Research Alert: CFRA Initiates Coverage On Arc Resources Ltd. With A Hold Rating

07:20 PM EDT, 03/26/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We begin our coverage with a price target of CAD30 and initiate our EPS estimates for FY 25 at CAD2.59 and FY 26 at CAD2.85, both more conservative than the Street. Our Hold rating is based upon ARX's production growth, free cash flow prospects, and dominant condensate market share baked into valuation. Since the transformative acquisition of Seven Generations in 2021, production has grown at a 6.3% CAGR. This mid-single-digit growth should continue over the intermediate term, as Attachie Phase I (2024) and Phase II (2028) begin to contribute near full capacity (40 Mboe/d). With Production growth and capex trending toward increased profitability, we expect FCF to increase materially in 2025/2026, but this is heavily dependent upon commodity pricing improving. We believe the coming years will be bullish for natural gas pricing, but see management's expectations (CAD1.8B in FCF in 2025) as more of a bull case than a base case scenario.

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