Skip to main content January 2015 Investor Presentation – Arc Resources Ltd. | Shale Experts
Loading...
Database
Slide Database

January 2015 Investor Presentation – Arc Resources Ltd.

Arc Resources Ltd. · Jan 30, 2015 · 75 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. January 2015 Investor Presentation – Arc Resources Ltd. – slide 1
    January 2015
  2. January 2015 Investor Presentation – Arc Resources Ltd. – slide 2
    Value Proposition Clear Line of Sight to Long-term Value Creation
  3. January 2015 Investor Presentation – Arc Resources Ltd. – slide 3
    Value Creation Culture Culture Focused on Organizational Learning Drives Ongoing Success Technology Efficiency Opportunity Applying New Focus on Operational Building for the Technology: Efficiency: Long-Term: Longer Laterals…
  4. January 2015 Investor Presentation – Arc Resources Ltd. – slide 4
    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 / 5.4% (3) Annualized…
  5. January 2015 Investor Presentation – Arc Resources Ltd. – slide 5
    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…
  6. January 2015 Investor Presentation – Arc Resources Ltd. – slide 6
    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%
  7. January 2015 Investor Presentation – Arc Resources Ltd. – slide 7
    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…
  8. January 2015 Investor Presentation – Arc Resources Ltd. – slide 8
    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…
  9. January 2015 Investor Presentation – Arc Resources Ltd. – slide 9
    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…
  10. January 2015 Investor Presentation – Arc Resources Ltd. – slide 10
    Risk Managed Value Creation 15% Compound Annual Production Growth (CAGR) Since Inception 140,000 120,000 100,000 boe/d Forecast Forecast 80,000 60,000 40,000 20,000 0 Non-Montney Liquids Montney…
  11. January 2015 Investor Presentation – Arc Resources Ltd. – slide 11
    Sustainable Dividend Committed to the Dividend While Delivering Profitable Growth 16% annualized total return since inception, 5.3 billion of dividends (31.08/share) 5,500 Cumulative Dividends and Historic Payout Ratio 120% 5,000…
  12. January 2015 Investor Presentation – Arc Resources Ltd. – slide 12
    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)…
  13. January 2015 Investor Presentation – Arc Resources Ltd. – slide 13
    ARCs Proven Development Model Inventory of Opportunities at all Stages
  14. January 2015 Investor Presentation – Arc Resources Ltd. – slide 14
    Asset Overview
  15. January 2015 Investor Presentation – Arc Resources Ltd. – slide 15
    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
  16. January 2015 Investor Presentation – Arc Resources Ltd. – slide 16
    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…
  17. January 2015 Investor Presentation – Arc Resources Ltd. – slide 17
    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…
  18. January 2015 Investor Presentation – Arc Resources Ltd. – slide 18
    Montney Assets
  19. January 2015 Investor Presentation – Arc Resources Ltd. – slide 19
    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…
  20. January 2015 Investor Presentation – Arc Resources Ltd. – slide 20
    Significant Montney Land Position 3rd Largest Montney Landholder With Over 620,000 Net Acres 1,400 Top Montney Acreage Holder(1) 000 acres 1,200 1,000 Montney Acres (000's) 70% of ARCs Montney land is 800 undeveloped,…
  21. January 2015 Investor Presentation – Arc Resources Ltd. – slide 21
    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,…
  22. January 2015 Investor Presentation – Arc Resources Ltd. – slide 22
    ARC in the Montney 40% Annual Montney Growth over 5 Year Period (2009 2014) 40% CAGR 2009 2014F 100,000 30% CAGR 2000 2014F 2014 90,000 Parkland Gas 2013 Plant: Phase 1 80,000 Construction begins on 70,000 2012 Parkland…
  23. January 2015 Investor Presentation – Arc Resources Ltd. – slide 23
    NE BC Montney Reserves & Resources NE BC Montney TPIIP 55 Tcf of Gas and 2.2 Billion Barrels of Oil Corporate P+P Reserves of 634 mmboe OIL P+P RESERVES 11.3 mmbbls 2.2 Tcf NGL 27.6 mmbbls OIL ECONOMIC CONTINGENT RESOURCE 10.7…
  24. January 2015 Investor Presentation – Arc Resources Ltd. – slide 24
    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…
  25. January 2015 Investor Presentation – Arc Resources Ltd. – slide 25
    Montney Infrastructure Optionality Well Positioned For Market Access Area is currently well served with three major pipelines providing access to North American Markets: TransCanada Canada & US ARC Lands Alliance Chicago…
  26. January 2015 Investor Presentation – Arc Resources Ltd. – slide 26
    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…
  27. January 2015 Investor Presentation – Arc Resources Ltd. – slide 27
    Dawson Asset Details Excellent Free Cash Flow Net production (boe/d) Q3 2014 28,000 ARC Proposed Gas Plant (90 mmcfd & 7,500 Liquids (bbls/d) 920 bbls/d liquids) Gas (mmcf/d) 162 ARC 1-34 Production split % (liquids/gas) 97% gas…
  28. January 2015 Investor Presentation – Arc Resources Ltd. – slide 28
    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…
  29. January 2015 Investor Presentation – Arc Resources Ltd. – slide 29
    Operational Excellence Dawson Continual Learning in Frac Design = Lower Costs + Improved Economics Lower Cost per Frac, Increasing Frac Intensity Longer Laterals, Tighter Frac Spacing 300,000 30 2,100 200 180 250,000 25 2,050…
  30. January 2015 Investor Presentation – Arc Resources Ltd. – slide 30
    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…
  31. January 2015 Investor Presentation – Arc Resources Ltd. – slide 31
    Dawson Development Economics 65% Rate of Return at Flat 3/GJ AECO and C85/bbl Key Metrics 7,000 DCET Capex per well (MM) 5.5 Reserve estimate (Bcf) 7.4 6,000 IP (1 mo) (MMcf/d) 6.2 IP (12 mo) (MMcf/d) 5.4 5,000 Half Cycle…
  32. January 2015 Investor Presentation – Arc Resources Ltd. – slide 32
    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…
  33. January 2015 Investor Presentation – Arc Resources Ltd. – slide 33
    Dawson Infrastructure New Facility Planned For 2017 On-stream New Dawson Phase III Gas Plant 90 mmscfd with 7,500 bbls/day of liquids handling New site ideally situated in the Lower Montney/Liquids Rich play Designed to handle…
  34. January 2015 Investor Presentation – Arc Resources Ltd. – slide 34
    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…
  35. January 2015 Investor Presentation – Arc Resources Ltd. – slide 35
    Parkland/Tower Asset Details Material Value Creation in 2014 Parkland Tower Net production (boe/d) 18,200 6,880 Q3 2014 Liquids (bbls/d) 3,700 4,940 Gas (mmcf/d) 87 11.6 Land (net sections) 23 57 Working Interest 84% 92% Reserves…
  36. January 2015 Investor Presentation – Arc Resources Ltd. – slide 36
    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…
  37. January 2015 Investor Presentation – Arc Resources Ltd. – slide 37
    Operational Excellence Tower Optimal Frac Design and Significant Efficiency Gains in Tight Oil Play 60% Decrease in Cost/Frac, 2X Increase in Applying Learnings in Well Length and Frac Intensity Frac Spacing 160,000 70 2,500 90 80…
  38. January 2015 Investor Presentation – Arc Resources Ltd. – slide 38
    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.…
  39. January 2015 Investor Presentation – Arc Resources Ltd. – slide 39
    Tower Development Economics 50% Rate of Return at Flat 3/GJ AECO and C85/bbl 1400 Key Metrics 1200 DCET Capex per well (MM) 6.5 2P Reserve Estimate (Mboe) 600 1000 IP (1 mo) (boe/d) 1000 IP (12 mo) (boe/d) 400 800 Half Cycle…
  40. January 2015 Investor Presentation – Arc Resources Ltd. – slide 40
    Tower 2014 Wells New Completions Delivering Breakthrough Performance Total Production (boe/d) Oil Production (bbl/d) Old completion 12-16 Pad design 5-14 Pad (2014) New completion 8-15 Pad (2014) design 2015 Type curve 2015…
  41. January 2015 Investor Presentation – Arc Resources Ltd. – slide 41
    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)…
  42. January 2015 Investor Presentation – Arc Resources Ltd. – slide 42
    Operational Excellence Parkland Learnings from Dawson = Advanced Frac Design and Improved Results at Parkland Optimizing Fracs, Lowering Costs Optimizing Well Length and Frac Spacing 300,000 35 2,050 110 250,000 30 2,000…
  43. January 2015 Investor Presentation – Arc Resources Ltd. – slide 43
    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…
  44. January 2015 Investor Presentation – Arc Resources Ltd. – slide 44
    Parkland Development Economics 50% Rate of Return at Flat 3/GJ AECO and C85/bbl 1200 Key Metrics DCET Capex per well (MM) 5.7 1000 2P Reserve Estimate (Bcfe) 5.8 IP (1 mo) (boe/d) 1080 800 IP (12 mo) (boe/d) 645 Half Cycle…
  45. January 2015 Investor Presentation – Arc Resources Ltd. – slide 45
    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…
  46. January 2015 Investor Presentation – Arc Resources Ltd. – slide 46
    Sunrise/Sunset Asset Details Sunrise/Sunset Moving Forward with Full Scale Development Sunrise has progressed from pilot to full scale development Net production (boe/d) Q3 2014 7,050 Liquids (bbls/d) 0 Gas (mmcf/d) 42.3 Land…
  47. January 2015 Investor Presentation – Arc Resources Ltd. – slide 47
    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…
  48. January 2015 Investor Presentation – Arc Resources Ltd. – slide 48
    Operational Excellence Sunrise Incorporating Learnings into Early Development = Excellent Initial Results Doubling Fracs/well over 3 years Efficient Lateral Lengths 2,500 140 250,000 35 120 30 2,000 Lateral Length…
  49. January 2015 Investor Presentation – Arc Resources Ltd. – slide 49
    Sunrise Outperforming Expectations 2014 Drilling Results Prove Four Layer Development Model 10,000 2014 Type Curve (11.7 Bcf Raw) 9,000 08-24Hz (MTYA) 8,000 C09-13Hz (Lower (UpperMTYA) MTYA+) 7,000 B02-25Hz (MTYB) - see note…
  50. January 2015 Investor Presentation – Arc Resources Ltd. – slide 50
    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…
  51. January 2015 Investor Presentation – Arc Resources Ltd. – slide 51
    Sunrise Development Economics 50% Rate of Return Flat at 3/GJ AECO and C85/bbl 7,000 Key Metrics DCET Capex per well (MM) 6.0 2P Reserve Estimate (Bcf) 11.5 6,000 IP (1 mo) (MMcf/d) 6.2 IP (12 mo) (MMcf/d) 5.4 5,000 Half Cycle…
  52. January 2015 Investor Presentation – Arc Resources Ltd. – slide 52
    Montney Pilot Projects Significant Future Potential
  53. January 2015 Investor Presentation – Arc Resources Ltd. – slide 53
    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…
  54. January 2015 Investor Presentation – Arc Resources Ltd. – slide 54
    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…
  55. January 2015 Investor Presentation – Arc Resources Ltd. – slide 55
    Ante Creek Asset Details Significant Cash Flow with Substantial Growth Opportunity Net production (boe/d) Q3 2014 17,800 Liquids (bbls/d) 9,300 Gas (mmcf/d) 51 Production split % (liquids/gas) 52/48 Land (Montney net sections)…
  56. January 2015 Investor Presentation – Arc Resources Ltd. – slide 56
    Ante Creek Significant Drilling Inventory Large Land Base and Down-spacing = Significant Drilling Inventory Booked reserves exist on 30% of ARC held mineral rights Significant opportunity to prove up this large land base with…
  57. January 2015 Investor Presentation – Arc Resources Ltd. – slide 57
    Operational Excellence Ante Creek Reducing Business Cycle Times with Optimized Frac Design Drilling Longer Laterals in Fewer Days Lower Cost/Frac, Optimizing Frac Intensity 2,500 20 180,000 180 19 160,000 160 Lateral Length…
  58. January 2015 Investor Presentation – Arc Resources Ltd. – slide 58
    Ante Creek Delivering Results Type Curve Consistency Moving Out of the Core Completions 2012 2013 2014 2015 Ante Creek Normalized Type Curves for Montney Horizontal Wells Frac spacing (m) 120 100 100 80 500 Fracs per well 14 17 16…
  59. January 2015 Investor Presentation – Arc Resources Ltd. – slide 59
    Ante Creek Development Economics 50% Rate of Return at Flat 3/GJ AECO and C85/bbl 400 Key Metrics 350 DCET Capex per well (MM) 4.2 2P Reserve Estimate (Mboe) 290 300 IP (1 mo) (boe/d) 375 IP (12 mo) (boe/d) 210 250 Half Cycle…
  60. January 2015 Investor Presentation – Arc Resources Ltd. – slide 60
    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…
  61. January 2015 Investor Presentation – Arc Resources Ltd. – slide 61
    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.…
  62. January 2015 Investor Presentation – Arc Resources Ltd. – slide 62
    Financial Strategy
  63. January 2015 Investor Presentation – Arc Resources Ltd. – slide 63
    Financial Strategy Financial Flexibility Provides Optionality
  64. January 2015 Investor Presentation – Arc Resources Ltd. – slide 64
    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…
  65. January 2015 Investor Presentation – Arc Resources Ltd. – slide 65
    Multiple Sources of Debt Significant Available Credit Capacity of 1.1 Billion 2.1 Billion Total Credit Capacity Bank Credit Facility (1.1 Billion Available) 2.5 1 Billion credit facility plus 40 Master Shelf million working…
  66. January 2015 Investor Presentation – Arc Resources Ltd. – slide 66
    Summary
  67. January 2015 Investor Presentation – Arc Resources Ltd. – slide 67
    Value Proposition Clear Line of Sight to Long-term Value Creation
  68. January 2015 Investor Presentation – Arc Resources Ltd. – slide 68
    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+ 140,000 Dawson Phase 3 120,000…
  69. January 2015 Investor Presentation – Arc Resources Ltd. – slide 69
    APPENDIX
  70. January 2015 Investor Presentation – Arc Resources Ltd. – slide 70
    Crude Oil Marketing 96% Condensate, Light and Medium Crude Oil Maintain control into liquid market hubs to ensure flexibility and optimize price Secured firm transportation pipeline agreements to support future development…
  71. January 2015 Investor Presentation – Arc Resources Ltd. – slide 71
    Natural Gas Commodity Marketing Diversified Sales Point and Purchasers of ARCs Natural Gas Sales are typically 70%/30% monthly/daily dependent upon operations and market environment Secured adequate take-away to support development…
  72. January 2015 Investor Presentation – Arc Resources Ltd. – slide 72
    NGL Commodity Marketing NGL Pipeline & Fractionation Capacity Secured ARCs NGL Exposure NGL revenue (5,000 bbl/d) makes up approximately 4% of ARCs revenue Ensuring NGL production moves to market protects ARCs oil & gas production…
  73. January 2015 Investor Presentation – Arc Resources Ltd. – slide 73
    Hedge Positions November 5, 2014 Active Hedging Program Supports Business Plan Summary of Hedge Positions as at November 5, 2014 (1) Remainder of 2014 2015 2016 - 2017 2018 2019 Crude Oil (2) WTI: (US/bbl) US/bbl bbl/d US/bbl bbl/d…
  74. January 2015 Investor Presentation – Arc Resources Ltd. – slide 74
    Reserves and Resources Disclosure All reserves and resources volumes for the BC Montney and elsewhere in this presentation are, unless indicated otherwise, as at December 31, 2013 as evaluated by GLJ Petroleum Consultants Ltd. in…
  75. January 2015 Investor Presentation – Arc Resources Ltd. – slide 75
    Definitions of Oil and Gas Reserves and Resources Economic Contingent Resources (ECR are those contingent resources which are currently economically recoverable. Undiscovered Petroleum Initially-In-Place (UPIIP) is that quantity of…

From the store

Browse maps, data & reports in the Shale Experts store