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July 2021 Investor Presentation – Arc Resources Ltd.

Arc Resources Ltd. · Jul 29, 2021 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. July 2021 Investor Presentation – Arc Resources Ltd. – slide 1
    ARC Resources Ltd. Investor Presentation July 2021
  2. July 2021 Investor Presentation – Arc Resources Ltd. – slide 2
    ARC Is the Largest Pure-play Montney Producer Shares outstanding 725 million Market capitalization1 7.7 billion Net debt2 2.4 billion Enterprise value1 2 10.1 billion Quarterly dividend 0.06/share Dividend yield3 2.3%…
  3. July 2021 Investor Presentation – Arc Resources Ltd. – slide 3
    ARCs Guiding Principles Sustainable business Risk management around all aspects of the Superior capital discipline model with best-in-class business including focused on maximizing free people and assets along with maintaining a…
  4. July 2021 Investor Presentation – Arc Resources Ltd. – slide 4
    ARC Is a Premier Business Strong balance sheet Net debt1 is forecasted to be 1.5 billion or less than one times funds from operations by Q3 20212 Substantial free funds flow3 Free funds flow3 is forecasted to be 1.0 billion and…
  5. July 2021 Investor Presentation – Arc Resources Ltd. – slide 5
    2021 Outlook
  6. July 2021 Investor Presentation – Arc Resources Ltd. – slide 6
    2021 Plan Executing on ARCs Disciplined Strategy Fully integrate Seven Generations Integrate people, assets, and processes while focusing on realizing immediate cost savings and synergies Enhance current investment-grade financial…
  7. July 2021 Investor Presentation – Arc Resources Ltd. – slide 7
    1 Delivering on Free Funds Flow Priorities US55/bbl WTI Free funds flow1: Cdn2.50/GJ AECO Current dividend Attachie West Phase I US45/bbl WTI Sustainable dividend Cdn2.25/GJ AECO increases Share repurchases Strategic M&A…
  8. July 2021 Investor Presentation – Arc Resources Ltd. – slide 8
    Q1 2021 in Review Production Capital expenditures boe/day millions ARC 170,430 ARC 125.7 Seven Generations 180,774 Seven Generations 148.3 Combined pro forma1 351,204 Combined pro forma1 274.0 Funds from operations Free funds…
  9. July 2021 Investor Presentation – Arc Resources Ltd. – slide 9
    Enhancing Current Investment-grade Financial Position Long-term notes repayment schedule1 2021F net debt2 sensitivities Cdn millions billions, ratio 600 2,400 2.0 450 3.72% US Note 8.21% US Note 1,800 1.5 5.36% US Note 300 3.31%…
  10. July 2021 Investor Presentation – Arc Resources Ltd. – slide 10
    160 Million in Annual Synergies from 7G Acquisition Synergies expected by 2022 160 million 180 Synergies 25 million 150 25 million 15 million 120 50 million1 90 60 45 million Realized Cost Savings: +…
  11. July 2021 Investor Presentation – Arc Resources Ltd. – slide 11
    Evaluating Strategic M&A Opportunities Assets must be as good or better than ARCs existing assets Infrastructure must be largely owned and operated Assets must have similar ESG characteristics and performance Assets must be…
  12. July 2021 Investor Presentation – Arc Resources Ltd. – slide 12
    Industry-leading Financial Performance amongst Peers Comparative cash returns1 2 2021E return on average capital employed3 4 24% Canadian E&Ps 16% Canadian E&Ps US E&Ps US E&Ps 18% 12% 12% 8% 6% 4% 0% 0% ARC ARC Average…
  13. July 2021 Investor Presentation – Arc Resources Ltd. – slide 13
    Guidance Production Q1 2021 Q2 to Q4 2021 2021 Actuals Guidance1 2 Guidance1 2 Production Crude oil (bbl/day) 13,647 12,000 - 13,500 12,000 - 13,500 Condensate (bbl/day) 13,812 69,000 - 75,000 55,000 - 60,000 Crude oil and…
  14. July 2021 Investor Presentation – Arc Resources Ltd. – slide 14
    Guidance Expenses and Capital Expenditures 2021 Guidance1 2 Expenses (/boe) Operating 4.10 - 4.60 Transportation 4.50 - 5.00 G&A expense before share-based compensation expense3 0.90 - 1.00 G&A - share-based compensation expense4…
  15. July 2021 Investor Presentation – Arc Resources Ltd. – slide 15
    Guidance Capital Program of 950 Million to 1.0 Billion Attachie 5MM 3,500 boe/day Complete detailed engineering work for Attachie West Phase I Ante Creek 60MM 16 wells 17,000 boe/day Deliver profitable light oil Greater Dawson…
  16. July 2021 Investor Presentation – Arc Resources Ltd. – slide 16
    Asset Overview
  17. July 2021 Investor Presentation – Arc Resources Ltd. – slide 17
    Greater Dawson Overview Snapshot Overview Low break-evens2 Production1 Dawson & Parkland 100 Mboe/day (21% liquids) 0.26/Mcf to 0.39/Mcf Land position Tower 149,800 net acres (97% W.I.) Phase I & II Gas Plants Phase III & IV…
  18. July 2021 Investor Presentation – Arc Resources Ltd. – slide 18
    Sunrise Overview Snapshot Overview Low cost structure Production1 Operating expense 280 MMcf/day 0.20/Mcf Optimally positioned for Finding and development cost LNG supply 0.35/Mcf Phase I & II Gas Plants Efficient resource…
  19. July 2021 Investor Presentation – Arc Resources Ltd. – slide 19
    Kakwa Overview Snapshot Gold Creek Gas Plant Overview Near-term objective Production1 Integrate asset into portfolio and Cutbank Gas Plant 181 Mboe/day (56% liquids) focus on realizing immediate Land position operations,…
  20. July 2021 Investor Presentation – Arc Resources Ltd. – slide 20
    Ante Creek Overview Snapshot Overview Stable cash flows 2-26 Production1 Balanced commodity mix and Gas Plant 17 Mboe/day (50% liquids) moderate decline rates Land position Break-even2 125,500 net acres (100% W.I.) US20/bbl 10-7…
  21. July 2021 Investor Presentation – Arc Resources Ltd. – slide 21
    Attachie Overview Snapshot Overview Significant resource Pilot production1 Resource in place2 4.5 Mboe/day (57% liquids) 8.9 Bbbl of liquids 32 Tcf of gas Phase I Gas Plant 4-20 Development Delineation Battery potential…
  22. July 2021 Investor Presentation – Arc Resources Ltd. – slide 22
    Attachie West Phase I Design Total Condensate and Natural Gas Forecasted Capital Processing NGLs Processing Processing Investment Capacity Capacity Capacity (2022 to 2023) 40 Mboe/day 25 Mbbl/day 90 MMcf/day 600 million…
  23. July 2021 Investor Presentation – Arc Resources Ltd. – slide 23
    Attachie West Phase I Cash Flow Profile 500,000,000 45, 000 40, 000 400,000,000 35, 000 30, 000 300,000,000 25, 000 20, 000 200,000,000 15, 000 10, 000 100,000,000 5,0 00 0 0 -5,000…
  24. July 2021 Investor Presentation – Arc Resources Ltd. – slide 24
    Network of Owned-and-operated Infrastructure Combined network of owned-and-operated infrastructure + Natural gas processing and sales capacity of 1.5 Bcf/day + Ability to optimize larger portfolio, which has access to downstream…
  25. July 2021 Investor Presentation – Arc Resources Ltd. – slide 25
    ARCs ESG Excellence Global oil and gas companies relative ESG rankings1 2 64 ARC Social and Governance Score 58 Africa Asia Canada 52 Europe Latin America Middle East Russia 46 United States 40 38 46 54 62 70…
  26. July 2021 Investor Presentation – Arc Resources Ltd. – slide 26
    Strong Performance across Key ESG Factors Environmental Social Governance 1 1 Emissions performance Safety Executive compensation + Lowest GHG emissions intensity + Number one corporate priority + 97% shareholder approval of ARCs…
  27. July 2021 Investor Presentation – Arc Resources Ltd. – slide 27
    ARCs Resource and Scalability Potential Drilling locations by area1 2 Resource potential 2,000 1,500 1,000 500 0 Attachie Greater Kakwa Sundown Ante Sunrise Septimus 2020 Dawson Creek Base Production Future…
  28. July 2021 Investor Presentation – Arc Resources Ltd. – slide 28
    Additional Information
  29. July 2021 Investor Presentation – Arc Resources Ltd. – slide 29
    Natural Gas Financial and Physical Price Management WCSB demand and export capacity growth1 Natural gas realizations2 3 and diversification4 5 5.00 4.39 4.00 1.41 5.4 Bcf/day Demand & Export Capacity 2.82 Cdn/Mcf 3.00 Realized…
  30. July 2021 Investor Presentation – Arc Resources Ltd. – slide 30
    Canadian Condensate Market Crude oil and condensate pricing1 WCSB condensate supply and demand2 3 US/bbl Mbbl/day 80 800 60 600 40 400 20 200 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021F 2022F 2023F 2024F WTI…
  31. July 2021 Investor Presentation – Arc Resources Ltd. – slide 31
    Significant Cash Flow Protection Crude oil and condensate production hedged1 Natural gas production hedged1 Mbbl/day, % MMBtu/day, % 48 60% 720,000 60% 36 45% 540,000 45% 24 30% 360,000 30% 12 15% 180,000 15% 0 0% 0 0%…
  32. July 2021 Investor Presentation – Arc Resources Ltd. – slide 32
    1 Risk Management Contracts Positions at March 31, 2021 Q2 2021 to Q4 2021 2022 2023 2024 2025 Crude Oil WTI US/bbl bbl/day US/bbl bbl/day US/bbl bbl/day US/bbl bbl/day US/bbl bbl/day Ceiling 56.65 12,113 56.17 11,000 - - - - - - Floor…
  33. July 2021 Investor Presentation – Arc Resources Ltd. – slide 33
    Asset Details Greater Dawson Sunrise Kakwa Ante Creek Attachie Net production Q1 2021 Crude oil & liquids (bbl/day) 20,885 41 101,300 8,534 2,619 Natural gas (MMcf/day) 469 245 477 51 12 Total (boe/day) 99,003 40,913 180,774…
  34. July 2021 Investor Presentation – Arc Resources Ltd. – slide 34
    1 Historical Performance Production Net debt2 to FFO Dividends3 Mboe/day billions, ratio billions, % of FFO 180 1.6 2.5 8 120% 2.0 135 1.2 6 90% 1.5 90 0.8 4 60% 1.0 45 0.4 2 30% 0.5 0 0.0 0.0 0 0% 2021 YTD…
  35. July 2021 Investor Presentation – Arc Resources Ltd. – slide 35
    ESG Recognitions and Rankings Member of MSCI Global Sustainability Index MSCI ESG Rating: AAA Member of FTSE Russells FTSE4Good Index Series since 2018 Voluntary participant since 2007 Member of the 30% Club since 2018 2020 Climate…
  36. July 2021 Investor Presentation – Arc Resources Ltd. – slide 36
    Advisory Statements
  37. July 2021 Investor Presentation – Arc Resources Ltd. – slide 37
    Advisory Statements Combined Pro Forma Reconciliations This presentation includes certain financial and operational results of Seven Generations for the three months ended March 31, 2021, which are derived from the unaudited condensed…
  38. July 2021 Investor Presentation – Arc Resources Ltd. – slide 38
    Investor Relations Contacts Kris Bibby General Investor Relations Enquiries Senior Vice President and Chief Financial Officer 403.503.8600 403.503.8675 1.888.272.4900 KBibbyarcresources.com IRarcresources.com Martha Wilmot Senior…

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