Corporate Profile Corporate Summary ARC is a Canadian oil and gas producer in its 23rd year of delivering on its disciplined, returns-focused value proposition. Production (Q2 2018) 127,879 boe/day Reserves (2P Gross ? YE…
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 Principles of Business Delivering on Our Strategy of Risk-managed Value Creation through Focused and Disciplined Decision Making Sustainable total return to shareholders $6.3 billion in distributions /…
ARC?s Plan ARC?s Plan Is Fully Funded and Demonstrates Our Ongoing Focus on Profitability, Sustainability and Creating Optionality 2016 2017 2018 2019 Monthly dividend of Brought on Dawson Sustain Montney $0.05 per share…
2018 Guidance e CreationFcused on Profitability a 2018 Revised 2018 YTD Actuals 2018 Guidance Guidance Production Crude oil (bbl/day) (1) 25,000 - 27,000 25,000 - 26,500 24,965 Condensate (bbl/day) (2) 6,500 -…
Creating a Sustainable Dividend-paying E&P Company ARC?s continued focus on maintaining a strong balance sheet, targeting a 25 per cent payout ratio, improving capital efficiencies to preserve operating netbacks, maintaining decline…
ARC?s Funding Model ? ARC?s current funding model includes the reinvestment of proceeds from 2016 non-core dispositions, allowing ARC to counter-cyclically fund infrastructure and profitably grow the business ? Looking beyond 2019,…
Physical Marketing Activities Crude Oil & Liquids ARC?s Crude Oil & Condensate Production Mix 11% ~90% of ARC?s liquids production is made up of premium light oil 19% and condensate 69% 1% Light ( > 35?…
Natural Gas Flows & Sales Points (H1 2018 Pricing in US$/MMBtu) Station 2 Initial Tie-in of ARC?s Production: $1.18 ? 80% through the TransCanada…
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…
2,000m Attachie Tower Pouce Coupe Septimus Parkland Sunset Dawson Sunrise 3,000m Sundown Geographic Optionality ? Proximity of ARC Montney land base enables: ? Capital and operating efficiencies ?…
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 Tremendousl Development Potential from NE BC Montney Assets with TPIIP of 106.0 Tcf of Shale Gas and 10.5 Billion Barrels of Oi 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 Number of Locations GLJ has recognized >3,000 future gross drilling locations across ARC?s NE BC and Pouce…
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 Upper…
Outstanding Lower Montney Results Progressing from Appraisal to Development and Focused on Growing Liquids Production (1) 16-13 01-10 11-04 01-31 03-15 03-18…
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…
Tower & Attachie ? Integrated Learnings Transferring Exploitation Strategies Between Assets Is Resulting in Meaningful Improvements to Type Curves and Well Inventory 200 Tower 7-12…
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 t d and executed operations ? Improvements…
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…
Dawson Phase IV Cash Flow Model As With Each Project ARC Advances, Dawson Phase IV Will Generate Significant Free Cash Flow and Strong Full-cycle Returns Development Timeline: 20:to8 ? 201 Facility and nfrastructurei spending…
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 Key Projects Update Attachie ? Seven-well appraisal pad brought on production in Q2…
Attachie ? Planning for the Future Attachie West is a leading development opportunity within ARC?s portfolio due to its: ? Condensate-rich production profile ? Significantly over-pressured reservoir ? Extensive,…
Multi-layer Development Potential Upper Montney Lower Montney Existing Horizontal Wells, Development Existing Horizontal Wells, Pilots Potential Horizontal Wells…
Sunrise/Sunset ? Asset Details BookingsConfidenceandNextinPredictabilityStageofDevelopmentofResults Supports Strong Reserve 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 Focus on Liquids with Infrastructure Enhancements at Dawson Phase I & II and Planning for Dawson Phase IV Expansion ARC 13-7 Phase III Gas Plant (90 MMcf/day & 7.5 Mbbl/day) ARC 1-34…
Dawson ? Development Potential Liquids-rich Development Layer Below Core Acreage Drilling Inventory Montney Upper Lower Montney Upper Montney A Booked Reserves Wells Lower Montney…
Parkland/Tower ? Asset Details Profitable Business with Commodity Optionality: Oil, Condensate and Natural Gas Tower Parkland Tower Net Production (boe/day) ? Q2 2018 9,120 17,520 Liquids (bbl/day) 1,940…
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 Berrymoor Lindale NPCU Buck Creek MIPA PCU7 SPCU ARC…
ARC?s History and Future Strong Foundation for Continued Success Inveroears,y22 successfullyARC has chieveda the following: 10% $6.3 Billion Stayed within Transitioned of Distributions / Target of 1.0 to 1.5x Return on…
Consistent and Sustainable Strategy Delivering on Our Strategy of Risk-managed Value Creation Net Debt to Funds from Operations 1,600 Net Debt (LHS) Funds From Operations (LHS) 1,200 Net Debt to Funds…
Transformation of Our Business Montney Transformation Has Allowed ARC to Manage a Profitable Business through Commodity Price Cycles Production Profile 150,000 Non-Montney Crude Oil & Liquids…
Record Produced Reserves Replacement in 2017 Greater than 200% Reserves Replacement for 10th Consecutive Year ? 2017 development reserves adds largest in company history, with 320 per cent of produced reserves replaced ? Montney…
Key Reserve Information 836 MMboe 2P Reserves at Year-end 2017 Reserves at year-end, December 31, 2017 ? Proved Producing 230 MMboe ? Total Proved 506 MMboe ? Proved plus Probable 836 MMboe ? Crude and Tight Oil 131 MMbbl ?…
Key Reserve Information 836 MMboe 2P Reserves at Year-end 2017 Reserves at year-end, December 31, 2017 ? Proved Producing 230 MMboe ? Total Proved 506 MMboe ? Proved plus Probable 836 MMboe ? Crude and Tight Oil 131 MMbbl ?…
Risk Management Contract Positions Summary of Risk Management Contract Positions as at August 1, 2018 (1) H2 2018 2019 2020 2021 2022 2023 Crude Oil ? WTI (2) US$/bbl bbl/day US$/bbl bbl/day US$/bbl bbl/day US$/bbl…
FINANCIAL AND OPERATIONAL HIGHLIGHTS ($ millions, except per share amounts) 2018 2017 2016 FINANCIAL Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Sales of crude oil, natural gas, condensate, NGLs and other income (1) 344.4…
CORPORATE AND SHAREHOLDER INFORMATION DIRECTORS Harold N. Kvisle Chairman Myron M. Stadnyk President and Chief Executive Officer David R. Collyer (1) (2) John P. Dielwart (2) (3) Fred J. Dyment (3) (4) James…
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