Corporate Profile Corporate Summary Production (Q1 2018) 131,016 boe/day Reserves (2P Gross ? YE 2017) (1) 836 MMboe Reserve Life Index (2P) (1)(2) 17.4 years Monthly Dividend $0.05 per share Annualized Returns since Inception…
ARC?s Vision To Be an E&P Business that Is Unique and Difficult to Replicate ? ARC?s vision is to increase shareholder value and deliver industry-leading returns via per share growth in funds from operations and dividends…
ARC?s Vision To Be an E&P Business that Is Unique and Difficult to Replicate ? ARC?s vision is to increase shareholder value and deliver industry-leading returns via per share growth in funds from operations and dividends…
ARC?s Plan cus o ARC?s Plan Is Fully Funded and De 2016 2017 Monthly dividend of Brought on Dawson $0.05 per share Phase III Sold Saskatchewan Rebuilt liquids assets production from divestments Eliminated DRIP and…
2018 Guidance Focused on Profitability and Long-term Value Creation 2018 Guidance 2018 YTD Actuals Production Crude oil (bbl/day) 25,000 - 27,000 25,037 Condensate (bbl/day) (1) 6,500 - 7,000 5,505 Natural gas (MMcf/day) 555…
Creating a Sustainable Dividend-paying E&P Maintaining Balance Sheet Strength Net Debt to Funds from Operations Targeting a Payout Ratio (1) of 25 Per Cent Cumulative Dividends and Historic Payout Ratio…
ARC can sustain the business in a US$50/bbl WTI and Cdn$1.50/GJ AECO price environment ARC?s Funding Model Total Forecasted Inflows & Outflows (3) 2017 to 2019 Net A&D Proceeds Dawson Phase III and…
Physical Marketing Activities Natural Gas Integrated physical marketing and financial risk management strategies enable ARC to effectively execute on its long-term plans ? Market Access ? Firm transportation pipeline…
Crude Oil & Liquids ARC?s Crude Oil & Condensate Production Mix 11% ~90% of ARC?s liquids production is made up of premium light oil 19% and condensate 69% 1% Light ( > 35? API ) Medium ( 25? to 35? API )…
Optionality in the Montney BC AB Significant Resource Potential ? Total petroleum initially-in-place (1) identified across ARC?s NE BC and Pouce Coupe assets includes: ? 10.5 billion barrels of tight oil ? 106.0 Tcf…
Multiple Layers to Develop Significant Future Delineation Opportunities with the Development of Efficient and Sustainable Resource Base Upper Montney Lower Montney Attachie Septimus Sunrise Tower Parkland…
Proven Development Model Inventory at All Stages Allows for Self-funding and Full-cycle Returns across Portfolio Growth for Future Phase Development Phase Free Cash Flow Phase ? Exploration ? Develop to Commercialize ?…
Competing Continentally ARC?s Efficient Cost Structure Competes with the Best Producers across North America ARC Tower Oil Single Well Economics Capital/Well Cdn$4.8MM Canadian 2P Finding & Development…
NE BC Montney Reserves and Risked Resources Tremendous Development Potential from NE BC Montney Assets with TPIIP of 106.0 Tcf of Shale Gas and 10.5 Billion Barrels of Oil Shale Gas Tight Oil, Condensate & NGLs 0.9 Tcf Oil 7.8…
Early Stages of Property Development (1) Large Identified Opportunity for Future Value Creation pe Montney assets GLJ has recognized >3,000 future gross drilling locations acros 1,000 ofLocations 800…
Montney Development Economics Strong Rates of Return across the Montney Portfolio Half-cycle Sunrise Dawson Parkland Dawson- Tower Ante Creek Economics (1)(2)(3) Parkland US$50/bbl WTI Upper Montney…
Outstanding Lower Montney Results Progressing from Appraisal to Development and Focused on Growing Liquids Production (1) 16-13 02-25 2017 to Q1 2018 Lower Montney Drilled and Completed…
Dawson-Parkland ? 2017 Lower Montney Results Strong Results from 2017 Lower Montney Appraisal Program Set the Stage for 2018 Development Activities Cumulative Natural Gas Production (MMcf) 2,000…
Montney Exploitation Approach Improves Efficiencies ARC Has Advanced Its Understanding of the Full-stack Development Potential for All Project Areas in Order to Execute Efficiently Montney Full-stack Development (1)…
Continuous Improvement in Safety Performance Strong Health and Safety Performance Supports Capital Efficiency Improvements ? ARC?s strong safety performance and capital efficiencies are the result of well-planned and executed…
Cost Management Low-cost Producers Deliver Superior Returns over Time ? Focused assets, characterized by high working interest, operatorship and ARC-owned and operated facilities, provide control over costs and operations…
Montney Cash Flow Models Next Three Growth Projects Will Contribute Significant Free Cash Flow Dawson Phase III Sunrise Phase II Gas: 90 MMcf/day Gas: 180 MMcf/day…
Environmental, Social & Governance Performance ARC?s Leadership Culture Is Reflected in Its ESG Practices ? ARC looks to develop resources in the most efficient manner while creating long-term value for shareholders and supporting…
Why Invest in ARC? A Differentiated Investment with Tremendous Opportunity Competitive Cost Profitable Deep Project Long-term Structure Investment Inventory Value Creation ? Top-tier Assets ? Balance Sheet Strength ? Growth…
Key Projects Update Advancing Projects across ARC?s Portfolio Montney BC AB Red Creek Attachie Tower Pouce Septimus Parkland Coupe Sunset Dawson Sunrise Sundown Key Projects…
Attachie ? Planning for the Future Attachie West ? Added 21 net sections of land in Q3 2017 ? Six pilot wells are on production through third-party facilities ? Building on strong results, an additional seven wells were…
Multi-layer Development Potential Upper Montney Lower Montney Existing Horizontal Wells, Development Existing Horizontal Wells, Pilots Potential Horizontal Wells…
Sunrise/Sunset ? Asset Details esourceConfidenceandNextin StagePredictabilityofDevelopmenofResults Supports Magnitude of R Sunset ARC 13-36 Sunrise Gas Plant (60 MMcf/day) & Phase II Gas Plant (1) (180…
Sunrise ? Development Potential Proven Productivity from Four-layered Development, Piloting Six-layered Development UpperMontney Upper Montney A Upper…
Dawson ? Asset Details Low-cost Natural Gas Play with Liquids Upside Net Production (boe/day) ? Q1 2018 43,740 Liquids (bbl/day) 3,700 ARC 13-7 Gas (MMcf/day) 240 Production Split % (Liquids / Gas) ~92% Gas Phase III Gas…
Dawson ? Development Potential Additional Development Layer Below Core Acreage Drilling Inventory Montney Upper Lower Montney Upper Montney A Booked Reserves Wells Lower Montney…
Parkland/Tower ? Asset Details Building a Profitable Business Tower Parkland Tower Net Production (boe/day) ? Q1 2018 10,910 18,620 Liquids (bbl/day) 2,310 8,910 Gas (MMcf/day) 52 58…
Parkland/Tower ? Development Potential Incremental Reserves Potential With Multi-layer Development Tower Parkland Upper Montney A Booked Reserves Montney Upper Upper Montney A+ Booked Reserves Lower…
Ante Creek ? Asset Details Significant Cash Flow with Substantial Growth Opportunities ARC 2-26 Gas Plant (20 MMcf/day) ARC 10-7 Gas Plant (30 MMcf/day & 12.5 Mbbl/day) ARC 10-36 Gas…
Ante Creek ? Development Potential Large Land Base and Down-spacing = Significant Drilling Inventory ARC Montney Lands ARC Montney Lands with 2P Reserves booked as of YE…
Pembina ? Asset Details High Working Interest of Light Oil Production, Competitive Operating Netbacks and Free Cash Flow Generation Net Production (boe/day) ? Q1 2018 11,340 Liquids (bbl/day) 9,440 Gas…
ARC?s History and Future Strong Foundation for Continued Success In 22 years, ARC has successfully achieved the following: 10% $6.2 Billion Stayed within Transitioned of Distributions / Target of 1.0 to 1.5x Return on…
Consistent and Sustainable Strategy Delivering on Our Strategy of Risk-managed Value Creation Net Debt to Funds from Operations 1,600 Net Debt (LHS) Funds From Operations (LHS) Net Debt to Funds from Operations (RHS)…
Transformation of Our Business Montney Transformation Has Allowed ARC to Manage a Profitable Business through the Cycles Production Profile 150,000 MontneyNon-MontneyGrowthCrudeOil & Liquids (bbl/day)…
Record Produced Reserves Replacement in 2017 Greater than 200% Reserves Replacement for 10th Consecutive Year ? 2017 development reserves adds largest in company history, with 320 per cent of produced reserves replaced ? Montney…
Key Reserve Information 836 MMboe 2P Reserves at Year-end 2017 Reserves at year-end, December 31, 2017 ? Proved Producing 230 MMboe ? Total Proved 506 MMboe ? Proved plus Probable 836 MMboe ? Crude and Tight Oil 131 MMbbl ?…
Risk Management Program Program Executed with a Long-term View ? The fair value of ARC?s risk management contracts at March 31, 2018 was a net asset of $248.7 million $ millions 250 200 150 100…
Risk Management Contract Positions Summary of Risk Management Contract Positions as at May 2, 2018 (1) Q2 to Q4 2018 2019 2020 2021 2022 2023 Crude Oil ? WTI (2) US$/bbl bbl/day US$/bbl bbl/day US$/bbl bbl/day US$/bbl…
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