With its second-quarter earnings, ARC Resources (OTCPK:AETUF) announced a reduced capital program and confirmed its previous production guidance. Besides, management reaffirmed its goal of delivering a sustainable dividend.
Yet, its dividend yield above 11% signals investors don't believe the company will reach its goals and maintain its dividend. But with its 2020 capital program, ARC Resources will become free cash flow positive, and the company can face several quarters of depressed oil and gas prices.
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Note: All the numbers in the article are in Canadian dollars unless otherwise