ARC Resources Ltd. Investor Update Photo Caption copy area June 2023
Dale Agenda Speaker: Dale Strategic Overview & Terry Anderson 1 President and Chief Executive Officer Long-term Plan 2 Capital Allocation Kris Bibby Senior Vice President and Chief Financial Officer 3 Asset Overview Armin…
Senior Leadership Speaker: Dale Terry Anderson Kris Bibby Armin Jahangiri President and Senior Vice President and Senior Vice President and Chief Executive Officer Chief Financial Officer Chief Operating Officer Lara…
Ante Creek, AB Best-in-class Responsible Energy Producer
Corporate Profile Premium investment opportunity for Montney exposure, one of the most profitable assets in North America Shares outstanding1 609 million 1 Canadas Market capitalization 10.0 billion largest Long-term debt2 1.0…
Scale in a World-class Resource Play Largest Montney producer, Canadas largest condensate producer and 3 rd largest gas producer Mboe/day BC and Alberta Montney Producers Mbbl/day Montney Condensate & Liquids Producers 400 160…
Transformation to the Largest Montney Producer Large concentrated asset base drives efficiency, well positioned for the future 2014 2023 NEBC Pouce Prestville Valhalla Chinchaga 1 million Hotchkiss NEBC Montney acres Hawk Hills 1…
Actions Taken to Deliver Free Funds Flow Growth Executing our strategy to increase future profitability 2021 to 2023 Transformational counter-cyclical acquisition that doubled production to 350,000 boe/day Achieved investment-grade…
What Differentiates ARC Guiding principles to cement ARC as a Blue Chip energy company Capital Operational Financial World-class Discipline Excellence Resilience Assets Low-cost Producer Best-in-class Investment-grade Credit…
Dawson III & IV, BC Strategic Overview and Long-term Plan
Five-Year Outlook Delivers Significant Value Disciplined plan to grow free funds flow per share1 Boe/day Base Production Attachie I Attachie II 450,000 200% 400,000 Free Funds Flow Per Share Growth (20% CAGR4) 350,000 80%…
Long-term Resource Optionality Unmatched inventory runway in a world-class asset Boe/d Production Outlook 600,000 500,000 400,000 300,000 200,000 100,000 0 2023 2024 2025 2026 2027 2028 Gas NGL Condensate Future…
Global Leader in Responsible Energy Development Providing reliable, affordable and sustainable energy to global demand markets Targeting up to 25% Exposure to International Pricing 13
Investment Case for ARC Disciplined Growth Five-year plan to more than double free funds flow per share Achieved by unlocking Montney development and reducing the share count Speaker: Dale Commitment to Shareholder Returns…
Kakwa, AB Capital Allocation
Track Record of Capital Discipline A disciplined investment framework fundamental to profitable growth 1 Return on Average Capital Employed % 40 30 Average 13% 20 10 0 (10) (20) 16 1) Non-GAAP Financial Measure see…
Capital Allocation Lower reinvestment requirement allows for profitable growth and superior return on capital Reinvestment Rate1 2 Reinvestment Rate Average (Build Out & De-Risk Phase) Average (Staged Development) 120% 100%…
Five-Year Outlook Disciplined investment drives free funds flow per share growth millions Capital Expenditures1 2 millions Free Funds Flow2 2000 3,000 WTI 50/AECO 2.50/GJ WTI 70/ AECO 3.50/GJ WTI 80/AECO 4.50/GJ 1000 2,500 0…
Free Funds Flow Per Share1 2 Growth Sustainable per share growth per share 5.00 4.00 3.00 2.00 1.00 0.00 2023 2025 2028 Montney investment and share repurchases drive 20% free funds flow per share CAGR 3 19 1)…
Free Funds Flow Allocation Committed to returning essentially all free funds flow to shareholders Capital Allocation Priorities 2023 Capital Allocation 2028 Capital Allocation billions Balance Sheet Strength 5.0 Investment-grade…
Return of Capital Strategy Balancing sustainable dividend growth with share repurchases Dividend per share Dividend payout ratio Outstanding shares Shares (millions) 10% 1.20 800 Dividend Per Share Growth CAGR3 700 1.00 15% 600…
Debt Strategy ARC is a balance sheet first organization millions Simple Investment Grade Capital Structure 3,000 1.0 billion low-cost, long-term notes provide stability DBRS BBB (stable) 2,500 Weighted average interest rate 2.9%…
Parkland, AB Asset Portfolio Overview
Montney Overview ARCs competitive advantage in a world-class asset 1,600 Montney sections 5,000+ Tier 1 drilling locations 87% of these locations are unbooked 1.5 Bcf/d Owned-and-operated infrastructure 24 24
Montney Track Record of Execution Early movers to consolidate asset base at a low cost and deliver sustained profitable growth Boe per day 2028 Attachie 440,000 Montney Crude Oil & Liquids (bbl/d) 2025 Phase II Montney Natural Gas…
Large Network of Owned-and-operated Infrastructure Owned infrastructure results in approximately 300 million of cost avoidance annually Dawson Phase I & II Attachie Phase I 120 MMcf/day 90 MMcf/day3 1.5 Bcf/d processing capacity…
NEBC Montney Operational Excellence ARC outperforms industry peers on both drilling and completions operating metrics Completions Efficiency Completions Efficiency Proppant Pumped/Day 1 Lateral Completed/Day1 Tonnes/day m/day 3,000…
Greater Kakwa Montney Operational Excellence ARC continues to deliver top-quartile completions and drilling efficiencies in Kakwa Completions Efficiency Completions Efficiency Proppant Pumped/Day 1 Lateral Completed/Day 1 ARC m/day…
Deep Inventory of Development Opportunities ARC has substantial Montney drilling inventory at each of our producing and growth assets Locations 2,000 15 years of 20 years of Inventory Inventory 1,000 10 years of Inventory…
Kakwa Overview Liquids-rich asset offering a long runway of development…
Kakwa Outperformance Improved efficiencies via systematic design progressions Widened Inter-Well Spacing Single Layer Development 135 meters to 175 meters Trialed where layers differ in reservoir quality, and drilling and completion…
Dawson Overview Flagship asset delivering superior free funds flow2 with a long inventory runway 1 Tcf Natural Gas Produced Developed (33%) SCALE Undeveloped (67%) UMA 67% Undeveloped 20 Years of Inventory at current drilling…
Sunrise Overview Scale, low-cost, near-zero emissions the key ingredients to supply West Coast LNG EFFICIENT Highly efficient dry natural gas play due to stacked Developed (37%) UMA development layers Undeveloped (63%)…
Septimus and Sundown Overview Capable of delivering approximately 1 Bcf per day of combined production for 15 years Quick Facts Sundown land position1 36,600 acres Septimus land position1 19,100 acres Inventory 15 years at 1…
Attachie, BC Attachie Phase I
Attachie Overview ARCs largest and most economic undeveloped asset Scale to Replicate Kakwa EFFICIENT SCALE UMA 300 net sections in condensate-rich Montney LMA Consolidated Land Base Drives Efficiencies 3 Phases of…
Attachie Phase I Overview Aiming to deliver the most efficient Montney development to-date 740 MM to construct and fill facilities 40 Mboe/d Processing capacity 2025 Targeting full production capacity Low-Emissions…
Attachie Phase I Performance replicates Kakwa Cum Condensate (Mbbl) PERFORMANCE Condensate (bbl/d) Well performance at Attachie Phase I replicates Kakwa core for both gas and liquids Month Month EFFICIENT Cum Gas…
Attachie Phase I Economics Full production anticipated in 2025; project payout in 2027 Economic Outlook Economics (2023 to 2032) millions 740 million of capital to build and fill the facility 5,000 500 million of netback3 in 2025+…
Asset Strategy Summary Inventory rich across all assets, continued focus on optimizing capital efficiency NEBC Assets 45% of corporate production Greater Dawson: Continued focus on minimizing sustaining capital to maximize free…
Sunrise, AB LNG & Marketing Strategy
Our Marketing Strategy Accessing global demand markets at the lowest cost Market Market Price Access Diversification Optimization Securing long-term Accessing diversified Increasing revenues transportation arrangements…
Condensate Supply and Demand Outlook 35% of WCSB condensate demand 2022 Canadian Oil Sands Blending Demand is met by supply imported from the 700 Mbbl/d U.S. market Import pipelines run at high utilization 2022 WCSB Production 450…
Natural Gas Marketing Strategy Portfolio with well-diversified North American exposure is driving strong realizations 12 Natural Gas Financial Exposure ARCs Current Natural Gas Portfolio 11% 9% 10% 15% 14% 9% 10% 11% 8% 8% 9% 8%…
Natural Gas Price Realization Benchmarking Physical diversification to end markets is a competitive advantage Realized Natural Gas Price 1 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 2018 2019 2020 2021 2022…
Global LNG Supply and Demand Outlook Structural long-term outlook for global natural gas demand Bcf/d Historical Natural Gas Pricing Global LNG Supply and Demand Outlook 100 JKM (Asia) Henry Hub (North America) 80 80 70 60 60…
LNG Supply Agreements To ASIA JKM pricing Earm arked for next LNG agreement 47 47 1) Platts JKM TM (Japan Korea Marker), after deductions for fixed LNG shipping costs and a fixed liquefaction fee. 47 2) Non-binding…
LNG Economics Long-term supply agreements to diversify and access global natural gas pricing LNG Revenue Enhancement Sensitivity LNG access is an 800 775 MM Annual Incremental Net Revenue relative to AECO extension of ARCs…
ESG Strategy & Performance
Leading Emissions Profile ARC has one of the lowest emissions profiles amongst Canadian E&P companies 2021 Methane Intensity1 2021 GHG Emissions Intensity1 0.0800 0.0100 (Scope 1 and 2) Methane Intensity (tCO2e/boe)…
ESG Leadership Northeast BC Infrastructure NEBC Absolute GHG emissions reduction1 Production (Boed) Absolute Emissions (tCO 2e) 160,000 400,000 140,000 Attachie Parkland Electrified in 2018 120,000 Septimus 300,000 100,000…
ESG Leadership Through Innovation Driving operational efficiencies and enabling top-quartile emissions performance OUR APPROACH ARC has committed to invest Invest 50 in emerging technologies directly (equity) or indirectly (funds)…
Kakwa Field, AB Closing Remarks
Key Takeaways World-class Assets Largest condensate producer Kakwa has 15 years of inventory to sustain production at 180,000 boe/d Attachie Phase I unlocks decades of liquids-rich development opportunities Speaker: Dale…
Ante Creek, AB Best-in-class Responsible Energy Producer
Kakwa Field, AB Question & Answer Session
Advisory Statements Non-GAAP Financial Measures Capital Expenditures ARC uses capital expenditures to measure its capital investment level compared to the Companys annual budgeted capital expenditures. ARCs budgeted capital…
Advisory Statements Non-GAAP 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 believes…
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
Loading...
