ARC Resources is a leading conventional oil and gas company with a focused asset base in western Canada. Operations are focused in the Montney region in Alberta and northeast British Columbia, and the Pembina Cardium region in Alberta. 

ARC pays a monthly dividend to shareholders and its common shares trade on the Toronto Stock Exchange under the symbol ARX.

Production and reserves
Average daily production for 2019 was a record 139,126 barrels of oil equivalent ("boe") per day, and ARC replaced 164 per cent of 2019 production, adding 83 MMboe of proved plus probable ("2P") reserves through development activities to total 910 MMboe, which included replacing 198 per cent of 2019 oil and NGLs production and 153 per cent of 2019 natural gas production. ARC added 65 MMboe of proved producing ("PDP") reserves through development activities to total 258 MMboe.

ARC's production for the three months ended December 31, 2019 averaged 147,650 boe per day, comprised of 17,083 barrels per day of crude oil, 10,937 barrels per day of condensate, 8,123 barrels per day of NGLs, and 669 MMcf per day of natural gas.

Outlook

ARC expects to deliver production of between 158,000 boe/day and 165,000 boe/day, of which approximately 80 per cent is low-cost natural gas production.

• 2021 will be focused on maximizing the generation of surplus funds from operations. ARC forecasts a payout ratio of approximately 70 per cent, after capital expenditures and dividend.
• Approximately 80 per cent of the capital budget will be directed at profitable half-cycle investments to sustain production at ARC’s core Montney properties (Dawson, Sunrise, Parkland/Tower, and Ante Creek).
• ARC will complete two minor infrastructure optimization projects at Sunrise and Parkland for a combined $41 million to add about 46 MMcf/day of additional natural gas processing and sales capacity.
• ESG will continue to be a focal point in 2021, with $7 million being directed at initial investments for electrification at the Dawson Phase III & IV and Attachie West Phase I facilities, as well as a few other small, emissions-reducing projects.
• Operating expense is expected to be in the range of $4.00/boe to $4.50/boe, which is relatively flat compared to 2020. Discretionary maintenance activities that had been deferred in 2020 are expected to be completed in 2021.

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