Peters & Co. Limited 2018 Energy Conference September 11, 2018
ARC at a Glance A Leading Montney Producer Committed to Long-term Value Creation and Shareholder Returns 6 billion 22 Years Enterprise Value of Success Proven Strategy of Global Reach Risk-managed 55% Canada 35% US Value…
ARC Is Building Sustainable Montney Businesses Businesses Sustain Production and Generate Free Cash Flow at Low Reinvestment Rates 150,000 Montney Businesses Sunrise Phase II Montney Production 120,000 Cardium & Non-core…
ARCs Vision & Principles of Business To Deliver Industry-leading Returns via Per Share Growth in Funds from Operations and Dividends Sustaining Capital Three-year Average Requirements F&D Costs Disciplined Capital Allocation 29%…
ARCs Plan ARCs 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 Maintain consistent 0.05 per…
ARCs 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 Optimization…
ARC Has Optionality in the Montney ARCs Montney Assets Are Strategically Located BC AB Lower Montney 10 kPa/m Line 1,000m Commodity Optionality Oil and Liquids 2,000m Red Creek Attachie Tower Egress Optionality Pouce…
ARC Has Identified Multiple Layers to Develop Significant Future Delineation Opportunities with the Development of Efficient and Sustainable Resource Base Attachie Septimus Sunrise Tower Parkland Dawson Pouce Coupe Montney A Upper…
ARC Is Growing Its Liquids Production Development Activities in the Lower Montney Are Focused on Growing Liquids Production (1) 16-13 Development activities at Dawson and Parkland will underpin condensate 01-10 production…
ARCs Attachie Asset Has Strong Liquids Potential Attachie West Is a Leading Development Opportunity within ARCs Portfolio Upper Montney 14-24 Condensate-rich Production Profile 2-4 pad Significantly Over-pressured Reservoir…
ARCs Parkland Delivering Strong Lower Montney Results Parkland Lower Montney Well Has Similar Free Liquids Production to the Best Wells at Tower and Attachie Cumulative Oil & Condensate Production (1) 200 Cumulative Oil & Condensate…
ARCs 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: 2018 to 2020: Facility and infrastructure spending…
ARC Has a Premium Oil & Liquids Production Mix 68% of ARCs H1 2018 Sales Revenue Was Derived from Oil & Liquids Production 90% of ARCs liquids production is made up of premium light oil and condensate ARCs Crude Oil & Condensate…
ARC Manages an Advantaged Diversification Strategy ARC Is Physically and Financially Diversifying to Downstream Markets to Manage Risk and to Achieve Optimal Pricing Less than 5% of ARCs expected total sales revenue is exposed to AECO…
ARC Can Sustain the Business at Low Prices Disposition Proceeds Have Given ARC the Ability to Counter-cyclically Invest in Growth Projects Total Forecasted Inflows & Outflows (1) 2017 to 2019 Net A&D Proceeds Dawson Phase III…
ARC Is Positioned for Continued Long-term Profitability Low Sustaining Capital Requirements, Efficient Investment of Growth Capital and Low-cost Funding Decisions Lead to Profitability Return on Average Capital Employed (1) 30% ROACE…
ARC Is Committed to Strong ESG Performance ARCs Leadership Culture Is Reflected in Its ESG Practices In 10 years of formal sustainability reporting, ARC has achieved the following: 47% reduction in recordable injury rates for…
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 for Future Per…
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