ARC Resources Ltd. Investor Presentation December 2021
ARC Is the Largest Pure-play Montney Producer Shares outstanding 699 million Market capitalization1 7.9 billion Net debt2 1.9 billion Enterprise value1 2 9.8 billion Quarterly dividend3 0.10/share Dividend yield4 3.6%…
ARCs Long-term Strategy Scale in Capital World-class Assets Discipline Profitable Returns Operational Balance Sheet Excellence with Low Strength Costs & Emissions ARCs focus is on long-term profitability and shareholder…
Why Invest in ARC Profitable Assets Multi-decade inventory of world-class assets supported by company-owned infrastructure Financial Strength Investment-grade credit rating and track record of low debt since inception…
Industry-leading Financial Performance amongst Peers Comparative cash returns for 2022 and 20231 2 24% 18% 12% 6% 0% Appalachia ARC US Large Cap Canada Permian XEG S&P/TSX Dividend Yield (Current) Average Free Cash…
Capital Allocation Priorities Returning 50% to 80% of free funds flow1 Return of capital measures Sustainable Dividend Growth US75/bbl WTI & Dividend is the core return mechanism Cdn3.90/GJ AECO Designed to grow with profits and…
2022 Plan
Capital Program of 1.2 Billion to 1.3 Billion 2022 capital program 45 million 1.2 to 1.3 billion 75 million 115 million 1.1 billion Capital to Sustain Production Sunrise Expansion Attachie West Phase I Emissions-reduction…
Integration of Seven Generations Complete Kakwa drilling and completions costs Synergies from Seven Generations acquisition millions per well millions 7.0 160 million 160 million 6.5 12% 110 million Reduction 6.0 5.5…
2022 Guidance Capital Expenditures & Production Attachie 75MM 2,500 boe/day Ante Creek 70MM 17 wells Greater Dawson 19,000 boe/day 230MM - 250MM 37 wells 96,000 boe/day Kakwa 600MM - 700MM 67 wells Sunrise 180,000 boe/day…
2022 Guidance Production & Expenses 2022 Guidance Production Crude oil (bbl/day) 7,000 - 9,000 Condensate (bbl/day) 72,000 - 78,000 Crude oil and condensate (bbl/day) 79,000 - 87,000 Natural gas (MMcf/day) 1,240 - 1,280 NGLs…
Strong Financial Position 2022 forecasted net debt sensitivities1 2 Long-term notes repayment schedule billions, ratio Cdn millions 2.0 2.0 600 1.5 1.5 450 1.0 1.0 300 0.5 0.5 150 0.0 0.0 0 US40/bbl WTI & US55/bbl WTI &…
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…
ARCs Leading Emissions Profile Emissions-reduction targets Comparative 2020 GHG emissions intensity2 3 relative to 2019 baseline1 tCO2e/boe Reduce Scope 1 & 2 emissions intensity by 20% by 2025 0.08 0.06 Reduce absolute…
Asset Overview
ARCs Resource and Scalability Potential Depth of inventory1 2 number of drilling locations 2,000 1,500 1,000 500 0 Attachie Greater Dawson Kakwa Sundown Ante Creek Sunrise Septimus (1) Comprises 2P booked…
Greater Dawson Overview Snapshot Land position1 Production2 149,800 net acres 96 Mboe/day 97% W.I. 20% crude oil and liquids Tower Phase I & II Gas Plants Phase III & IV Parkland Gas Plants 2022 objective Phase I & II…
Sunrise Overview Snapshot Land position1 Production2 23,100 net acres 286 MMcf/day 93% W.I. 100% natural gas Phase I & II Gas Plants 2022 objective Expand Sunrise Phase I & II by 80 MMcf/day to grow low-cost, low-emission…
Kakwa Overview Snapshot Gold Creek Land position1 Production2 Gas Plant Cutbank 488,000 net acres 186 Mboe/day Gas Plant 99% W.I. 57% crude oil and liquids Karr Facility Lator 2022 objective Pembina Gas Plant Kakwa…
Ante Creek Overview Snapshot Land position1 Production2 2-26 122,000 net acres 19 Mboe/day Gas Plant 100% W.I. 46% crude oil and liquids 10-7 Gas Plant 2022 objective 10-36 Gas Plant Leverage 2020 facility expansion to…
Attachie Overview Snapshot Land position1 Pilot production2 202,500 net acres 4 Mboe/day 100% W.I. 54% crude oil and liquids Phase I 4-20 Gas Plant 2022 objective Battery Invest in long-lead items to advance Attachie West…
Attachie West Phase I Project overview Forecasted cash flow profile Processing capacity 600,000,000 60,000.000 Total 40 Mboe/day 400,000,000 40,000.000 Condensate and NGLs 25 Mbbl/day Natural gas 90 MMcf/day 200,000,000…
Appendix
Cash Flow Protection Crude oil and condensate production hedged1 Natural gas production hedged1 Mbbl/day, % MMBtu/day, % 48 60% 600,000 60% 36 45% 450,000 45% 24 30% 300,000 30% 12 15% 150,000 15% 0 0% 0 0% Q4 2021 2022…
Historical Performance Production Net debt1 to FFO Dividends2 Mboe/day billions, ratio billions, % of FFO 360 2.5 2.5 8 120% 2.0 2.0 270 6 90% 1.5 1.5 180 4 60% 1.0 1.0 90 2 30% 0.5 0.5 0 0.0 0.0 0 0% 2021 YTD…
12 ESG Recognitions and Rankings Member of MSCI Global Sustainability Index Member of Sustainalytics Jantzi Social Index MSCI ESG Rating: AAA Voluntary participant since 2007 2020 Climate Change Score: A- Member of FTSE…
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