ARC Resources

ARX.TO

Oil & Gas Exploration & Production · Energy

Exchange

Toronto Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Exceptional

Stability

Exceptional

Valuation

Strong

Dividends

Strong

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Winston Score History

The full picture

ARC Resources is a Canadian energy company that pulls oil, natural gas, and natural gas liquids out of the ground in Western Canada. Its main product is natural gas, and it sells to utilities, industrial buyers, and energy traders. ARC is one of Canada's largest independent oil and gas producers, with its most important asset being the Montney formation in British Columbia and Alberta — one of the richest natural gas deposits in North America.

ARC makes money by selling the hydrocarbons it produces, so its revenue rises and falls with commodity prices. The company operates entirely in Canada but exports a portion of its natural gas to international markets through liquefied natural gas terminals. With low production costs in the Montney, ARC has a cost advantage over many peers, which helps protect margins when prices drop. The key growth driver is rising Canadian LNG export capacity, which could open higher-priced Asian markets to ARC's gas — though a sustained drop in natural gas prices remains the primary risk.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+53.6% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-8.8% YoY

YoY Growth Rate

Earnings declining

Insider Activity

0.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

C$277M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

ARC Resources grew revenue 54% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

30.2%

Modest — 30.2% gross margin

Profit after running costs

Operating Margin

24.6%

Excellent — 24.6% operating margin

Return on the money invested

ROCE

17.5%

Strong — 17.5% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+28.7%

Fast-growing sales (+28.7% YoY)

Profit growth

EPS YoY

-3.1%

Earnings shrinking (-3.1% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

234%

Turns 234% of profit into real cash

Spare cash per sale

FCF Margin

19.5%

Converts sales into free cash efficiently (19.5%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.29

Conservative — low debt load (0.29)

Covers its interest

Interest Cover

11.42x

Comfortably covers interest (11.4x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

13.6x

no trend

Attractive valuation — P/E 13.6

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+2.5

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend

Dividend Yield

2.46%

no trend

Moderate income — 2.46% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+10.8%

no trend

Dividend growing fast (10.8% YoY)

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