Creating energy for the world Investor Presentation May 2020
Advisory Statements Forward-looking Information and Statements and Advisory Statements This presentation contains forward-looking information as to ARCs internal projections, expectations, or beliefs relating to future events or future…
Corporate Strategy FINANCIAL HIGH SUSTAINABILITY & PERFORMANCE RETURN ON PEOPLE & INVESTMENT CULTURE RISK- MANAGED VALUE CREATION HIGH-QUALITY COMMERCIAL ASSETS & ACTIVITIES & OPERATIONAL RISK EXCELLENCE MANAGEMENT…
Capital Budget and Dividend 2020 Capital Budget Reduced by 40% Dividend Reduced by 60% Business Sustainability Low cost structure and operational flexibility 0.05 per Share 500 million (Monthly) Commodity optionality and…
Capital Allocation Priorities and Principles Capital Allocation Priorities Capital Allocation Principles Manage net debt to funds from operations ratio within 1.0 to 1.5x Debt Reduction Long-term Development Pay meaningful…
ARCs Vision for the Future Production (Mboe/day) 150 to 155 139 133 123 2017 2018 2019 2020F Production Base Capital Expenditures ( millions) 830 679…
2020 Budget of up to 300 Million Attachie BC AB Tower Pouce Coupe Septimus Parkland Attachie Sunset Sunrise Dawson Sunrise 30MM 35MM 7 wells 5,000 boe/day Sundown 36,000 boe/day Optimize pad profitability Maximize natural…
Multiple Layers to Develop Attachie Septimus Sunrise Tower Parkland Dawson Pouce Coupe Montney Upper Montney A Montney B Montney C Montney Lower Montney D Montney E Existing Horizontal Wells,…
Cost Management & Decline Rate Three-year PDP FD&A Costs (/boe) (1)(2)(3) 2019 Operating Expense (/boe) (4)(5) 2020E Corporate Decline Rates (6) 32 16 48% Canadian Producers US Producers 24 12 36% Group Average Group Average…
Financial Price Management 70% of Crude Oil & Condensate Hedged for the Balance of 2020 40% of Natural Gas Hedged for the Balance of 2020 20,000 320,000 Crude Oil & Condensate Production Hedged (bbl/day) Natural Gas Production…
ARCs ESG Excellence ESG Ratings by Major Oil Producing Country (1)(2) Oil and Gas Companies Relative ESG Rankings (1) 100 500 70 Africa Asia Canada 64 Europe 75 375 Latin America Social and Governance Score Average ESG…
Water Management Strategy Water Management Strategy Water Storage Reservoirs Responsibly manage water use in operations Evaluate technologies and procedures to implement best practices Sunrise Parkland Water strategy key in…
Owned-and-operated Infrastructure NE BC Ante Creek Phase I Parkland/Tower Phase I Dawson Phase III & IV AB Dawson Phase I & II Sunrise Phase I & II Core Montney: Facility Investment of 815 million 645 MMcf/day of…
Sunrise Overview Snapshot Development Plan Operate Sunrise Phase I & II facility at or near processing capacity of 240 MMcf per day through 2020 to capitalize on strong natural gas pricing Expect areas operating expense to be less…
Lower Montney Development and Liquids Growth Greater Dawson Area Lower Montney Development 23 Tcf (1) of resources in lower Montney Large Resource in Place 105 MMbbl of contingent resource NGLs, of which 71 MMbbl is condensate…
Optimizing Dawson Lower Montney Development Estimated Ultimate Recovery Capital Efficiency 1,500 10,000 Estimated Ultimate Capital Efficiency Recovery (Mboe) 1,125 7,500 (/boe/day) 750 5,000 375 2,500 0 0 2017…
Ante Creek Overview Snapshot Development Plan Completed Ante Creek facility expansion which was brought on-stream in Q2 2020 Preserve light oil production until prices recover 2020 Development Focus Capital Budget Planned Wells…
Continuous Improvement in Pad and Well Design Pad and Well Design Evolution Cumulative Condensate Production 300 2016 13-26 Well Unconstrained Cumulative Condensate Production (Mbbl) 225 2017 B13-26 Well Unconstrained 300…
Pembina Overview Snapshot Development Plan Preserve light oil production until prices recover 2020 Development Focus Capital Budget Planned Wells Expected Production 8 million 0 wells 10 Mboe/day (3%) (0%)…
Transformation of ARCs Business Production Net Debt to Funds from Operations Dividends (1) 160,000 1,600 2.50 8 120% Dividends as a % of Funds from Operations 120,000 2.00 Cumulative Dividends ( billions) 1,200 6 90%…
Key Reserve Information (1) Proved Producing 258 MMboe YE 2019 2P Reserves Total Proved 595 MMboe Proved plus Probable 910 MMboe Crude and Tight Oil 83 MMbbl PDP Probable NGLs 134 MMbbl 35% 28% Natural Gas 4.2 Tcf PNP 2% 2P…
Definitions of Reserves and Resources Undiscovered Petroleum Initially-in-Place (UPIIP) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of…
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