ARC Resources Ltd. Investor Presentation JULY 2022
Corporate Profile Premium investment opportunity for Montney exposure, one of the most profitable assets in North America 1 Shares outstanding 665 million 1 Canadas Market capitalization 10.8 billion largest Long-term debt 1…
Corporate Strategy Sustainable dividend-paying energy company focused on long-term profitability and shareholder returns Scale in Capital World-class Assets Discipline Profitable Returns Operational Balance Sheet Excellence…
What Differentiates ARC Asset Quality & Duration Multi-decade inventory in world-class Montney assets; Company-owned infrastructure Financial Strength Investment-grade Credit; Track record of low debt since 1996 Operational…
Capital Allocation Priorities ARC has committed to returning 50% to 80% of free funds flow to shareholders Free Funds Flow Priorities 2022 Capital Allocation billions Base Dividend 5 Pay quarterly at 0.12/share US100/bbl WTI &…
Financial Sustainability & Return on Investment
Financial Strength Maintaining a strong balance sheet is foundational to ARC 12 Net debt and net debt to funds from operations billions, ratio 2.4 2.0 1.8 1.5 1.2 1.0 0.6 0.5 0.0 0.0 Q2 2021 Q3 2021 Q4 2021 Q1 2022…
Investment-grade Capital Structure ARC maintains a simple capital structure with ample liquidity 1234 Credit capacity Long-term notes repayment schedule billions millions 600 0.6B 450 300 1.4B 150 1.0B 0 2022 2023…
Long-term Corporate Profitability Disciplined plan to deliver excellent corporate returns 1 Return on average capital employed % 1) Non-GAAP financial ratio that is not a standardized financial measure under IFRS and may not be…
Marketing & Fundamentals
Natural Gas Marketing Strategy Portfolio with well-diversified North American exposure is driving strong realizations 12 Natural gas sales exposure 9% 9% 8% 8% 8% 13% 12% 11% 11% 8% 10% 10% 11% 11% 11% 10% 23% 23% 28% 14%…
LNG Supply Agreements ARC has secured access to western Canadian and US Gulf Coast LNG as part of its market diversification strategy LNG supply agreements North American LNG export facilities LNG Canada Cheniere Corpus Participant…
Western Canadian Natural Gas Fundamentals Significant demand and export capacity growth expected over the next five years 1 23 WCSB natural gas supply and demand Natural gas pricing Bcf/day US/MMBtu, % 24 6.00 100 18 4.50 75…
Western Canadian Condensate Market Fundamentals Continued reliance on imported volumes is constructive for Canadian condensate pricing 1 2 WCSB condensate supply and demand Crude oil and condensate pricing Mbbl/day US/bbl 1,000…
Asset Portfolio Overview
ARCs Montney Assets Are World-class Largest producer in the Montney positioned at the low end of the North American cost curve Break-even cost of supply of forecasted new wells drilled for 2023 to 20251 US/MMBtu 4 3 2 1…
Deep Inventory of Top-tier Development Opportunities ARC has over 5,500 drilling locations with significant commodity and geographic optionality 1 Reserves Drilling inventory MMboe Number of locations 2,000 6,000 1,500 4,500…
Large Network of Owned-and-operated Infrastructure Drives lower cost structure and results in greater operational control and reliability Northeast BC infrastructure Parkland 03-09 90 MMcf/day Dawson Phase III & IV 180…
Large Network of Owned-and-operated Infrastructure Drives lower cost structure and results in greater operational control and reliability Northern AB infrastructure Gold Creek Plant 250 MMcf/day Ante Creek Facilities 65…
Leading Cost Structure Low-cost structure driven by large network of owned-and-operated infrastructure 12 Comparative Q4 2021 operating expense per boe /boe 16 12 8 4 0 ARC 20 1) See Non-GAAP and Other…
Mitigating Inflation through Efficiency Improvements ARC estimates net inflationary impacts to be 10% in 2022 Estimated inflationary impacts to 2022 capital program millions Total Realized Estimated Estimated Estimated Total…
Sustainable Drilling Improvements at Kakwa Continuous improvements achieved through technology, innovation, and optimization Drilling costs per metre Drilling metres per day /metre metres drilled/day 800 300 40% 600 225 36%…
Kakwa Overview Premium condensate-rich play that generates significant free funds flow Gold Creek Plant 1 2 Land position Production Cutbank Plant 235,500 net acres 175 Mboe/day 99% W.I. 56% crude oil and liquids Karr…
Greater Dawson Overview Low reinvestment rates driving significant free funds flow generation 1 2 Land position Production 150,200 net acres 98 Mboe/day 98% W.I. 21% crude oil and liquids Tower Parkland 03-09 3 Dawson…
Sunrise Overview Lowest-cost dry natural gas play in North America 1 2 Land position Production 22,700 net acres 286 MMcf/day 100% W.I. Sunrise Phase I & II 3 PDP Reserves 2022 objective 74 MMboe Prepare for facility…
Attachie Overview Attachie West Phase I is the leading development opportunity within ARCs portfolio 1 2 Land position Production 203,200 net acres 3 Mboe/day 100% W.I. 53% crude oil and liquids Attachie West 3 Phase I PDP…
Attachie West Phase I Attachie West Phase I is the leading development opportunity within ARCs portfolio Project overview Forecasted cash flow profile 600,000,000 60,000.000 Processing capacity Total 40 Mboe/day 400,000,000…
Ante Creek Overview Highly profitable, stable light oil development 1 2 Land position Production 118,400 net acres 18 Mboe/day Ante Creek 100% W.I. 47% crude oil and liquids 02-26 Ante Creek 10-07 3 PDP Reserves 2022…
ESG Strategy & Performance
ARCs ESG Excellence ARC scores amongst the best in the world for ESG performance 12 Global oil and gas companies relative ESG rankings 64 ARC Africa Social and Governance Score 58 Asia Canada Europe 52 Latin America…
Leading Emissions Profile ARC has one of the lowest emissions profiles amongst Canadian E&P companies 12 Comparative 2020 GHG emissions intensity tCO2e/boe 0.08 0.06 0.04 0.02 0.00 ARC 1) Performance data for…
Emissions Performance and Targets ARC has reduced its emissions primarily through electrification of its BC facilities 1 Absolute GHG emissions reduction 2025 emissions-reduction targets tCO2e, boe/day Relative to 2019 baseline2…
Appendix
Historical Performance ARC has managed a profitable business through all commodity price cycles with its efficient Montney assets, capital discipline, and strong balance sheet Production Net debt to FFO Dividends1 boe/day billions,…
Risk Management Contracts Positions ARCs long-term focus is to reduce downside risk and create certainty in cash flows 12 As at March 31, 2022 Q2 2022 to Q4 2022 2023 2024 2025 Crude Oil WTI US/bbl bbl/day US/bbl bbl/day US/bbl…
Asset Details ARC consistently delivers strong results across its asset base Greater Kakwa Sunrise Ante Creek Attachie Dawson Production1 Crude oil & liquids (bbl/day) 98,619 20,638 61 8,549 1,811 Natural gas (MMcf/day) 456.3…
ESG Ratings and Rankings View ARCs ESG performance and highlights at www.arcresources.com/responsibility Member of MSCI Global Sustainability Index Member of Sustainalytics Jantzi Social Index MSCI ESG Rating: AAA Voluntary…
Advisory Statements
Advisory Statements Non-GAAP Financial Ratios Netback per boe ARC calculates netback per boe as netback divided by weighted average daily production. Netback is a non-GAAP financial measure component of netback per boe. Management…
Investor Relations Contacts Dale Lewko General Investor Relations Enquiries Manager, Capital Markets 403.503.8600 403.503.8696 1.888.272.4900 DLewkoarcresources.com IRarcresources.com
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