ARC RESOURCES Launched July 1996 as ARC Energy Trust - 19% annual return since inception (to May 16) - 26.58 per share in total dividends (to May 16) -Total dividends of 3.9 billion (to May 16) - Converted to a dividend paying…
2010 HIGHLIGHTS Annual production averaged a record 73,954 boe per day Cash flow from operating activities was 673.9 million (2.55 per share) Dividends were 313.5 million (1.20 per share) Total earnings were 260.8 million (0.99…
Q1 2011 HIGHLIGHTS Q1 production averaged 73,880 boe per day Funds from operations were 194.1 million(0.68 per share) Dividends were 85.5 million (0.30 per share) Total earnings were 65.2 million (0.23 per share) Number of wells…
Q1 2011 OPERATING PERFORMANCE ( millions except per share and per boe numbers) Q1 2011 Q1 2010 Change Funds from operations 194.1 167.9 +16% Per share 0.68 0.67 +1% Earnings 65.2 149.8 -56% Per share 0.23 0.59 -61% Dividends 85.5…
INCOME AND GROWTH BOTH ARE POSSIBLE ARC has a 14 year history of risk managed value creation - Provided a 19% annual return since inception - Paid out 3.9 billion in total dividends - 26.58 / unit - Grown absolute production from…
ARC RESOURCES TOP TIER GROWTH PLUS INCOME According to recent Credit Suisse estimates, ARC has one of the highest expected total returns as measured by organic growth rate plus free cash flow yield in the Canadian Energy group…
EXCELLENT FD&A PERFORMANCE Replaced 502% of production in 2010 at an all in FD&A of 9.21/boe Drill bit F&D was 6.47/boe FD&A 25 20 15 10 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010
500 PER CENT RESERVE REPLACEMENT Third successive year of greater than 200% reserve replacement from the drill bit Proved plus probable reserves increased 29% to 487 mmboe Development Acquisitions 700% 600% 500% 400% 300% 200%…
10% COMPOUND ANNUAL GROWTH IN RESERVES PER SHARE (ADJUSTED) An investor who participated in the dividend re-investment plan since inception would have enjoyed a 10% compound annual growth in the reserves attributed to their…
PROPERTY OVERVIEW
Total Company 2011 BUDGET - UNCONVENTIONAL OPPORTUNITIES FORM THE BASE NEBCNWAB 228 MM NORTHAB Capital Avg Gross 35,400 boe/d 122.7 MM mm Volumes Wells 35 wells 10,100 boe/d (boe/d) 19 wells Operated 560 72,000 166 74,000 Non-…
Total Company 2011 BUDGET 86% of WELLS DRILLED WILL BE HORIZONTAL NORTH AB 1 TOTAL OPERATED 2011 18 NE BC/NW AB 24 Horizontal Vertical 7 REDWATER 142 28 1 PEMBINA 86% of wells are Horizontal 13 1 41 CENTRAL AB SE…
DAWSON BRITISH COLUMBIA
MONTNEY LANDS MAJOR GROWTH ENGINE Dawson and the West ATTACHIE Montney lands are a significant growth engine for ARC With greater than 10 Tcf of gas classified as DGIIP, 0.8 Tcf ARCs current plans call for the construction of…
MONTNEY LANDS MAJOR GROWTH ENGINE ARC had our independent reserves evaluator assess the resource potential of our main BC Montney lands, excluding Attachie Reserves and Resources - December 31, 2010 (1) Estimated Economic…
DAWSON 2011 BUDGET PLANS Capital: Total Capital 98 MM Drilling (14 wells): Horizontal 13 Vertical 1 Oil/Gas 0/14 Production: Year End 2010 110 mmcf/d Year End 2011 165 mmcf/d Year Average 150 mmcf/d Strategy: Grow production…
DAWSON PRODUCTION TARGET 165 MMCF/D IN Q2 2011 Gas MMcf/d 120.0 100.0 80.0 60.0 40.0 20.0 0.0 First 60 mmcf/d gas plant on stream May 2010, second 60 mmcf/d gas plant started up in April, 2011 currently running at full…
2010 DAWSON GAS PLANT Dawson 5-35 Gas Plant (Phase 2) Construction was completed on time and on budget Early April 2011 start-up of Phase 2 plant, with full production by the end of the month Progress of the gas plant can be…
PARKLAND LIQUIDS RICH GAS 0.8 TCF GAS 0.8 Tcf of gas classified as DGIIP - P+P Reserves of 227 Bcfe booked on 17 net sections Current production of 40 mmcf/d plus 1,200 b/d liquids FIELD LIQUIDS CONTENT (BBLS/MMCF) Parkland…
PARKLAND 2011 BUDGET PLANS Capital: Total Capital 67 MM Drilling (13 wells): Horizontal 11 Vertical 2 Oil/Gas 0/13 Production: Year-End 2010 8,000 boe/d Year-End 2011 10,070 boe/d Year Average 8,435 boe/d Strategy: Grow…
WEST MONTNEY RESOURCE 5.5 TCF GAS 5.5 Tcf of gas classified as ATTACHIE DGIIP - P+P Reserves of 253 Bcf at year-end 2010 (approximately 5 per cent of DGIIP) 5.5 Tcf Current production of approximately 7 mmcf/d net to ARC…
SUNRISE/SUNSET 2011 BUDGET PLANS Capital: ATTACHIE Total Capital 25 MM Drilling (3 wells): Horizontal 2 Vertical 1 Oil/Gas 0/3 Production: 5.5 Tcf Year End 2010 0 boe/d Year End 2011 2,301 boe/d Year Average 609 boe/d…
ATTACHIE NEW OPPORTUNITY UNDEFINED POTENTIAL 13 mmcfd test Prospective land base of 101 sections Land offsets a 13 mmcf/d Montney test from a third party ARC plans to drill 4 verticals and 2 horizontals by the end of 2011
ANTE CREEK
ANTE CREEK ASSET DETAILS Current production 8,000 boe/d Reserves 47 mmboe Working interest 98% Reserve life index 16 years (based on current production) Production split 42% oil & NGLs / 58% natural gas ARC owns a large oil battery…
ANTE CREEK - ANOTHER MONTNEY GROWTH STORY 9,000 8,000 Gas Liquids 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 2002 01 2001 01 2001 04 2001 07 2001 10 2002 04 2002 07 2002 10 2003 01 2003 04 2003 07 2003 10 2004…
ANTE CREEK FUTURE OPPORTUNITIES R26 R25 R24 R23 R22W5 T69 W G _ T69 Land holding of 245 gross and 238 net 1 36 6 31 1 36 6 31 1 36 6 31 1 36 6 31 sections W Horizontal multi…
PEMBINA ALBERTA
PEMBINA ARCs HOLDINGS Gross Operated Wells in the Pembina Cardium Wells Penn West 2,458 39% ARC 1,423 23% Bonterra 694 11% Imperial 362 6% Enerplus 334 5% PetroBakken 118 2% ARC is the second largest operator in the Pembina…
PEMBINA HORIZONTAL DRILLING PLANS 2010 drilled 25 horizontals and 3 vertical wells Initial production results are encouraging average IP rates are 150 200 boe/d but with variability Geology of the Pembina field is quite variable…
PEMBINA 30 DAY INITIAL PRODUCTION RATES ALL WELLS ARCs Wells Median Well approximately 150 boe/d
PEMBINA OPPORTUNITY ARC is optimistic about the opportunity for increased recovery at Pembina from the application of horizontal drilling and completion technology: In the heart of Pembina, excluding the halo lands, a 1% increase in…
GOODLANDS MANITOBA
GOODLANDS 2011 BUDGET PLANS Capital: Wells 17 MM Drilling (17 wells): Horizontal 17 gross (14 net) Vertical 0 Oil/Gas 17/0 Production: Year End 2010 1,300 boe/d Year End 2011 1,800 boe/d Year Average 1,800 boe/d Strategy:…
REDWATER CO2 EOR CO2 injection was completed at the Redwater EOR recovery pilot project. ARC is conducting technical analysis to determine to what extent the pilot has been successful in mobilizing incremental volumes of oil.…
SUMMARY
WHERE TO FROM HERE Our vision remains the same: Leading oil and gas entity as measured by: Quality of assets Leadership Long-term return to investors Risk managed value creation We expect to continue to provide both growth and…
APPENDIX
2011 CAPITAL PROGRAM TARGETS 12 PER CENT GROWTH ( Millions) 2009 (a) 2010(a) 2011(b) Development 187 354 409 Development Facilities 73 72 54 Maintenance 11 15 29 Optimization 8 11 18 Land & Seismic 11 65 17 Unconventional Gas 16 1 5…
HEDGING UPDATE AS OF APRIL 29, 2011 Liquids 2011 2012 Oil (bbls/d) 20,000 18,000 Sold Call (US/bbl)* 89.51 90.00 Bought Put (US/bbl) 84.51 90.00 Sold Put (partial volumes) 61.15 60.00 Gas 2011 2012 Gas (mcf/d) 164,200 76,700…
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