Corporate Profile ARC Is a Canadian Oil and Gas Producer in Its 23rd Year of Delivering on Its Disciplined, Returns-focused Value Proposition Including ~$6.5 Billion in Dividends Paid since Inception Attachie Greater Sunrise Area…
Corporate Strategy ARC’s Strategy Is Focused on Profitability, Sustainability, and Creating Optionality for the Long Term RISKMANAGED VALUE CREATION HIGH-QUALITY, LONG-LIFE ASSETS, MARKET ACCESS & PORTFOLIO MANAGEMENT FINANCIAL…
Long-term Corporate Profitability ARC Has Delivered a 10% ROACE since Inception (1) Non-GAAP measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other…
Dividend ~$210 million Sustaining Capital (1) ~$400 million 2020F Inflows 2020F Outflows Capital Allocation Priorities ARC Expects to Be Self-funding Once Dawson Phase IV Is Brought On-stream in Q2 2020 2019 Forecasted Capital…
2019 Budget of $700 Million Delivers Annual Production of 136,000 to 142,000 boe per day in 2019 While Investing in 25,500 boe per day Infrastructure at Dawson Phase IV, Planned to Come on Stream in Q2 2020 BC AB Red Creek Attachie…
Maintaining Financial Strength ARC Has One of the Strongest Balance Sheets in the Sector with a Targeted Net Debt to Annualized Funds from Operations Ratio of 1.0 to 1.5x ARC ARC 0.6x 0.6x 0.8x 1.0x 1.0x 1.1x 1.2x 1.3x 1.4x…
World-class Montney Resource GLJ Has Recognized over 3,500 Future Drilling Locations across ARC’s Montney Assets Montney Optionality Reserve & Resource Summary (1)(2) Significant Montney Inventory (3) Geographic Optionality Egress…
Multiple Layers to Develop Up to 1,000 Feet Thick, ARC’s Montney Assets Have Significant Future Delineation Opportunities Attachie Septimus Sunrise Tower Parkland Dawson Pouce Coupe Montney A Montney B Montney C Montney D…
Top-tier Montney Economics Strong Rates of Return across the Montney Portfolio Montney Liquids Break-evens (US$/bbl) (1) Montney Natural Gas Break-evens (Cdn$/Mcf) (1)(4) 2019 YTD Average Realized Condensate Price: $51.34/bbl 2019 YTD…
Cost Management & Decline Rate Low-cost Producers with a Low Decline Rate Deliver Superior Returns over Time Group Average ARC NE BC Oil & Gas ARC ARC Group Average ARC Sunrise Gas ARC Dawson (4) ARC NE BC Oil & Gas ARC Sunrise…
Oil & Liquids Financial and Physical Price Management 58% of ARC’s 2019 YTD Commodity Sales from Production Was Derived from Crude Oil and Liquids 79% of ARC’s liquids production is made up of oil and condensate 40% 39% 21% 0 20…
Natural Gas Financial and Physical Price Management Integrated Physical Marketing and Financial Risk Management Strategies Enable ARC to Effectively Execute on Its Long-term Plans Natural Gas Flows and Sales Points (2019 YTD in…
Responsible Environmental Practices • Consistent reductions in GHG emissions intensity due to facility and multi-well pad electrification projects • GHG emissions intensity reduced by 17 per cent and absolute GHG emissions reduced by…
Strong Safety Performance • Strong safety performance is the result of well-planned and executed operations and alignment with strong service providers Zero Lost-time Incidents (“LTI”) for Employees and Contractors in 2018; Over Five…
Environmental, Social, and Governance Excellence Responsible Development Is Engrained in ARC’s Long-term Strategy and Has Shaped the Company We Are Today (1) Source: BMO Capital Markets; Yale Environmental Performance Index (EPI);…
100% Owned-and-operated Infrastructure ARC Is Building Sustainable Businesses in the Montney and Is Increasing Its Liquids Processing Capacity Multi-year Investment Plan Existing Infrastructure 2018 to 2019 Q4 2019 Q2 2020 Q2 2020…
Multi-year Infrastructure Investment Plan Projects Processing Capacity 2017 2018 2019 2020 2021 2022 Oil and Condensate (bbl/day) NGLs (bbl/day) Natural Gas (MMcf/day) Total (boe/day) Sunrise Phase II 1 180 30,000 Dawson…
Dawson Phase IV Business Model Infrastructure Investment in Greater Dawson Area Is Supporting ARC’s Broad Shift to the Liquids-rich Lower Montney Dawson Phase IV (1) Non-GAAP measure that does not have any standardized meaning under…
Strategic Optionality Scalability Allows for Profitable Growth to Generate Sustainable Funds from Operations and Maintain Financial Strength 2018 Base Production (Montney & Cardium) In Progress Future Development Projects ~133…
Greater Dawson Area Overview Lower Montney Focus with Dawson Phase IV and Infrastructure Enhancements at Dawson Phase I & II Snapshot Development Plan 2019 Development Focus Infrastructure Build-out 2010 2011 2013 2015 2017 YE 2019…
Lower Montney Production Success Strong Liquids Results to Produce into Integrated Infrastructure of Greater Dawson Area Parkland Dawson Free Condensate-to-gas Ratio (bbl/MMcf) • High free condensate-to-gas ratio (“CGR”) in Parkland…
Ante Creek Overview Strong Cash Flow Generating Asset with Facility Expansion Project Planned for Q2 2020 Snapshot Ante Creek Phase I Montney Crude Oil & Liquids Processing Capacity Montney Natural Gas Processing Capacity Ante…
Attachie Overview Regulatory Approval for Construction of Phase I and Sales Line Obtained Snapshot Attachie West Phase I Capital Budget Planned Wells Expected Production $80 million (11%) $700 million (2) 10 wells (11%) 88 wells…
Sunrise Overview Successfully Repatriated 60 MMcf per Day in Q2 2019, Final 60 MMcf per Day Expected to Be in Service in H2 2019 Snapshot Sunrise Phase I Montney Natural Gas Processing Capacity Sunrise Phase II Sunrise Phase II…
Pembina Overview High Working Interest Light Oil Production, Competitive Operating Netback and Strong Cash Flow Generation Snapshot Capital Budget Planned Wells Expected Production $40 million (6%) $700 million (1) 11 wells (13%)…
2019 Guidance 2019 Capital Program Focused on Investing in Multi-year Development Projects to Grow Liquids Production 2019 Original Guidance 2019 Revised Guidance 2019 YTD Actuals Production Crude oil and condensate (bbl/day)…
Asset Details Dawson Parkland/Tower Ante Creek Attachie Sunrise Pembina Net production Crude oil & liquids (bbl/day) Natural gas (MMcf/day) Total (boe/day) 4,007 237.1 43,257 12,773 118.7 32,561 (2) 8,382 47.9 16,359 1,587…
Transformation of ARC’s Business Montney Transformation Has Allowed ARC to Manage a Profitable Business through Commodity Price Cycles Production Net Debt to Funds from Operations (1) Dividends (2) (1) 2019 YTD based on annualized…
Record Produced Reserves Replacement in 2018 • Strong 2018 development 2P reserve adds, with 245 per cent of produced reserves replaced • Finding and development costs of $5.76/boe for proved plus probable reserves and $6.02/boe for…
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…
Large-scale Montney Resource Extensive Development Potential from Montney Assets with TPIIP of 14.3 Billion Barrels of Oil and 101.8 Tcf of Shale Gas (1) Oil 17 MMbbl Condensate & NGLs 157 MMbbl 2.8 Tcf ECONOMIC CONTINGENT…
Risk Management Program Program Executed with a Long-term View; Fair Value of Risk Management Contracts Is a Net Asset of $104.5 Million (4) (1) 2019 Forecast values based on actuals for the six months ended June 30, 2019 and forecast…
Risk Management Contract Positions June 30, 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…
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