ARC RESOURCES LTD. Update with Myron Stadnyk May 1, 2019
ARCs Team
Celebrating 20 Years at ARC in 2019 Van Dafoe Lawrence Haugen Kevin Jones Trevor Richels Dave Sorkilmo Senior VP & Lead Operator, Manager, Field Operations Foreman, Staff Reservoir Chief Financial Officer Youngstown Northern…
Diversity at ARC Corporate Head Count Women in the Workforce 600 60 2015 2016 2017 2018 2019 525 450 45 375 300 2014 2015 2016 2017 2018 30 Age Demographics 160 120 15 80 40 0 Women in Supervisory/ Management/…
Excellent Safety Performance ARC is committed to Ongoing employee and Detailed audit and providing a safe work contractor safety training inspection programs identify environment for employees and reduce operational risk and…
How Does ARC Fit In 2018 Publicly Disclosed Canadian Production (1)(2) 1,200,000 Average Daily Production (boe/day) 900,000 600,000 300,000 0 Conventional Oil Sands Offshore (1) Source: CanOils; company…
ARC Overview BC AB Attachie West Dawson Phase I Phase IV Sunrise Dawson Phase II Phase I & II Upgrade 3rd largest Montney landowner Ante Creek Expansion ARC Is in Its 23rd Year of Delivering on Its Disciplined,…
ARCs Facility Expertise Has Modernized ARC Aligned with 100% ARC Advance Designed for Long-term Owned-and- Multiple Projects Optionality Development operated Simultaneously 1 2 3 4 5 Dawson Phase I Dawson Phase II Ante Creek…
ARCs Sustainable Montney Businesses Montney Businesses 705 MMcf/day of natural gas capacity 10 47.5 3A Mbbl/day of 9 liquids capacity 8 Attachie West Ante Creek 1/2A Phase I Expansion Dawson Dawson 7 Phase I & II Phase…
Why Did We Modernize ARC Sustaining Capital Three-year Average Requirements (1) 2P F&D Costs (2) Banded Commodity Prices 27% 56% 2009 2019F 2009 2018 Efficiencies & Profitability Net Well Count Operating Expense 57% 46%…
Natural Gas Outlook Western Canadian Sedimentary Natural Gas Production (1) NYMEX Henry Hub Natural Gas Pricing (3) (Bcf/day) (US/MMBtu) 20 16 18 2015 2016 16 2017 14 2018 12 2019 12 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov…
Natural Gas Outlook US LNG Exports (1) US Exports to Mexico (1) (Bcf/day) (Bcf/day) 6.0 6.0 4.5 4.5 2015 2017 2016 3.0 3.0 2018 2017 2019 2018 2019 1.5 1.5 0.0 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec…
Crude Oil Outlook Global Supply/Demand Balance WTI Crude Oil Pricing (MMbbl/day) (1) (US/bbl) (2) 110 4.5 160 100 3.0 120 90 1.5 80 80 0.0 40 70 (1.5) 0 Supply-Demand (RHS) Global Supply (LHS) Global Demand (LHS)…
Crude Oil Outlook US Oil Production (1) US Oil Exports (1) (MMbbl/day) (MMbbl/day) 16 4.5 16 US Oil Production (LHS) YoY Growth (RHS) 15% 12 3.0 12 CAGR 8 1.5 8 4 0.0 4 90% CAGR 0 (1.5) 0 2014 2015 2016 2017…
Competing Globally ARC vs. the Appalachia and Permian Plays (1) 2019E US Corporate Decline Rate vs. Capital Efficiency (2) 50% 25,000 40% 20,000 2019E Capital Efficiency (/boe/day) 2019E Corporate Decline Rate (%) ARC…
Globalization of North American Natural Gas Supply Western Canada & US Egress and Demand Outlook (1) Primary Energy Consumption Outlook (2) 50% Oil 40% LNG Canada Intra-Alberta Coal Phase 1 Demand 30% +1.9 Bcf/day +1.0…
Operating Netback Margins and Business Scale 2018 Operating Netback (1) 240 180 Operating Netback ( millions) Parkland/Tower 120 Dawson Ante Creek Pembina 60 Attachie West 0 45% 50% 55% 60% 65% Operating…
Cash Flow Growth and Enduring Profitability ARCs Funds from Operations ARCs Return on Average Capital Employed (1) 1,000 2.40 30% 10% ROACE since Inception Funds from Operations per Share (/share) Funds from Operations (…
ARC Has Balanced Cash Inflows and Outflows Cash Inflows and Outflows (1) 1,000 Pre-Hedging Funds from Operations Hedging Dividends Sustaining Capital Discretionary Funds from Operations 750 millions 500 250 0 2016…
Long-term Total Return to Shareholders Funds from Funds from Total Dividend Yield Operations per Operations per Shareholder Share Growth Share Multiple Return Protect dividend Grow production Execute efficiently Preserve balance…
ARCs Future Development Plans Will Create Value Pay monthly dividend of 0.05 per share Manage annual sustaining capital requirements and corporate decline rate Maintain large-scale resource with strategic optionality to…
ARCs Montney Land Base Geographic Egress Commodity Multi-layer Optionality Optionality Optionality Optionality Pembina Attachie Tower Parkland Dawson TCPL Sunrise TCPL Coastal Gas Link ARCs focus for 2019 is to…
Large Inventory of Development Opportunities Montney Drilling Inventory 1,000 Number of Drilling Locations 750 500 250 0 Dawson Parkland/Tower Sunrise/Sunset Attachie Ante Creek Other Montney Development…
ARCs 2019 Budget of 775 Million BC AB Red Creek Attachie Sunrise Attachie Tower 184MM 11 wells Septimus Pouce Coupe 24MM Parkland 3,000 boe/day Sunset Dawson 34,000 boe/day Sunrise Initial 60 MMcf/day at Phase II Attachie West…
Investing in World-class Reservoir at Attachie Pembina Attachie West Phase I 4-20 60 MMcf/day & Battery 14 Mbbl/day (3.5 Mbbl/day) North Montney Mainline Attachie area includes 8.9 Bbbl liquids and 32 Tcf gas in place 2021…
ARCs Commitment to Doing What Is Right ESG Ratings by Major Oil Producing Country (1) Oil and Gas Companies Relative ESG Ratings (1) ARC (1) Source: BMO Capital Markets; Yale Environmental Performance Index (EPI); Social…
The World Needs Canadian Energy Expected Growth in the Global Energy Mix (1) 5,000 4,000 Million Tonnes of Oil Equivalent 3,000 2,000 1,000 0 (1) Source: CAPP; International Energy Agency 2018 World Energy…
Global Natural Gas Production Top 10 Largest Natural Gas Producing Countries (1) Trillion Cubic Trillion FeetFeet Cubic perper Year Year 0 0 5 5 10 10 15 15 20 20 25 25 30 30 United States US Russian RussianFederation…
Global Crude Oil Production Top 10 Largest Crude Oil Producing Countries (1)(2) United States Saudi Arabia Russia Iran Iraq Canada United Arab Emirates China Kuwait Mexico 0 2 4 6 8 10 12 14 Million Barrels per Day…
Canadian Energy Drives Investment and Revenues 2018 Capital Investment by Industry (1) Annual Revenues by Industry (2) ( billions) ( billions) Upstream Upstream 90 Capital Investment by Industry (2018) 120 80 Oil Oil & Gas &…
Canadas Current Trade Deficit Canadian Net Trade by Major Product Category from Q4 2017 to Q3 2018 (1) (Cdn billions) 0 (50) (100) (150) (200) Consumer Electronic Indus. Autos Travel Other Transport Energy Metals,…
Economic Impacts of Canadian Energy (1) Source: CAPP; Statistics Canada; Prism Economics. Canadian Energy Benefits All Canadians
A Moral Case for Canadian Energy India and China 611 coal-fired plants announced or currently under construction Vietnam and Indonesia 58 coal-fired plants currently under construction 142 plants are in the pre-construction…
Canadian Energy Can Improve Global Emissions Carbon Intensity of LNG (1) Average LNG Shipping Distances (1) Round Trip 25 Days 8,480 km Round Trip 55 Days For every LNG facility built in Canada, 18,613 km global emissions…
Canadian LNG Can Help Reduce Global Emissions Canadas Greenhouse Gas and Air Pollutant Emissions Projections (1) (1) Source: CAPP Enabling Canadas Liquefied Natural Gas Industry: Global Emissions Reduction Benefits (March 2019).…
Strong Community Partnerships Select ARC Community Partnerships: Grande Prairie ARC Supports the Creation of Strong Communities through Investment and Volunteerism
Recognitions and Rankings Jantzi Social Index CDP Participant 30% Club 2018 Best IR in Energy Sector 2019 Grand Prix for Mid-cap TopGun Company for Transparency and Reporting 1 for Confidence in Corporate Strategy and…
Why Invest in ARC Competitive Cost Profitable Deep Project Long-term Structure Investment Inventory Value Creation Top-tier Assets Balance Sheet Strength Growth for Future Stage Per Share Growth Owned Infrastructure Full-cycle…
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