CIBC Capital Markets on Monday maintained its outperformer rating on the shares of ARC Resources (ARX.TO) and its C$27.50 price target ahead of the natural-gas producer's fourth-quarter results.

"ARC Resources reports after market on February 5, 2026. Our Q4/25 production estimate of 396 MBoe/d is in line with consensus of 394 MBoe/d and our cash flow estimate of $1.34/sh is in line with consensus of $1.35/sh. Our analysis of public data demonstrates Attachie volumes of ~28 Mboe/d through October and November. ARC also restored Sunrise natural gas volumes over this time period, which should see Q4/25 production volumes rise versus Q3/25. Attachie well performance in 2025 has been weaker than our expectation on average, but there have been positives to pay attention to. Production results from the 3-12 pad (six wells) are likely to be a near-term catalyst for Attachie. We did see the pad placed onstream in December, although run times were limited and demonstrated minimal hydrocarbons. We suspect the variability in well results at Attachie could see some movement in reserve bookings for year-end 2025, but 2024 vintage wells appear to be exceeding ARC's upper Montney type curve to this point. Success in the Lower Montney could also drive future resource and inventory upside. Proved plus probable reserves at year-end 2024 for Attachie included 146 undeveloped locations and 174 MMBoe." the investment bank noted.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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