ARC Resources Ltd. Investor Update & Attachie Tour Photo Caption copy area October 2024 1
Senior Leadership 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 Conrad Ryan Berrett…
Agenda Introduction Dale Lewko 1 Manager, Capital Markets Corporate Overview Terry Anderson President and Chief Executive Officer Montney Overview Lara Conrad 2 Senior Vice President and Chief Development Officer Attachie…
Attachie, BC Corporate Overview 4
Corporate Profile Premium investment opportunity for Montney exposure, one of the most profitable assets in North America BC & Alberta Montney Producers 400 Attachie Phase I Shares outstanding1 597 million (2025E) 300 Market…
Long-term Outlook Delivers Significant Value Disciplined plan to grow free funds flow per share1 Boe/day 425,000 Base Production Attachie I Attachie II 400,000 200% 375,000 Free Funds Flow3 Per Share Growth 350,000 (30% CAGR4)…
Ante Creek, AB Montney Overview 7
Montney Overview ARCs competitive advantage in a world-class asset 1,500 Montney sections 5,000 drilling locations 80% of these locations are unbooked 1.7 Bcf/d 150 Mbbl/d Owned-and-operated infrastructure 8
Montney Outcompetes North America Plays Low-cost and deep inventory relative to North American shale plays 9 1) Turn-in line (TILs)
Montney Unconventional Fairway ARCs premium quality, balanced portfolio ARC Montney Assets 20 years of inventory Concentrated in over-pressured fairway Diverse fluid types (gas through to volatile oil) Condensate-rich resource…
ARC's Montney vs North American Peers A competitive advantage in a world-class asset 11 1) Turn-in line (TILs)
Montney Inventory ARC has a deep Montney inventory at the low end of the cost curve Supply Cost of Inventory by Property C/Mcf 3.50 Natural Gas Supply Cost - NPV10 After-tax 3.00 2.50 50% 2.00 of total inventory has a…
Asset Level Inventory ARC has substantial Montney drilling inventory at each of our producing and growth assets Production Run Rate at Full Capacity Years of Development Inventory (Mboe/d) 0 5 10 15 20 25 30 Ante Creek Ante Creek…
Attachie, BC Attachie Overview 14
Greater Attachie Development Plan Liquids sales to Pembina Attachie Resource 300 net sections for future development Multi-layered Overpressured liquids-rich resource Development Plan Phase II Natural gas and condensate…
Attachie Montney Subsurface Overview High-quality reservoir throughout ARCs lands Upper Montney reservoir thickness is consistent moving from west to east across Attachie Lower Montney reservoir thickness increases to the…
Integrated Workflow Identifying Opportunities Optimizing well design to maximize returns 2019 results (300 m interwell, 3 T/m) 280 Attachie West Upper Montney Type Curve (300 m interwell, 3 T/m) Cumulative Condensate (Mbbl)…
Attachie Phase I Infrastructure Update Halfway River 05-20 Plant Pipeline Crossing Completed Projects Remaining Work Water Recycling Hub Plant construction 90% complete Farrell Creek Pipeline Bridge Attachie Liquids Terminal…
Attachie Drilling and Completions Update 6 start-up pads: 90% of wells drilled. All start-up pads to be drilled by end of October. Using 2, best-in-class, high-spec AC triple drilling rigs 70% of wells fracture stimulated. Last…
Attachie Drilling Efficiency Sustainable efficiency improvements since sanction Drilling Days Drilling Hole Size Optimization - 0 2 4 6 8 10 12 14 Successful transition to 171 mm vs 200 mm hole (-2 days/well) 1,000 Drill…
Attachie Phase II High conviction on Attachie Phase II Liquids sales to Pembina Financial Phase II Subsurface Phase I Regulatory & Permitting Commercial Gas sales to TCPL and West Coast 22
Dawson III & IV, BC Operational Updates Other Key Assets 23
Kakwa Production Performance Production outcomes by vintage 30 Cumulative Production (Mboe per 100 metres) Highly productive reservoir 25 Every vintage of wells have delivered strong results 20 Infill drilling effectively…
Sunrise Development Plan Low-cost natural gas asset UMA ARCs sole dry gas asset Full-cycle breakeven of C1.10 per Mcf MA Upper Montney LMA (180 m) Well design changes yielding stronger productivity in Upper MB MB Montney…
Sunrise, BC Marketing Strategy & Fundamentals 26
Condensate Market Overview and Outlook WCSB condensate remains a structurally short market, reliant on imports to satisfy demand 2023 Canadian Oil 2023 WCSB Sands Production Blending Demand 475 Mbbl/d 750 Mbbl/d WCSB Condensate…
Condensate Demand Outlook WCSB condensate demand rising with brownfield expansions at oil sands operations; oil sands majors account for the vast majority of basin demand WCSB Condensate Demand 1,000 800 600 Mbbl/d…
U.S. Natural Gas Market Outlook Rising export demand requires 11 Bcf/d of supply growth by 2028, a significant amount must be supplied by dry gas basins U.S. Natural Gas Outlook: Full-Year 2028 vs. Full-Year 2024 12 10 Call-on…
WCSB Natural Gas Market Outlook WCSB demand projections suggest 3 Bcf/d of incremental production is required by 2028-2029 WCSB Natural Gas Outlook WCSB LNG Export Capacity Buildout 6 6 5 LNG Canada Ph. 2 5 Cedar LNG…
Natural Gas Marketing Strategy Portfolio with well-diversified global price exposure is driving strong realizations Natural Gas Financial Exposure1 2 ARCs Current Natural Gas Portfolio 9% 11% 14% 17% 15% 15% 29% 8% 8% 15% 8% 11%…
Kakwa, AB Capital Allocation 32
Long-term Outlook Disciplined investment drives free funds flow per share growth C millions C millions Free Funds Flow2 Capital Expenditures1,2 2,000 3,000 WTI US50/B; AECO C2.50/GJ WTI US70/B; AECO C3.50/GJ WTI US80/B; AECO…
Long-term Outlook Attachie drives sustainable production and free funds flow growth Boe per day Production & Cumulative Free Funds Flow1 C millions 450,000 8,000 7,000 6,000 400,000 5,000 4,000 3,000 350,000…
Return of Capital Strategy Balancing sustainable dividend growth with share repurchases Shares (millions) 10% 1.20 800 Dividend Per Share Growth CAGR3 Dividend per share Dividend payout ratio Outstanding shares 750 1.00 700 15%…
Kakwa Field, AB Closing Remarks 36
Key Takeaways World-class Assets Free Funds Flow Per Share1 2 Growth Canada's largest Montney & condensate producer 5.00 Capability to grow 500 mboe/d and sustain for greater than 10 years 4.00 Commitment to Shareholder Returns…
Advisory Statements Netback ARC computes netback as commodity sales from production less royalties, operating, and transportation expense. Management believes that netback is a key industry performance indicator and one that provides…
Advisory Statements Capital Management Measures Funds from Operations ARC considers funds from operations to be a key measure of capital management as it demonstrates ARCs ability to generate the necessary funds to maintain…
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 45
Loading...
