Company News

BUZZ-ARC Resources: Sensitizing unending uncertainty - Raymond James

** Raymond James cuts PT of Canadian oil and natural gas producer ARC Resources to C$15.25 from C$16.25

** Co’s board approves cut in 2019 capital expenditure program to C$700 mln from C$775 mln

** Brokerage says capex cut shouldn’t come as a surprise and will help alleviate any uncertainty with co’s business strategy

** Co says 2019 capital program reduction relates to deferral of its Attachie West Phase I gas processing and liquids-handling facility

** Co expects 2020 capex between $550 mln and $625 mln

** TD Securities also cuts PT to C$12.50 from C$13.50 to reflect ARC’s more muted growth prospects and overall industry multiple compression

** 14 of 16 brokerages rate the stock “buy” or higher, 2 “hold”; their median PT is C$13

** Up to Thursday’s close, stock has fallen ~15% this year (Reporting by Shradha Singh in Bengaluru)