Overview

* Arc Resources ( AETUF ) Q2 net income rises to C$396.1 mln from C$239.5 mln in Q2, 2024

* Q2 production rises 8% yr/yr to 357,228 boe/day

* Funds from operations for Q2 at C$682 mln, driven by higher gas prices

* Co acquires Kakwa Assets for C$1.6 bln, revises 2025 guidance

Outlook

* Arc expects 2025 production between 385,000 and 395,000 boe per day

* Company plans C$1.85 to C$1.95 bln in 2025 capital expenditures

* Arc sees 2025 free funds flow between C$1.3 and C$1.5 bln

* Production in H2 2025 expected to exceed 410,000 boe per day

Result Drivers

* ATTACHIE PRODUCTION - Attachie asset contributed 26,833 boe/day, impacting Q2 results

* NATURAL GAS CURTAILMENT - Co curtailed natural gas production at Sunrise due to weak prices

* MARKET DIVERSIFICATION - Realized natural gas price of C$3.19 per Mcf, higher than AECO index

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS C$0.68

Q2 Net C$396.10

Income mln

Q2 FFO C$682.10

mln

Q2 C$699.10

Adjusted mln

Free

Cash

Flow

Q2 Capex C$496.30

mln

Q2 FFO C$1.17

Per

Share

Q2 Net C$1.29

Debt bln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

* Wall Street's median 12-month price target for ARC Resources Ltd ( AETUF ) is C$34.00, about 18.3% above its July 30 closing price of C$27.77

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)