ARC Resources Ltd. Peters & Co. 2019 Energy Conference September 10, 2019
Corporate Profile Corporate Summary Asset Snapshot 2019 YTD Production 2018 Proved + Probable Reserves BC AB ARC holds 1,100 net 7%5% Montney sections 20% 11% Attachie 5% (707,000 acres) 137 Mboe/day 879 MMboe 75% 77% Greater…
Corporate Strategy FINANCIAL HEALTH, SAFETY, FLEXIBILITY & ENVIRONMENT & CAPITAL OPERATIONAL ALLOCATION EXCELLENCE RISK- MANAGED VALUE CREATION HIGH-QUALITY, TOP TALENT & LONG-LIFE ASSETS, STRONG MARKET ACCESS &…
Long-term Corporate Profitability Return on Average Capital Employed (1) Delivering Full-cycle Asset Level Returns 30% 20% After-tax Rate of Return 10% Proportional Facility and 0% Appropriate Timing Included:…
Capital Allocation Priorities 2019 Forecasted Capital Allocation 2020 Forecasted Capital Allocation Long-term Development Long-term Investments Development 300 million Investments 150 to 225 million 2019 Budget 2020 700…
2019 Budget of 700 Million BC AB Red Creek Attachie Attachie Sunrise Tower 80MM 10 wells Pouce Coupe 25MM Septimus Parkland 3,000 boe/day Sunset 34,000 boe/day Continue to pilot well designs Sunrise Dawson Successfully…
Maintaining Financial Strength Canadian Benchmarking: 2019E Year-end Net Debt / 2019E Cash Flow (1) 7.0x Group Average 3.9x 3.5x 3.2x 3.1x 2.9x 2.4x 2.3x 2.2x 2.2x 2.1x 2.0x 1.9x 1.8x 1.8x 1.7x 1.7x 1.7x…
Multiple Layers to Develop Attachie Septimus Sunrise Tower Parkland Dawson Pouce Coupe Montney A Upper Montney Montney B Montney C Montney Lower Montney D Montney E Existing Horizontal Wells, Development…
Lower Montney Production Success High free condensate-to-gas ratio (CGR) in Parkland and northwest Dawson is yielding development wells with 100 strong profitability Phase III & IV Gas Plants Strong gas deliverability within…
Top-tier Montney Economics Montney Liquids Break-evens (US/bbl) (1) Montney Natural Gas Break-evens (Cdn/Mcf) (1)(4) 3.00 2019 YTD Average Realized Natural Gas Price 60 including Gain on Risk Management Contracts: 2.78/Mcf 2019 YTD…
Cost Management & Decline Rate Three-year 2P FD&A Costs (/boe) (1)(2)(3) Q1 2019 Operating Expense (/boe) (5)(6) Corporate Decline Rates (7) 24 16 40% 18 12 30% Group Average 12 Group Average 8 20% ARC NE BC Oil & Gas ARC…
Oil & Liquids Financial and Physical Price Management Crude Oil & Liquids Sales Mix Crude Oil & Liquids Benchmark Pricing Crude Oil Risk Management 79% of ARCs liquids production is made Benchmark Pricing Crude Oil Hedges (1) up of…
Natural Gas Financial and Physical Price Management ARCs Natural Gas Price (1) ARC Natural Gas Diversification (2)(3) 4.00 100% 4% 4% 6% 4% 7% 3.47 7% 3.15 14% 2.96 3.02 0.62 13% 22% 3.00 0.36 75% % of Total Production…
Responsible Environmental Practices Reducing GHG Emissions Intensity Reducing Freshwater Needs Consistent reductions in GHG emissions intensity due to facility 55 million of water infrastructure investments in ARCs Montney and…
Strong Safety Performance Contractor Total Recordable Incident Frequency 2.0 75% Total Recordable Incident Frequency Reduction 1.5 1.0 0.5 0.0 2014 2015 2016 2017 2018 2019 YTD Strong safety performance is…
Environmental, Social, and Governance Excellence ESG Ratings by Major Oil Producing Country (1) Oil and Gas Companies Relative ESG Rankings (1) ARC (1) Source: BMO Capital Markets; Yale Environmental Performance Index (EPI);…
100% Owned-and-operated Infrastructure Multi-year Investment Plan Montney Natural Gas Processing Capacity Attachie West Montney Crude Oil & Liquids Processing Capacity Phase I Cardium Production Ante Creek Dawson Expansion Phase…
Multi-year Infrastructure Investment Plan Processing Capacity 2017 2018 2019 2020 2021 2022 Oil and Natural Projects Condensate NGLs Gas Total (bbl/day) (bbl/day) (MMcf/day) (boe/day) Sunrise Phase II 1 180 30,000 Sanctioned…
Dawson Phase IV Business Model Dawson Phase IV 35,000 Natural Gas Processing Capacity: 90 MMcf/day Condensate-handling Capacity: 7,500 bbl/day (production expected to stabilize at 3,000 bbl/day) 30,000 ,000,000 NGLs-handling…
Strategic Optionality Attachie Greater Dawson Area Dawson I & II Liquids-handling Upgrade (YE 2019) Dawson IV (Q2 2020) Dawson V Parkland/Tower III Ante Creek Ante Creek 10-36 Expansion (Q2 2020) Greater Attachie Dawson Area…
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