Tudor, Pickering, Holt on Friday maintained its buy rating on the shares of ARC Resources (ARX.TO) with a C$32.00 price target following first-quarter results from the Western Canadian natural-gas producer.

"Q1'25 headline results highlight AFFO/shr of C$1.45, above both TPHe/Street C$1.28/C$1.33. Compared to our model, while production slightly beat estimates (372.3mboepd vs. TPHe/Street 370.0/370.3) as Kakwa declines were better than expected, the cash flow beat owed to lower-than-expected cash taxes (C$0.07/shr of the delta), stronger gas realizations ($0.06/shr), and stronger liquids realizations (C$0.04/shr). On an absolute basis, C$857MM AFFO compared to TPHe/Street $752MM/$782MM, which alongside a beat on capex (C$457MM vs. TPHe/Street C$570MM/C$550MM; TPHe timing related with FY guidance intact at C$1.6-1.7B) drove better-than-expected FCF of C$400MM vs. TPHe/Street C$182MM/C$202MM. No change to FY guidance on production either (380-395mboepd)," analyst Jeoffrey Lambujon 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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