ARC Resources (ARX.TO) has announced the board of directors has approved a C$690M capex spending program for 2018 which will allow it to increase its production rate to an average of 130,000-134,000 barrels of oil-equivalent per day. Of this oil-equivalent production rate, approximately 40,000 barrels will be crude oil, condensate and NGL’s, with the balance of the oil-equivalent production rate to be supplied by the gas production.
The vast majority of the C$690M will be spent on the Montney gas plays, which will allow the company to ‘fill’ the Second Phase of its Sunrise gas plant, and have a clear path to also get Dawson Phase IV up and running. Although the company will spend hundreds of millions of dollars on its properties (both producing and infrastructure), the company’s monthly dividend of 5 cents per share appears to be safe.
Go to ARC’s website
The author has no position in ARC Resources. Please read the disclaimer
