Why did ARC Resources drop today?

The selloff followed the withdrawal of 2026 Attachie asset-level guidance after recent Upper Montney wells underperformed, reducing near-term growth visibility. National Bank downgraded the stock to Sector Perform with a C$26 target, and ATB trimmed its target to C$29. The market priced in slower growth and higher execution risk.

Is ARC Resources’ dividend safe after the Attachie reset?

The dividend yield is about 3.4% on C$0.78 per share with a 31% payout ratio. Leverage is modest at 1.17x net debt/EBITDA and interest coverage is 22.6x. Based on these metrics, we see room to maintain the base dividend while prioritizing buybacks until Attachie performance improves.

How is ARX.TO valued after the decline?

ARX.TO trades near 9.7x EPS, 4.3x operating cash flow, and 5.2x EV/EBITDA, with a 1.62x price-to-book. Free cash flow yield is roughly 9.9%. These levels look reasonable versus historical ranges and Canadian peers, though a sustained rerating likely needs better Attachie results and steadier liquids yields.

What are the key catalysts to watch next?

Focus on new Attachie well tests, condensate yields, and any facility optimization updates. Commodity moves in AECO gas and condensate pricing will also matter. The next major event is the April 28, 2026 earnings call, where management should update 2026 capital, buybacks, and productivity trends.

Global Market Insights

ARX.TO Stock Today, February 7: Attachie Setback Triggers Downgrade

ByHuzaifa Zahoor February 7, 2026February 7, 2026

ARC Resources faces a reset after pulling 2026 Attachie asset-level guidance following weaker Upper Montney well results. Today, ARX.TO fell 10.1% to C$22.83 as investors weighed slower growth against buybacks. National Bank cut the stock to Sector Perform with a C$26 target, while ATB trimmed to C$29. We break down what changed, how valuation stacks up, and the key catalysts Canadian investors should watch from Calgary’s gas‑weighted producer with strong Montney exposure.