Corporate Profile Premium investment opportunity for Montney exposure, one of the most profitable assets in North America Mboe/day BC & Alberta Montney Producers 400 1 Attachie Phase I Shares outstanding 590 million (2025E) 300 2…
Transformation to the Largest Montney Producer Large concentrated asset base drives efficiency, well positioned for the future 2014 2025E NEBC Pouce Prestville Valhalla Chinchaga NEBC 1 million Hotchkiss NEBC Montney acres Hawk Hills…
Investment Case for ARC World-class Assets Free Funds Flow Per Share1 2 Growth Canada's largest Montney & condensate producer 4.00 Capability to grow 500 Mboe/d and sustain for greater than 10 years 3.00 Commitment to…
2025 Capital Budget
2025 Guidance Production & Expenses 2025 Guidance Production Crude oil and condensate (bbl/day) 104,000 - 110,000 Natural gas (MMcf/day) 1,400 1,420 NGLs (bbl/day) 42,000 - 48,000 Total production (boe/day) 380,000 - 395,000…
2025 Guidance Capital Expenditures & Production Attachie 360MM Ante Creek 26 wells 37,500 boe/day 80MM 11 wells 20,000 boe/day Greater Dawson 195MM 21 wells Kakwa 95,000 boe/day 800MM 64 wells 172,500 boe/day Sunrise…
Dawson III & IV, BC Long-term Plan
Long-term Outlook Delivers Significant Value Disciplined plan to grow free funds flow per share1 Boe/day Base Production Attachie I Attachie II 425,000 400,000 250% 375,000 Free Funds Flow3 Per Share Growth 350,000 (35% CAGR4)…
Global Leader in Low-cost Energy Development Providing reliable and affordable low-cost energy to global demand markets 50% Natural gas production delivered to the US 25% Natural gas production linked to international…
Kakwa, AB Capital Allocation
Track Record of Capital Discipline A disciplined investment framework fundamental to profitable growth Return on Average Capital Employed1 40% 30% Average 12% 20% 10% 0% -10% -20% 12 1) Non-GAAP Financial…
Long-term Outlook Disciplined investment drives free funds flow per share growth millions Capital Expenditures1,2 millions Free Funds Flow2 2,000 WTI US50/B; AECO C2.50/GJ 3,000 WTI US70/B; AECO C3.50/GJ WTI US80/B; AECO…
Return of Capital Strategy Balancing sustainable dividend growth with share repurchases Shares 1.20 (millions) 800 10% Dividend per share Dividend payout ratio Outstanding shares Dividend Per Share Growth CAGR3, 4 750 1.00 700…
Parkland, BC Asset Portfolio Overview
Montney Scale & Inventory Consistent reserves per share growth 75% of ARCs drilling inventory is unbooked locations Reserves (boe per share) Drilling locations 4,000 4.00 PDP TP 2P 3,600 3,000 3.00 2,000 2.00 1,100 1.00…
Reserves Replacement1 2P reserve replacement from development 140% for 17 consecutive years 500% 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023…
Montney Overview ARCs competitive advantage in a world-class asset 4,700 Drilling locations 20 years High quality inventory 300 meters Thickness 1.7 Bcf/d 190 Mbbl/d Owned-and-operated infrastructure 18
Montney Outcompetes North America Plays Low-cost and deep inventory relative to North American shale plays 19 1) Turn-in line (TILs)
North American Natural Gas Inventory ARC has a 25-year inventory life economic below US2.50/MMbtu Source Enverus Intelligence Research 20
Montney Inventory ARC has a deep Montney inventory at the low end of the cost curve C/Mcf Supply Cost of Inventory by Property 3.50 Gas AT NPV10 Supply Cost (CAD/Mcf) 3.00 2.50 50% of total inventory has a supply cost…
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 Attachie Montney…
Large Network of Owned-and-operated Infrastructure Owned infrastructure results in approximately 300 million of cost avoidance annually Parkland 03-09 100 MMcf/day Attachie Phase I 90 MMcf/day 10 Mbbl/day 1.7 Bcf/d 25 Mbbl/day…
Kakwa Overview Liquids-rich asset offering a long runway of development 175,000 boe/d Able to sustain at 170,000 - 175,000 boe/d for the next 13 years SCALE Developed (50%) Kakwa development to date covers 50% Gold Creek Plant…
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…
Dawson Overview Flagship asset delivering superior free funds flow2 with a long inventory runway Developed (36%) 1 Tcf Natural Gas Produced Undeveloped (64%) SCALE UMA 61% Undeveloped Dawson Phase III & IV 2023-28 Asset…
Sunrise Overview Scale and low-cost the key ingredients to supply West Coast LNG EFFICIENT Highly efficient Developed (43%) dry natural gas play due to stacked Undeveloped (57%) UMA development layers Interconnected to Coastal…
Attachie Attachie, BC
Attachie Overview Phase I development delivering free funds flow in 2025 Scale for Multi-phase Development READINESS EFFICIENT SCALE Liquids sales to UMA Pembina 300 net sections in condensate-rich Montney Overpressured…
Attachie Phase I Overview Condensate rich and natural gas asset successfully commissioned in Q4 2024 Q1 2023 Q4 2023 Q1 2024 Q2 2024 Q4 2024 2025 Project Drilling First Pad Transmission Facility Complete Average production of…
Attachie Phase I Production Update 40,000 40 Production % Date (boe/day) Liquids 35,000 Nov 2024 18,000 63% 35 Dec 2024 28,500 63% Q4 2024 17,000 60% 30,000 30 Q1 2025E 30,000 - 35,000 60% 2025E 37,500 60% 25,000 25…
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)…
Sunrise, BC LNG & Marketing Strategy
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…
Natural Gas Marketing Strategy Portfolio with well-diversified global price exposure is driving strong realizations 12 ARCs Current Natural Gas Portfolio Natural Gas Financial Exposure 9% 11% 16% 16% 29% 16% 8% 8% 15% 11% 11%…
LNG Economics and Agreements Long-term supply agreements to diversify and access global natural gas pricing LNG Revenue Enhancement Sensitivity Long-term Agreements 800 775 MM Annual Incremental Net Revenue relative to AECO Cheniere…
Ante Creek, AB Appendix
Asset Level Inventory ARC has substantial Montney drilling inventory at each of our producing and growth assets Years of Development Inventory Production Run Rate at Full Capacity 0 5 10 15 20 25 30 (Mboe/d) Ante Creek Ante Creek…
Financial Strength Strong financial position has been a foundation of ARC for 28 years 2025 forecasted net debt sensitivities1 Long-term notes repayment schedule billions, ratio Cdn millions 1.5x 600 1.5 450 1.0x 1.0 300 0.5…
Greater Kakwa Montney Operational Excellence ARC continues to deliver top-quartile completions and drilling efficiencies in Kakwa Tonnes/day Completions Efficiency 3,000 Proppant Pumped/Day1 ARC Peer m/day Drilling Efficiency (m/day)…
NEBC Montney Operational Excellence ARC continues to outperform industry peers on both drilling and completions efficiencies in NEBC Completions Efficiency Tonnes/day Proppant Pumped/Day1 2,500 Drilling Efficiency (m/day) 12…
BC Landscape 100% of ARCs assets are outside of the Blueberry River First Nation high value areas Latest agreement removes the disturbance caps in PNG Area A that includes Attachie ARC is the sole oil and gas producer exempt…
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…
Attachie Drilling Efficiency Sustainable efficiency improvements since sanction Drilling Hole Size Drilling Days 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Optimization - Successful transition to 171 mm vs 200 mm hole (-2 days/well) 1,000…
Attachie Phase I Delivers production outcomes similar to Kakwa Cum Condensate (Mbbl) PERFORMANCE Condensate (bbl/d) Well performance at Attachie Phase I replicates Kakwa core for both gas and liquids Month Month…
Natural Gas Price Realization Benchmarking Physical diversification to end markets is a competitive advantage Realized Natural Gas Price1 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…
U.S. Natural Gas Market Outlook Rising export demand requires 15 Bcf/d of supply growth by 2030, a significant amount must be supplied by dry gas basins 20 U.S. Natural Gas Outlook: Full-Year 2030 vs. Full-Year 2024 15 Bcf/d…
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 LNG Canada Ph. 2 5 5 Cedar LNG Woodfibre…
Risk Management Contracts Positions ARCs long-term focus is to reduce downside risk and create certainty in cash flows 1 As at December 31, 2024 2025 2026 2027 2028 2029 Crude Oil WTI US/bbl bbl/day US/bbl bbl/day US/bbl bbl/day…
ESG Ratings and Rankings Member of MSCI Global Sustainability Index Score: 30.2 High (10th Percentile) MSCI ESG Rating: AAA Environment Score: 9 Social Score: 9 Member of the 30% Club since 2018 Governance Score: 1 50
Advisory Statements
Advisory Statements Notes Regarding Forward-looking Information ARC's future shareholder distributions, including but not limited to the payment of dividends, if any, and the level thereof is uncertain. Any decision to pay dividends on…
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
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