AETUF - ARC Resources: A Canadian Oil And Gas Producer For Dividend-Oriented Investors
ARC Resources (AETUF) reported production growth during Q1, which is in line with guidance for the full-year 2019. Despite an increasing portion of gas production, the company realized stable total netbacks thanks to its marketing diversification to some U.S. gas hubs.
Considering the stable results, my fair value estimate of C$12 per share didn't change. The discount the market offers is interesting. But, because of the challenging Canadian oil and gas environment, the market offers bigger discounts.
Yet, the dividend yield above 7% is attractive and the results confirmed the dividend is safe.