ARC RESOURCES $26.49 - Toronto symbol ARX

ARC RESOURCES $26.49 (Toronto symbol ARX; Shares outstanding: 312.4 million; Market cap: $8.2 billion; TSINetwork Rating: Speculative; Dividend yield: 4.5%; www.arcresources.com) produces oil and natural gas in Western Canada. The company’s average daily output of 93,436 barrels of oil equivalent (including gas) is weighted 61% to gas and 39% to oil.

In the three months ended June 30, 2013, cash flow per share rose 14.0%, to $0.65 from $0.57. Production fell slightly, but a 91.6% rise in gas prices more than offset the lower output.

ARC’s long-term debt is $755.0 million, or a low 9.2% of its market cap. It trades at 10.3 times its forecast 2012 cash flow of $2.56 a share.

The company is spending $830 million on exploration and development this year, up 29.7% from $640 million in 2012. ARC aims to end 2013 with production of 100,000 barrels a day.

ARC Resources is still a buy.

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