AETUF - Arc Resources: Safe High-Yield Dividend Despite Pressured Oil And Gas Prices
One year ago, I argued Arc Resources' (AETUF) juicy dividend was safe. The Canadian oil and gas producer proved me right since it has been returning C$0.05/share to shareholders every month.
But the company's full-year results don't look encouraging: Funds from operations diminished, GAAP net income turned negative, and net debt increased. Also, reserves' net present value at the end of 2019 contracted compared to last year.
In addition, commodity prices have been dropping over the last several weeks. Yet, the company's dividend remains sustainable in the medium term.
Image source: DrillingEngineer via Pixabay
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