CALGARY, AB, Aug. 30, 2021 /CNW/ - (TSX: ARX) ARC
Resources Ltd. ("ARC" or the "Company") announced today that the
Toronto Stock Exchange ("TSX") has accepted the notice filed by ARC
to commence a normal course issuer bid ("NCIB"). The NCIB allows
ARC to purchase up to 72,236,753 of its outstanding common shares
("Common Shares"), representing 10 per cent of the Company's public
float, over a 12-month period commencing September 1, 2021.
The NCIB will complement ARC's sustainable and growing dividend
in the Company's strategy to accelerate the return of capital to
shareholders. ARC believes that when large dislocations exist
between the share price and the intrinsic value of the business, an
NCIB can increase shareholder value and per share growth in the
business.
Under the NCIB, Common Shares may be purchased in open market
transactions on the TSX and other alternative trading platforms in
Canada and in accordance with the
TSX rules for NCIBs. The NCIB will commence on September 1, 2021 and expire no later
than August 31, 2022. The total number of Common Shares that
ARC is permitted to purchase is subject to a daily purchase limit
of 822,483 Common Shares, which represents 25 per cent of the
average daily trading volume of 3,289,932 Common Shares on the
TSX for the six months ended July 31,
2021; however, ARC may make one block purchase per calendar
week which exceeds the daily repurchase restrictions. Any
Common Shares that are purchased under the NCIB will be
cancelled.
The Company has, in connection with the NCIB, entered into an
automatic share purchase plan with a broker to enable ARC to
provide standard instructions and to purchase Common Shares on the
open market during self-imposed blackout periods. Outside of these
blackout periods, Common Shares may be purchased under the NCIB in
accordance with Management's discretion.
A copy of the Form 12 Notice of Intention to Make a Normal
Course Issuer Bid filed by ARC with the TSX can be obtained
from the Company upon request without charge.
As of the close of business on August 23,
2021, the Company had 724,952,382 Common Shares
outstanding.
This news release does not constitute an offer to sell
securities, nor is it a solicitation of an offer to buy securities,
in any jurisdiction.
Advisory on Forward-looking Information
Certain information regarding ARC set forth in this document
contains forward-looking statements that involve substantial known
and unknown risks and uncertainties. The use of any of the words
"plan", "expect", "intend", "believe", "should", "anticipate", or
other similar words, or statements that certain events or
conditions "may" or "will" occur are intended to identify
forward-looking statements. These statements are only predictions
and actual events or results may differ materially. Many factors
could cause ARC's actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or
on behalf of, ARC. In particular, forward-looking statements
contained in this document include, but are not limited to,
statements with respect to the anticipated benefits of the NCIB.
These forward-looking statements are subject to numerous risks and
uncertainties, including but not limited to, the risk that the
anticipated benefits of the NCIB may not be achieved. Readers are
cautioned that the foregoing list of factors is not exhaustive.
Although the forward-looking statements contained in this document
are based upon assumptions which Management believes to be
reasonable, the Company cannot assure investors that actual results
will be consistent with these forward-looking statements. With
respect to forward-looking statements contained in this document,
ARC has made assumptions regarding, among other things, the ability
of the Company to achieve the benefits of the NCIB. These
forward-looking statements are made as of the date of this document
and ARC disclaims any intent or obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or results, or otherwise, other than as required by
applicable securities laws.
About ARC
ARC Resources Ltd. is the largest pure-play Montney producer and one of Canada's largest dividend-paying energy
companies, featuring low-cost operations and leading ESG
performance. ARC's investment-grade credit profile is supported by
commodity and geographic diversity and robust risk management
practices around all aspects of the business. ARC's Common Shares
trade on the Toronto Stock Exchange under the symbol ARX.
Please visit ARC's website at
www.arcresources.com or contact Investor Relations:
E-mail: IR@arcresources.com
Telephone: (403) 503-8600
Fax: (403) 509-6427
Toll Free: 1-888-272-4900
ARC Resources Ltd.
Suite 1200, 308 - 4 Avenue SW
Calgary, AB T2P 0H7
SOURCE ARC Resources Ltd.