company trading a very low valuation.
Long reserve life with 24% free cash flow yield.
Expectation is for aggressive share buybacks.
Will see a 5x multiple and a $35 stock price (85% upside).
Incredible free cashflow, with a FCF around 17%. Nat gas has spiked and probably going higher. Positioned well in light of disruptions from the war. Great producers, good operators. Still cheap in the sector. More to run. Yield is 2.02%. (Analysts’ price target is $23.88)
Believes Canadian energy can be major contributor to global energy security (ethically produced & alternative to Russia dependence).
Strong financials with recent dividend increase and strong free cashflow yields.
LNG exports starting to increase in Canada.
Expecting 8% production growth.
Stockchase Research Editor: Michael O'Reilly With over 929 million barrels of probable reserves focused in the prolific Montney and Pembina Cardium properties, we again reiterate ARX as a TOP PICK. Recent reported earnings doubled analyst expectations and the company is generating sizable positive cash flow. It pays a good dividend, backed by a payout ratio under 30% of cash flow. We continue to recommend a stop loss at $15, looking to achieve $21 -- upside potential over 19%. Yield 2.69% (Analysts’ price target is $20.96)
(A Top Pick Apr 19/21, Up 118%) The 7 Generations buy was great. Natural gas prices boosted shares after lagging last year. He lightened his holding as nat gas spiked, and is migrating more to crude oil. Not sure if the nat gas boom can sustain.
Focused on nat gas that's a big beneficiary of LNG. A 9-bagger from March 2020. Great strategic acquisitions. Only cloud on the horizon is the BC First Nations issue. One of the best managed in the sector.
(A Top Pick Mar 03/22, Up 74.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ARX has achieved its $19 objective. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $12) to $15.
Mainly a natural gas producer in western Canada. Very well run. Benefited from strong commodity prices. If you buy now, you run the risk of buying high.
(A Top Pick Jul 05/21, Up 65%) It still has good upside as do all energy stocks. It has been higher on price/book basis. Technical resistance at $19. Keep holding it.
(A Top Pick Mar 23/21, Up 131%) Still more upside in terms of share price appreciation and dividend growth. Incredibly well positioned for the long term. One of his biggest positions.
Arc Resources Ltd is a Canadian stock, trading under the symbol ARX.TO (previously ARX-T on Stockchase) on the Toronto Stock Exchange (ARX-CT). It is usually referred to as TSX:ARX or ARX.TO