Scotia Howard Weil Annual Energy Conference March 26, 2019
Corporate Profile Corporate Summary Production (Q4 2018) 136,502 boe/day Reserves (2P Gross – YE 2018) (1) 879 MMboe Reserve Life Index (2P) (1)(2) 17.4 years Monthly Dividend $0.05 per share Annualized Returns since Inception (3)…
Executing through a Difficult Commodity Backdrop Since 2014, ARC Has Delivered Long-term Shareholder Value and Its Share Count Is Unchanged since 2016 Dividends • >$1 billion in dividends • Current yield of 6% • Fully funded…
ARC Is a Compelling Investment ARC Is a Montney “Pure Play” Company with Moderate Declines That Delivers Meaningful Returns to Shareholders ARC (1) Source: Peters & Co. Limited E&P Overview Tables (March 11, 2019). Peer group includes:…
ARC Has Delivered on Its Commitments 2017 Monthly dividend of $0.05 per share Sold Saskatchewan assets Eliminated DRIP and SDP plans 118,671 boe per day 2018 2019 Bring on Sunrise Phase II to full capacity Progress multiple…
ARC’s Three-year Plan 2020 2021 Three-year Capital Investment Program Will Result in Meaningful Liquids Production and Cash Flow per Share Growth Maintain Share Count Bring on Dawson Phase IV in Q2 Bring on Ante Creek expansion in…
ARC’s Transition to Montney – The Results Are Clear Montney Businesses Are Delivering Sustainable Results Disciplined Capital Allocation Physical Market Access and Financial Risk Management Focus on Efficiency Improvements ~$0.9…
Building Sustainable Businesses in the Montney Businesses Sustain Production and Generate Strong Cash Flow at Low Reinvestment Rates Montney Businesses ~$575 Million Facility Investment $360 Million Facility Investment 540 MMcf/day of…
ARC’s Funding Model Inflows & Outflows (1) Post-Dawson Phase IV, Productive Capacity Will Allow ARC to Self-fund in a Modest Commodity Price Environment (1) Sustaining and growth capital do not have any standardized meaning and…
ARC’s 2019 Budget of $775 Million Delivers Annual Production of 135,000 to 142,000 boe per day and Advances Multi-year Infrastructure Development Projects BC AB Attachie Red Creek Septimus Tower Parkland Sunset Sunrise Sundown…
ARC’s Three-year Infrastructure Investment Plan Advancing Multiple Projects to Add Significant Processing Capacity; Production to Grow into Infrastructure Capacity over Time Projects Processing Capacity 2017 2018 2019 2020 2021 2022…
ARC’s Liquids Business Development Projects Targeting Organic Development of High-value Light Oil and Condensate Production ARC’s Crude Oil & Liquids Sales Mix (1) Oil Condensate NGLs 80% of ARC’s crude oil and liquids production…
ARC’s Natural Gas Business ARC Diversifies Its Price Exposure, Leading to Improved Price Realizations ARC’s Corporate Natural Gas Price Realized Gain on Risk Management Contracts Diversification Activities Average Price before…
ARC’s Montney Land Base Low-cost Montney Assets Driving Value Geographic Optionality Commodity Optionality Egress Optionality Multi-layer Optionality Oil and Liquids Dry Gas BC AB Red Creek Attachie Septimus Tower Parkland…
Record Produced Reserves Replacement in 2018 • Extensive development potential from Montney assets with total petroleum-initially-in-place of 14.3 billion barrels of tight oil and 101.8 Tcf of shale gas (1) 200 Per Cent Reserves…
ARC Has Multiple Layers to Develop Significant Future Delineation Opportunities with the Efficient Development of Sustainable Resource Base Attachie Septimus Sunrise Tower Parkland Dawson Pouce Coupe Montney A Montney B Montney C…
ARC Is Advancing Its Lower Montney Development Lower Montney CGRs Range from 25 to 200 bbl/MMcf Strong Liquids Results to Produce into Integrated Infrastructure of Greater Dawson Area Parkland F11-4 12 month cum: • 124 Mbbl…
ARC Is Investing in World-class Reservoir at Attachie Significantly Over-pressured Reservoir and Large Contiguous Land Position Foundation for Decades of Future Development BC AB North Montney Mainline Pembina 4-20 Battery (3…
ARC’s Attachie West Phase I Business Natural Gas Processing Capacity: 60 MMcf/day Condensate-handling Capacity: 10,000 bbl/day NGLs-handling Capacity: 4,000 bbl/day Profitably Investing in First Major Phase of Development While…
ARC’s ESG Performance Responsible Development Has Shaped the Company We Are Today and Underpins Sustainable Future Growth For more information and to view our 2018 Sustainability Report, visit www.arcresources.com/responsibility •…
ARC Delivers Long-term Shareholder Value ARC Has Managed a Profitable Business and Has Delivered Meaningful Returns to Its Shareholders Return on Average Capital Employed (1) >10% ROACE since Inception (1) Non-GAAP measure that does…
Why Invest in ARC? A Differentiated Investment with Tremendous Opportunity • Balance Sheet Strength • Full-cycle Returning Projects • Disciplined Execution • Managed Pace and Decline • Technology Deployment • Growth for Future…
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