Corporate Profile ARC Is a Canadian Oil and Gas Producer in Its 23rd Year of Delivering on Its Disciplined, Returns-focused Value Proposition Corporate Summary Production (Q1 2019) 139,054 boe/day Reserves (2P Gross – YE 2018) (1) 879…
2019 Guidance 2019 Capital Program Focused on Investing in Multi-year Development Projects to Grow Liquids Production 2019 Guidance 2019 YTD Actuals Production Crude oil (bbl/day) 18,000 - 22,000 18,251 Condensate (bbl/day) 7,500 -…
Long-term Shareholder Value Since 2014, ARC Has Created Value for Its Shareholders across All Aspects of the Business Dividends • >$1 billion in dividends • Current yield of 6% • Fully funded Production • Increased production by…
ARC Has Delivered on Its Commitments ARC’s Plan Remains Focused on Profitability, Sustainability, and Creating Optionality for the Long Term 2017 Monthly dividend of $0.05 per share Divested Saskatchewan assets Eliminated DRIP and…
h 2020 2021 Maintain Share Count Bring on Dawson Phase IV in Q2 Bring on Ante Creek expansion in Q2 Progress Attachie West Phase I Bring on Attachie West Phase I 3 Years Dividend • Average $210 million Growth capital (1) •…
Building Sustainable Businesses in the Montney ARC Is Generating Strong Cash Flows and Is Sustaining Production at Low Reinvestment Rates 2009 Non-core Dispositions 2010 2011 2012 2013 2015 2015 2017 2018 2019 Q4 2019 Q2 2020 Q2 2020…
ARC’s Focus Has Improved – The Results Are Clear Disciplined Execution in Building Sustainable Montney Businesses Has Created a More Efficient Business Disciplined Capital Allocation Physical Market Access and Financial Risk…
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, targeting decline…
ARC’s current funding model includes the reinvestment of proceeds from 2016 and 2018 non-core dispositions, allowing ARC to fund infrastructure and profitably grow the business • Once the productive capacity at Dawson Phase IV is…
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 Red Creek Attachie Septimus Tower Parkland Sunset Sunrise Sundown…
Three-year Infrastructure Investment Plan Processing Capacity 2017 2018 2019 2020 2021 2022 Oil and Condensate (bbl/day) NGLs (bbl/day) Natural Gas (MMcf/day) Total (boe/day) Parkland-Dawson Interconnect Sunrise Phase II 1…
Physical Marketing Activities Crude Oil & Liquids ARC Natural Gas Diversification (5)(6) Hedged Midwest US Floating Dawn Floating AECO Floating Station 2 Floating Henry Hub Floating Malin Floating ARC’s Crude Oil & Liquids Crude…
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 agreements to support existing production and…
Red Creek Attachie Septimus Tower Parkland Sunset Sunrise Sundown Dawson Pouce Coupe Ante Creek 1,000m 2,000m 3,000m 1,000m 2,000m Montney Erosional Edge Lower Montney 10 kPa/m Line Condensate-rich Gas BC AB (1)…
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…
Dawson Phase I & II Sunrise Phase I Attachie East Parkland/Tower Phase I & II Net Cash Flow + Sundown Attachie West (Pilot) Pembina Growth for Future Phase • Exploration • Appraisal / Piloting Development Phase • Develop to…
CUMULATIVE PRODUCTION TOTAL PROVED + PROBABLE RESERVES DEVELOPMENT UNCLARIFIED RISKED DEVELOPMENT PENDING RISKED Montney Reserves and Risked Resources (1) Extensive Development Potential from Montney Assets with TPIIP of 14.3…
Large Inventory of Development Opportunities (1) • Pembina area has ~600 future drilling opportunities in the Cardium based on ARC’s internal evaluation GLJ Has Recognized over 3,500 Future Drilling Locations across ARC’s Montney…
Montney Development Economics Strong Rates of Return across the Montney Portfolio (1) IRR (half-cycle after-tax rate of return) run at US$60/bbl WTI and Cdn$2.00/GJ AECO flat pricing. (2) Breakeven prices are US$ per barrel WTI or Cdn$…
Greater Dawson Area – Lower Montney Production Lower Montney CGRs Range from 10 to 225 bbl/MMcf (1) Strong Liquids Results to Produce into Integrated Infrastructure of Greater Dawson Area Parkland F11-4 (12 month cum) • 124 Mbbl…
(1) Three-year 2P FD&A Costs (2016 - 2018) includes future development capital. Source: Peters & Co. 2018 Reserves Comparison – E&P Producers (March 29, 2019). (2) Refer to ARC’s February 7, 2019 news release entitled, “ARC Resources…
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 Efficiencies of full-stack development include: •…
Strong Safety Performance • ARC’s strong safety performance and capital efficiencies are the result of well-planned and executed operations • Improvements in safety performance are the result of ARC employees being focused on safety and…
Environmental, Social & Governance Performance reduced by 43 per cent since 2007 • Targeting to further reduce GHG emission intensity by 25 per cent by 2021 • Strong safety culture demonstrates ARC’s commitment to creating an…
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…
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 Field Netback (1) Capital Expenditures Facility Expenditures…
Attachie – Regulatory Approval Obtained for Phase I 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 Asset Details Net Production (boe/day) – Q1 2019 3,272 Liquids (bbl/day) 1,795 Gas (MMcf/day) 8.9 Land (Montney Net Sections) 308 Working Interest ~99% 2P Reserves (MMboe) 31 Liquids (MMbbl) 14.8…
Dawson – Asset Details Focus Is on Lower Montney Liquids with Infrastructure Enhancements at Dawson Phase I & II and Dawson Phase IV (1) Reserve Life Index based on 2019 guided production. ARC 13-7 Phase III Gas Plant (90 MMcf/day &…
Dawson – Development Potential Liquids-rich Development Layer Below Core Acreage Lower Montney Booked Reserves Upper Montney A Booked Reserves Lower Montney Upper Montney Existing Horizontal Wells, Development Potential…
Parkland/Tower – Asset Details Greater Focus on Lower Montney Development; Profitable with Commodity Optionality Year 2017 2018 2019 Budget Parkland # Hz Wells Drilled 6 8 5 Tower # Hz Wells Drilled 29 15 8 ARC Gas Plants ARC…
Parkland/Tower – Development Potential Incremental Reserves Potential With Multi-layer Development Upper Montney A Booked Reserves Upper Montney A+ Booked Reserves Lower Montney Booked Reserves Lower Montney Upper Montney…
Sunrise/Sunset – Asset Details Sunrise Phase II: First 60 MMcf per Day of Processing Capacity in Use, Balance Expected to Be in Service in June 2019 (1) The first 60 MMcf/day of gas processing capacity is in use, and the remaining 120…
Ante Creek – Asset Details Strong Cash Flow Generating Asset with Facility Expansion Project Planned for Q2 2020 Net Production (boe/day) – Q1 2019 14,817 Liquids (bbl/day) 6,996 Gas (MMcf/day) 46.9 Production Split % (Liquids / Gas)…
Ante Creek – Development Potential Large Land Base Presents Significant Drilling Inventory ARC Montney Lands with 2P Reserves Booked as of YE 2018 ARC Montney Lands Drilling Inventory 0 200 400 600 800 Wells Drilled to YE 2018…
Pembina – Asset Details High Working Interest Light Oil Production, Competitive Operating Netback and Strong Cash Flow Generation Net Production (boe/day) – Q1 2019 10,550 Liquids (bbl/day) 8,703 Gas (MMcf/day) 11.1 Land (Cardium Net…
ARC’s History and Future In the past 23 years, ARC has successfully achieved the following: Strong Foundation for Continued Success $6.4 Billion of Distributions / Dividends & 9% Annualized Total Return (2) Stayed within Target…
Consistent and Sustainable Strategy Delivering on Our Strategy of Risk-managed Value Creation Montney Growth Assets RISKMANAGED VALUE CREATION High-quality, Long-life Assets Financial Flexibility and Market Access HSE and…
Transformation of Our Business Montney Transformation Has Allowed ARC to Manage a Profitable Business through Commodity Price Cycles 2019 YTD Payout Ratio of 29% Return on Average Capital Employed (1) Cumulative Dividends and…
Record Produced Reserves Replacement in 2018 • Strong 2018 development 2P reserve adds, with 245 per cent of produced reserves replaced • Montney assets have been the centrepiece of ARC’s strategy of organic reserves and resource…
Key Reserve Information • Proved Producing 244 MMboe • Total Proved 551 MMboe • Proved plus Probable 879 MMboe • Crude and Tight Oil 98 MMbbl • NGLs 107 MMbbl • Natural Gas 4.0 Tcf • 2P Reserve Life Index (1) 17.4 years Year-end…
Risk Management Program • The fair value of ARC’s risk management contracts at March 31, 2019 was a net asset of $119.7 million Program Executed with a Long-term View (1) 2019 Forecast values based on actuals for the three months ended…
Risk Management Contract Positions March 31, 2019 (1) The prices and volumes in this table represent averages for several contracts representing different periods. The average price for the portfolio of options listed above does not have…
Recognitions and Rankings • MSCI Global Sustainability Index • Jantzi Social Index • FTSE Russell’s FTSE4Good Index Series • CDP Participant for nine consecutive years • Joined the 30% Club in 2018 • Globe and Mail Board Games:…
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