Barclays CEO Energy-Power Conference September 13, 2013
CORPORATE OVERVIEW Production (Q2 2013) 93,436 boe/d Reserves (2P Gross) 607 mmboe Reserve Life Index 17.5 years (1) Annual Dividend 1.20/share Annualized Total Return: Since Inception 18% (2) Since Jan 1, 2008 11% (3)…
VALUE PROPOSITION We believe that top performing companies all have the following attributes: Great assets Operational excellence Capital discipline Management that delivers results Strong balance sheet with financial flexibility…
RISK MANAGED VALUE CREATION PRODUCTION GROWTH
INCOME AND GROWTH ARC HAS DELIVERED BOTH ARC has a 17 year history of risk managed value creation Provided a 18% annual total return since inception Paid out 4.8 billion in total dividends - 29.38/share Grown absolute production from…
PER SHARE GROWTH RESERVES AND PRODUCTION PER SHARE GROWTH Consistent growth in absolute and per share reserves and production over the past five years Production per thousand shares 2P Reserves per share Normalized per thousand…
SUSTAINABLE DIVIDEND 4.8 BILLION IN DIVIDENDS SINCE INCEPTION The dividend is a critical component of our business strategy Sustained dividend levels through commodity price cycles due to quality of assets, active hedging program and…
STRATEGIC ADVANTAGE Risk Managed Value Creation
2013 BUDGET
FOCUS ON OIL AND LIQUIDS OIL AND LIQUIDS PRODUCTION GROWTH IN 2013 Focus on crude oil and liquids development resulted in liquids production of 36,600 boe/d in Q2 2013, slight growth relative to Q2 2012 attributed to Ante Creek,…
2013 CAPITAL PROGRAM SETTING THE STAGE FOR 2014 PRODUCTION GROWTH 830 million capital program (178 gross operated wells) with majority of spending in oil and liquids-rich gas plays and infrastructure. 2013 Capital Budget…
2013 BUDGET 2013/2014 PRODUCTION GROWTH
ASSET OVERVIEW
ASSET OVERVIEW WESTERN CANADA Montney Growth Assets Base Assets Blueberry Attachie Tower Septimus Parkland Sunset/Sunrise Dawson Sundown Ante Creek Redwater Natural Gas Pembina Liquids-rich gas Hatton Crude…
RESERVES AND RESOURCES The discussion in this presentation in respect of reserves and resources is subject to a number of cautionary statements, assumptions and risks as set forth below and elsewhere in this presentation. See also the…
KEY RESERVE INFORMATION 18% COMPOUND ANNUAL GROWTH Reserves as of December 31, 2012 (mmboe) - Proved Producing 201 (100 mmboe liquids, 607 bcf gas) - Total Proved 364 (127 mmbbls liquids, 1.4 Tcf gas) - Proved Plus Probable 607 (186…
MONTNEY LANDS WORLD CLASS RESOURCE NE BC Montney lands are a major growth engine. Significant opportunity to grow liquids production. Total BC Montney production of 230 mmcf/d natural gas and 2,300 bbls/d oil and liquids with…
ARC IN THE MONTNEY Tradition of Paced Development and Long-term Vision
NE B.C. MONTNEY VAST RESOURCE BASE We engaged GLJ to provide a resources evaluation of our properties at Dawson, Parkland, Tower, Sunrise/Sunset, Attachie, Septimus, Sundown and Blueberry located in northeastern British Columbia and at…
NE BC MONTNEY GROWTH ASSETS RESERVES AND RESOURCES Independent Resources Evaluation Corporate Reserves conducted by GLJ effective 607 mmboe December 31, 2012 186 mmbls liquids In addition to the 50.1 Tcf of natural 2.5 Tcf gas gas…
BRITISH COLUMBIA Montney Gas and Liquids
DAWSON World Class Asset
DAWSON ASSET DETAILS Net production (boe/d) Q2 27,700 2013 Liquids (bbls/d) 800 Gas (mmcf/d) 162 Production split % 97% gas (liquids/gas) Land (Montney net sections) 130 Working Interest 96% Reserves (2P mmboe) 181…
DAWSON A CASH FLOW MACHINE ARC grew production at Dawson from approximately 50 mmcfe/d in 2009 to 165 mmcfe/d by mid 2012 2009 and 2010 saw significant capital invested, and the property is now positioned to generate greater than 100…
DAWSON TYPE CURVE GROWTH 2008 type curve analysis was completed using initial production results and verified with a vertical well production multiplier 2009-2011 Type curve used P90 IPs with decline analysis and assigned decline…
DAWSON MONTNEY DEVELOPMENT ECONOMICS Key Metrics DCET Capex per well (MM) 5.2 Reserves per well (Bcf) 7.1 IP (1 mo) (MMcf/d) 5.0 IP (12 mo) (MMcf/d) 4.8 Economics (85/bbl) 4/GJ 3/GJ IRR (% AT) 70% 45% Recycle Ratio 3.8 2.8…
DAWSON 2013 BUDGET - 52MM OPERATED
PARKLAND/TOWER Liquids Rich Gas
PARKLAND/TOWER EVALUATING POTENTIAL AND DEVELOPING EXISTING LANDS Parkland Tower Net production (boe/d) 8,200 940 - Q2 2013 Liquids (bbls/d) 920 560 Gas (mmcf/d) 44 2.3 Land (net sections) 23 57 Working Interest 84% 90%…
PARKLAND LAYERED DEVELOPMENT Producing Formation: Upper Montney Gross thickness 100m Net pay 90m Porosity 6% Permeability 0.01 to 0.1 mD Large DGIP volumes in Parkland, currently have modest recoveries per well 100 Bcf DGIP…
PARKLAND LAYERED WELL PERFORMANCE Drilled and completed 2 wells in upper sand of the Upper Montney and 1 well offset in the lower sand in 2011 All wells had similar IP, ranging from 4.7 5.1 MMcfd No pressure response between the…
PARKLAND MONTNEY DEVELOPMENT ECONOMICS Key Metrics DCET Capex per well (MM) 5.2 Reserves per well (Bcf) 5.8 IP (1 mo) (MMcf/d) 5.0 IP (12 mo) (MMcf/d) 4.0 Economics (85/bbl) 4/GJ 3/GJ IRR (% AT) 80% 55% Recycle Ratio 4.2…
TOWER SIGNIFICANT DEVELOPMENT PROGRAM IN 2013 2012 Accomplishments: 2012 Operated Program average 30 day IP rate: 375 boe/d per well Production volumes limited due to liquid handling restrictions 2013 Plans: Two eight well…
TOWER OPERATIONAL EXCELLENCE MINIMIZING FOOTPRINT Pad drilling will substantially minimize surface land footprint Expect 8 to 16 wells per pad depending on reservoir characteristics Considerable cost savings related to pad…
TOWER MONTNEY DEVELOPMENT ECONOMICS Key Metrics DCET Capex per well (MM) 5.3 Reserves per well (Mboe) 400 IP (1 mo) (boe/d) 500 IP (12 mo) (boe/d) 260 Economics (85/bbl) 4/GJ 3/GJ IRR (% AT) 40% 35% Recycle Ratio 3.3 3.1…
TOWER/PARKLAND 2013 BUDGET - 249MM OPERATED
WEST MONTNEY Long-term Growth Opportunity
WEST MONTNEY ASSET DETAILS Net production (boe/d)- Q2 3,440 2013 Liquids (bbls/d) 70 Gas (mmcf/d) 20.2 Land (net Montney sections) 220 Working Interest 90% Reserves (2P mmboe) 131 Liquids (mmbbls) 11 Gas (bcf) 723 Reserve Life…
WEST MONTNEY OPERATIONAL EXCELLENCE DEVELOPMENT PLANNING
SUNRISE SUNRISE PRODUCTION OUTPERFORMING EXPECTATIONS Realized positive technical revisions in Sunrise based on 2-25 Hz well pad performance. Estimated Ultimate Recovery (EUR) is Cumulative Production + 2P Reserves. Montney A…
SUNRISE MONTNEY SUNRISE DEVELOPMENT ECONOMICS Key Metrics DCET Capex per well (MM) 5.5 Reserves per well (Bcf) 9.7 IP (1 mo) (MMcf/d) 5.2 IP (12 mo) (MMcf/d) 4.5 Economics (85/bbl) 4/GJ 3/GJ IRR (% AT) 50% 30% Recycle Ratio 4.5…
ANTE CREEK A Montney Oil Success Story
ANTE CREEK ASSET DETAILS Net production (boe/d) Q2 2013 11,700 Liquids (bbls/d) 5,800 Gas (mmcf/d) 35 Production split % (liquids/gas) 50/50 Land (Montney net sections) 340 Working Interest 100% Reserves (2P mmboe) 47.7…
ANTE CREEK MONTNEY DEVELOPMENT ECONOMICS Key Metrics DCET Capex per well (MM) 4.0 Reserves per well (Mboe) 283 IP (1 mo) (boe/d) 400 IP (12 mo) (boe/d) 245 Economics (85/bbl) 4/GJ 3/GJ IRR (% AT) 45% 35% Recycle Ratio 2.1…
ANTE CREEK 2013 BUDGET - 186MM OPERATED
SUMMARY
MONTNEY PROVIDES MULTI-YEAR DEVELOPMENT OPPORTUNITIES Represents executable production growth from a proven resource base Timing and location of growth projects are dependent on a number of assumptions including well performance,…
WHY INVEST IN ARC RESOURCES ARC is a top-tier oil and natural gas producer focused on Risk Managed Value Creation Commitment to sustainable dividend enforces higher degree of capital discipline and provides predictable return to…
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