Skip to main content First Energy Montreal Energy Conference – Arc Resources Ltd. Investor Presentation | Shale Experts
Loading...
Pm

First Energy Montreal Energy Conference – Arc Resources Ltd.

Arc Resources Ltd. · Dec 10, 2014 · 47 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 1
    December 10, 2014
  2. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 2
    Value Proposition Clear Line of Sight to Long-term Value Creation
  3. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 3
    Corporate Profile Corporate Summary Production (Q3 2014) 115,530 boe/d Reserves (2P Gross YE 2013) (1) 634 mmboe Reserve Life Index (2P) (1) 15.5 years (2) Annualized Dividend / Dividend Yield 1.20 per share / 4.4% (3) Annualized…
  4. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 4
    Unique Strategy Risk Managed Value Creation is Central to ARCs Strategy Targeting net debt to funds 200% Reserve Replacement from operations between through the drill bit for the 1.0 1.5x past 6 consecutive years One of the…
  5. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 5
    High Quality Long Life Assets 200% or Greater Reserve Replacement Over the Past 6 Years Annual Reserve Replacement 700% Development 600% Acquisitions 500% 400% 300% 200% 100% 0%
  6. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 6
    Operational Excellence Capital Efficiencies Managing Declines and Driving Down Costs All In Capital Efficiencies /boe/d(1) 3 Year Avg. Capital Efficiencies /boe/d(2) 40,000 40,000 ARC Competitors 30,000 30,000 per boe/d…
  7. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 7
    Operational Excellence Cost Management Low Cost Producers Deliver Superior Returns Over Time Focused assets, characterized by high working interest, operatorship and ARC owned/operated facilities, provides control over costs and…
  8. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 8
    Financial Flexibility Balance Sheet Strength Targeting Net Debt to Funds from Operations Between 1.0 1.5x Net Debt to FFO 1,400 2.0 Net Debt to Funds from Operations 1,200 1.5 1,000 millions 800 1.0 600 400 0.5…
  9. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 9
    Sustainable Dividend Committed to the Dividend While Delivering Profitable Growth 18% annualized total return since inception, 5.2 billion of dividends (30.88/share) 5,500 Cumulative Dividends and Historic Payout Ratio 120% 5,000…
  10. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 10
    Growth in Per Share Production and Cash Flow Delivering Value with Profitable Growth and Income 38% increase in production per share and 69% increase in Funds from Operations per share over five year period Production per Share(1)…
  11. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 11
    Risk Managed Value Creation 15% Compound Annual Production Growth (CAGR) Since Inception boe/d Forecast
  12. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 12
    ARCs Proven Development Model Inventory of Opportunities at all Stages
  13. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 13
    Asset Overview
  14. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 14
    Operations Overview Western Canadian Producer Strategic Optionality BRITISH COLUMBIA ALBERTA SASKATCHEWAN MANITOBA NE British Columbia Northern Alberta Redwater Pembina Southern Alberta SE Sask and Manitoba
  15. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 15
    Focused Production and Reserves Montney Comprises 70% of Production and 2P Reserves Production (boe/d) Q3 2014 2P Reserves (Mmboe) YE 2013(1) 40,000 200 180 Montney Montney 160 30,000 80,000 boe/d (70%) 457 mmboe (72%) 140…
  16. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 16
    Complimentary Asset Base Montney Growth Assets Underpinned by Free Cash Flow Generating Base Assets Invested 2.3 billion of capital in Montney growth assets during 2009 2014F Base assets generated 1.6 billion of free cash flow…
  17. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 17
    Montney Assets
  18. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 18
    Why the Montney Total Recoverable Resource Ranks High Amongst North American Resource Plays Massive thickness Large areal extent (500km) Superior lithology and fracability High permeability Over pressured Montney Higher…
  19. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 19
    Multiple Layers to Develop Attachie Septimus Sunrise Tower Parkland Dawson Pouce Coupe Montney A Upper Montney Montney B Montney C Lower Montney Montney D Montney E Existing Horizontal Wells,…
  20. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 20
    ARC in the Montney 40% Annual Montney Growth over 5 Year Period (2009 2014) 40% CAGR 2009 2014 2015 100,000 Sunrise 30% CAGR 2000 - 2014 Development 2014 90,000 Parkland Gas 2013 Plant: Phase 1 80,000 Construction begins…
  21. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 21
    NE BC Montney Reserves & Resources NE BC Montney TPIIP 55 Tcf of Gas and 2.2 Billion Barrels of Oil Corporate 2P Reserves of 634 mmboe OIL RESERVES 11.3 mmbbls 2.2 Tcf NGL 27.6 mmbbls OIL ECONOMIC CONTINGENT RESOURCE 10.7…
  22. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 22
    Montney Development Economics Strong Rates of Return Across the Montney Portfolio Half Cycle Economics Cdn85/bbl Oil and Cdn3/GJ Gas Parkland Tower Dawson Sunrise Ante Creek 50% IRR 50% IRR 65% IRR 50% IRR 50% IRR 4.2x Recycle…
  23. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 23
    Dawson Gas World Class Resource, Unlimited Potential *Breakeven Cdn per bbl or mcf price as indicated defined as price at which NPV10 is equal to zero. *IRR Half cycle after tax rate of return based on C85/bbl Edm MSW and C3/GJ AECO…
  24. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 24
    Dawson Development Potential Additional Development Layer Below Core Acreage Dawson Dawson core development has been Upper Upper Montney A Montney Booked Reserves* focused on Upper Montney A; 55% of lands currently have no…
  25. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 25
    Dawson Gas Type Curve Growth Frac Technology Advancements = Improvements in Well Performance Type curve growth over time due to Completions 2009-2011 2012 2013- 2015 2014 improvements in well design, focused on completions and…
  26. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 26
    Dawson A Cash Flow Machine Low Reinvestment Ratio to Maintain Significant Free Cash Flow Grown production from 50 Mmcfe/d in 2009 to 165 Mmcfe/d by mid 2012 At Cdn3 gas 30% Reinvestment Ratio to sustain cash flow and generate 100…
  27. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 27
    Parkland/Tower Reaping Acquisition Benefits *Breakeven Cdn per bbl or mcf price as indicated defined as price at which NPV10 is equal to zero. *IRR Half cycle after tax rate of return based on C85/bbl Edm MSW and C3/GJ AECO *Free…
  28. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 28
    Parkland/Tower Development Potential Incremental Reserves Potential with Multilayer Development Upper Montney Upper Montney A supports two layers Booked Reserves* of development at Upper Montney Parkland and Tower At year end…
  29. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 29
    Parkland Development Economics Targeting Liquids With Step Out From Core Completions 2012 2013 2014 2015 Frac spacing (m) 180 100 80 70 1,200 2012 Type Curve (Dry Gas) Fracs per well 10 15 22 30 Avg. tonnage per 100 60 60 100…
  30. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 30
    Tower Completions Advancement Advanced Completion Design = Improved Performance 1,200 Completions 2014 2015 2014 Type Curve Frac spacing (m) 40 25 1,000 Fracs per well 44 60 2015 Type Curve Production Rate (boe/d) Avg.…
  31. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 31
    Tower Cumulative Production New Wells are Exceeding Type Curve Total Production (boe) Oil Production (bbl) 2015 Type curve 2015 Type curve 2014 Type curve 2014 Type curve Old completion 12-16 Pad design 5-14 Pad (2014)…
  32. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 32
    Sunrise Long-term Growth Opportunity *Breakeven Cdn per bbl or mcf price as indicated defined as price at which NPV10 is equal to zero. *IRR Half cycle after tax rate of return based on C85/bbl Edm MSW and C3/GJ AECO *Free Cash Flow…
  33. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 33
    Sunrise Development Potential Proven Productivity from Four Layered Development Known reserves exist in Upper Montney A. 2014 Upper Montney A Booked Reserves* drilling program has proved Upper Montney Upper Montney Upper…
  34. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 34
    Sunrise Continuous Improvements Enhanced Well Design = Type Curve Improvement Completions 2009-2011 2013-2014 2015 7,000 2015 Type Curve (11.5 Bcf) Frac spacing (m) 120 80 80 6,000 Fracs per well 16 25 25 2013/14 Type Curve (11…
  35. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 35
    Montney Pilot Projects Significant Future Potential
  36. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 36
    Montney Pilots Proving Future Value Before Full Scale Development West Attachie: Pilot Production on-stream since Parkland: Q2 2014 Red Creek Lower Montney well on-stream Q3 Attachie 2014 East Attachie: Pouce Coupe: Monitoring…
  37. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 37
    Financial Strategy
  38. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 38
    Financial Strategy Financial Flexibility Provides Optionality
  39. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 39
    Sustainability Balancing Inflows and Outflows for Long-Term Sustainability Objective to fully fund ARC's Dividend and Sustaining Capital from Funds from Operations (FFO) over the long-term Profitable Growth Capital will be funded…
  40. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 40
    Summary
  41. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 41
    Looking Beyond 2016 Diverse Portfolio Provides Strategic Optionality ARC has a well balanced inventory of value creating opportunities which may be pursued beyond 2016 Project Options 2016 - 2020+ Dawson Phase 3 Pouce…
  42. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 42
    Value Proposition Clear Line of Sight to Long-term Value Creation
  43. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 43
    Appendix
  44. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 44
    2015 Capital Budget 875 Million 2015 Capital Program Forecast to Deliver Record Production of 120,000-125,000 boe/d Focus on oil and liquids-rich gas and low cost, high rate of return Montney gas development BRITISH COLUMBIA…
  45. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 45
    Ante Creek A Montney Success Story *Breakeven Cdn per bbl or mcf price as indicated defined as price at which NPV10 is equal to zero. *IRR Half cycle after tax rate of return based on C85/bbl Edm MSW and C3/GJ AECO *Free Cash Flow…
  46. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 46
    Pembina Revitalizing a Mature Oil Field *Breakeven Cdn per bbl or mcf price as indicated defined as price at which NPV10 is equal to zero. *IRR Half cycle after tax rate of return based on C85/bbl Edm MSW and C3/GJ AECO *Free Cash…
  47. First Energy Montreal Energy Conference – Arc Resources Ltd. – slide 47
    SE Saskatchewan/Manitoba Solid Long Life Assets *Breakeven Cdn per bbl or mcf price as indicated defined as price at which NPV10 is equal to zero. *IRR Half cycle after tax rate of return based on C85/bbl Edm MSW and C3/GJ AECO…

From the store

Browse maps, data & reports in the Shale Experts store