Slide 1: ARC Resources Ltd. Investor Presentation
ARC Resources Ltd. Investor Presentation Photo Caption copy area Q3 2025
Slide 2: Corporate Profile
Corporate Profile Premium investment opportunity for Montney exposure, one of the most profitable assets in North America Shares outstanding 1 583 million BC & Alberta Montney Producers 450 2 Market capitalization $15.6 billion 400 Liquids (MB/d) Kakwa Acquisition6 (2025E) 34 350 Attachie Phase I (2
Slide 3: Transformation to the Largest Montney Producer
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 >1.1 million Montney acres Swan Hills Ante Creek Ante Redwater Cr
Slide 4: Investment Case for ARC
Investment Case for ARC World-class Assets Free Funds Flow Per Share1 2 3 Growth 5.00 • Canada's largest Montney & condensate producer • Capability to grow >500 Mboe/d and sustain for greater than 10 years 4.00 Commitment to Shareholder Returns 3.00 • Clear strategy to triple free funds flow per sha
Slide 5: 2025 Capital Budget
2025 Capital Budget
Slide 6: 2025 Guidance – Production & Expenses
2025 Guidance – Production & Expenses 2025 Revised 2025 Production Guidance1 Guidance Crude oil and condensate (bbl/day) 104,000 - 110,000 107,000 - 112,000 Natural gas (MMcf/day) 1,400 – 1,420 1,390 – 1,420 NGLs (bbl/day) 42,000 - 48,000 43,000 - 48,000 Total production (boe/day) 380,000 - 395,000
Slide 7: 2025 Revised Guidance – Production
2025 Revised Guidance – Production 2025 Production Guidance 2025 Crude Oil & Condensate Guidance Boe/day B/day 115,000 425,000 400,000 ~18,000 ~ 5,000 110,000 385,000 – 107,000 – 380,000 – 395,000 112,000 395,000 ~5,000 375,000 ~8,000 104,000 – 110,000 105,000 ~ 2,000 350,000 325,000 100,000 2025 Or
Slide 8: 2025 Guidance – Capital Expenditures & Production
2025 Guidance – Capital Expenditures & Production Attachie(1) $425MM - 475MM Ante Creek ~24 wells 33,000 boe/day ~$80MM (H2/25 35-40,000 boe/d) ~13 wells ~20,000 boe/day Greater Dawson Kakwa ~$195MM ~21 wells $950MM – 1,000MM ~95,000 boe/day ~81 wells ~190,000 boe/day Sunrise ~$70MM ~5 wells ~53,000
Slide 9: Long-term Plan
Dawson III & IV, BC Long-term Plan
Slide 10: Long-term Outlook Delivers Significant Value
Long-term Outlook Delivers Significant Value Disciplined plan to grow free funds flow per share1 2 Boe/day Base Production 500,000 Attachie I ~315% Attachie II 450,000 Free Funds Flow4 Per Share Growth 400,000 (~40% CAGR4) 350,000 300,000 $5.00 2024 2025 2026 2027 2028 $8,000 ~15% CAGR Free Funds Fl
Slide 11: Global Leader in Low-cost Energy Development
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% Future natural gas production linked to international pricing1 11 1) First LNG contract to receive international pricing expect
Slide 12: Capital Allocation
Kakwa, AB Capital Allocation
Slide 13: Track Record of Capital Discipline
Track Record of Capital Discipline A disciplined investment framework fundamental to profitable growth Return on Average Capital Employed1 2 3 40% 30% Average 12% 20% 10% 0% -10% -20% 13 1) Non-GAAP Financial Measure — see "Non-GAAP and Other Financial Measures" in the Advisory Statements of this pr
Slide 14: Long-term Outlook
Long-term Outlook Disciplined investment drives free funds flow per share growth $ millions Capital Expenditures1 2 3 $ millions Free Funds Flow2 3 2,500 2,000 WTI US$50/B; AECO C$2.50/GJ 3,000 WTI US$70/B; AECO C$3.50/GJ 1,500 WTI US$80/B; AECO C$4.50/GJ 1,000 ~$10 billion 2,500 Cumulative 500 Free
Slide 15: Return of Capital Strategy
Return of Capital Strategy Balancing sustainable dividend growth with share repurchases $1.20 Shares (millions) 800 >10% Dividend Per Share Growth CAGR22 3 4 Dividend per share Dividend payout ratio Outstanding shares 750 ~15% $1.00 700 650 Dividend Payout Ratio3 $0.80 (% of FFO) 600 Sustainable $0.
Slide 16: Asset Portfolio Overview
Parkland, BC Asset Portfolio Overview
Slide 17: Montney Overview
Montney Overview ARC’s competitive advantage in a world-class asset >4,800 Drilling locations >20 years High-quality inventory ~300 metres Thickness ~1.9 Bcf/d ~200 Mbbl/d Owned-and-operated infrastructure 17
Slide 18: Montney Outcompetes North America Plays
Montney Outcompetes North America Plays Low-cost and deep inventory relative to North American shale plays 18 1) Turn-in line (TILs)
Slide 19: North American Oil Inventory
North American Oil Inventory Large inventory runway relative to North American oil-weighted shale plays Inventory Life by Breakeven 27.50 NA Onshore Inventory Life at NTM Activity Cadence (Years) 25.00 22.50 20.00 17.50 15.00 12.50 10.00 7.50 5.00 2.50 - PR SM CIVI BTE ARX NVA DVN HPK COP FANG INR N
Slide 20: Attachie Break-evens
Attachie Break-evens Attachie break-evens rank among the lowest in North America Source | Enverus Intelligence Research Note | L48 Plays include the Delaware, Permian (Delaware, Midland), Scoop|Stack, Eagle Ford, DJ, Williston Basin, Powder River, Uinta 20
Slide 21: Montney Inventory
Montney Inventory ARC has a deep Montney inventory at the low end of the cost curve C$/Mcf Supply Cost of Inventory by Property1 2 3.50 3.00 ~50% Gas AT NPV10 Supply Cost (CAD$/Mcf) of total inventory has a supply cost 2.50 below C$0/Mcf 2.00 1.50 1.00 0.50 0.00 0 500 1,000 1,500 2,000 2,500 3,000 3
Slide 22: Montney – Track Record of Execution
Montney – Track Record of Execution Early movers to consolidate asset base at a low cost and deliver sustained profitable growth Boe per day 2025 2028 480,000 Montney Crude Oil & Liquids (bbl/d) Kakwa Acquisition Attachie Phase II Montney Natural Gas (boe/d) 2021 420,000 ARC acquires Seven Generatio
Slide 23: Large Network of Owned-and-operated Infrastructure
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 ~1.9 Bcf/d 25 Mbbl/day processing capacity Dawson ~200 Mbbl/d 300 MMcf/day 20 Mbbl/day Sunrise
Slide 24: Kakwa Overview
Kakwa Overview Liquids-rich asset offering a long runway of development Largest condensate asset in Canada Resource to sustain production at 200,000 - 210,000 Gold Creek Plant SCALE boe/d for the next 15 years Kakwa lands Acquired lands Recent acquisition consolidates core area Cutbank Plant • $1.6
Slide 25: Kakwa Production Performance
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 complete as of 2023, allowing for return to orderly field development 15 1
Slide 26: Dawson Overview
Dawson Overview Flagship asset delivering superior free funds flow2 with a long inventory runway >1 Tcf Natural Gas Produced Developed (36%) Undeveloped (61%) SCALE UMA 61% Undeveloped Dawson Phase III & IV 2023-28 Asset Level Outlook ECONOMICS Dawson $1.8 billion of asset level free funds flow2 Pha
Slide 27: Sunrise Overview
Sunrise Overview Scale and low-cost – the key ingredients to supply West Coast LNG Highly efficient EFFICIENT Developed (43%) dry natural gas play due to stacked development layers Undeveloped (57%) UMA Interconnected to Coastal GasLink to move gas volumes to West Coast LNG Lower Sustaining Capital
Slide 28: Attachie
Attachie, BC Attachie
Slide 29: Attachie Overview
Attachie Overview Scalable condensate-rich Montney development Scale for Multi-phase Development SCALE 360 net sections in condensate-rich Montney Liquids sales to UMA Overpressured liquids-rich resource Pembina Recent development agreement with TDZE LMA increases land position by >10% Consolidated
Slide 30: TDZE Agreement Lands
TDZE Agreement Lands Development agreement increases ARC’s Attachie land position by >10% to 360 sections • Land is located directly adjacent to ARC’s Attachie development in the condensate-rich region of the Montney • Resource quality is comparable to existing Attachie development • Extends condens
Slide 31: Attachie Phase I Production Update
Attachie Phase I Production Update Confidence in subsurface and facility performance underpins production outlook 40,000 Production (boe/ % Date day) Liquids 35,000 Q1 2025 31,085 60% • Q2 2025 production Q2 2025 26,800 60% averaged 26,833 boe per H2/2025E 35,000 -40,000 ~60% 30,000 day (60% cond
Slide 32: Integrated Workflow Identifying Opportunities
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)1, 2 240 2018 results (150 m interwell, 2 T/m) 200 160 Type Curve Economics 1
Slide 33: LNG & Marketing Strategy
Sunrise, BC LNG & Marketing Strategy
Slide 34: Condensate Market Overview and Outlook
Condensate Market Overview and Outlook WCSB condensate remains a structurally short market, reliant on imports to satisfy demand 2024 Canadian Oil 2024 WCSB Sands Production Blending Demand 520 Mbbl/d 785 Mbbl/d WCSB Condensate Balances Forecast ~250 Mbbl/d of imports required to meet projected dema
Slide 35: Natural Gas Marketing Strategy
Natural Gas Marketing Strategy Portfolio with well-diversified global price exposure is driving strong realizations 123 Natural Gas Financial Exposure ARC’s Current Natural Gas Portfolio 12% 8% 11% 14% 26% 15% 14% 12% 12% 10% 2% 11% 13% 12% 12% 10% 9% 111% 22% 12% 22% 9% 22% 17% 15% 14% 24% 25% 32%
Slide 36: LNG Economics and Agreements
LNG Economics and Agreements Long-term supply agreements to diversify and access global natural gas pricing LNG Revenue Enhancement Sensitivity Long-term Agreements $10 JKM/TTF 1 Shell Cheniere Cheniere $1,200 1 600 (40% $12 JKM/TTF Corpus Sabine Pass Cedar LNG/ interest in Christi Stage Liquefactio
Slide 37: Appendix
Ante Creek, AB Appendix
Slide 38: Asset Level Inventory
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 15 – 20 Greater Dawson Greater Dawson 90 – 100 Kakwa Kakwa 200 – 210 S
Slide 39: Reserves Replacement
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 2024 39 1) See "Information Regarding Disclosure on Crude Oil and Natural G
Slide 40: Montney Scale & Inventory
Montney Scale & Inventory Consistent reserves per share growth ~75% of ARC’s drilling inventory is unbooked locations Reserves (boe per share) Drilling locations 4,000 4.00 PDP TP 2P ~3,8001 3,000 3.00 2,000 2.00 ~1,100 1.00 1,000 - - 2022 2023 2024 Booked Locations Unbooked Locations 40 ARC’s $41 p
Slide 41: Financial Strength
Financial Strength Strong financial position has been a foundation of ARC for 29 years 2025 forecasted net debt sensitivities1 2 Long-term notes repayment schedule1 $ billions, ratio Cdn$ millions 3.0 1.5x 600 2.5 450 2.0 1.0x 1.5 300 1.0 0.5x 150 0.5 0.0 0.0x 0 US$50/bbl WTI & US$60/bbl WTI & US$80
Slide 42: Greater Kakwa Montney Operational Excellence
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) 1 2,500 2,000 300 1,500 250 1,000 500 200 - ARC 150 m/day 1,500 Co
Slide 43: NEBC Montney Operational Excellence
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) 1 2 2,000 m/day 1,500 700 1,000 600 500 500 0 400 ARC Completions Efficiency 3
Slide 44: BC Landscape
BC Landscape • 100% of ARC’s 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 from disturbance caps in ‘PNG Area A’ at this time • ARC’s produci
Slide 45: Attachie Montney Subsurface Overview
Attachie Montney Subsurface Overview High-quality reservoir throughout ARC’s lands Upper Montney reservoir thickness is consistent moving from west to east across Attachie Lower Montney reservoir thickness increases to the north Map depicts net pay times porosity, a fundamental view for reservoir qu
Slide 46: Natural Gas Price Realization – Benchmarking
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 $0.00 2018 2019 2020 2021 2022 2023 2024 2025E AECO ARX ARC has realized an average premium to AECO of 25%
Slide 47: U.S. Natural Gas Market Outlook
U.S. Natural Gas Market Outlook Rising export demand requires ~15 Bcf/d of supply growth by 2030, a significant amount must be supplied by dry gas basins 20 U.S. Natural Gas Outlook: Full-Year 2030 vs. Full-Year 2024 15 Bcf/d 10 Call-on Dry Gas Max associated gas growth 5 potential via new (FID'd) e
Slide 48: WCSB Natural Gas Market Outlook
WCSB Natural Gas Market Outlook WCSB demand projections suggest >3.5 Bcf/d of incremental production is required by 2029 WCSB Natural Gas Outlook WCSB LNG Export Capacity Buildout 8 Ksi Lisims 7 LNG Canada Ph. 2 7 Cedar LNG 6 Woodfibre 6 5 LNG Canada Ph. 1 5 Operational 4 Bcf/d 4 Bcf/d 3 3 2 2 1 1 0
Slide 49: Risk Management Contracts Positions
Risk Management Contracts Positions ARC’s long-term focus is to reduce downside risk and create certainty in cash flows 1 As at June 30, 2025 2025 (remainder) 2026 2027 2028 2029 Crude Oil – WTI US$/bbl bbl/day US$/bbl bbl/day US$/bbl bbl/day US$/bbl bbl/day US$/bbl bbl/day Ceiling 82.99 25,000 81.1
Slide 50: ESG Ratings and Rankings
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
Slide 51: Advisory Statements
Advisory Statements
Slide 52: Advisory Statements
Advisory Statements Notes Regarding Forward-looking Information This presentation contains certain forward-looking information within the meaning of applicable Canadian securities laws regarding ARC's current expectations of possible events, conditions or financial performance that are based on cert
Slide 53: 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 ARC's shares (including the actual amount, the declaration date,
Slide 54: Advisory Statements
Advisory Statements Basis of Preparation All financial figures and information have been prepared in Canadian dollars (which includes references to "dollars" and "quot;), except where another currency has been indicated, and in accordance with International Financial Reporting Standards ("IFRS" or "GAA
Slide 55: Advisory Statements
Advisory Statements Non-GAAP Financial Measures Capital Expenditures ARC uses capital expenditures to measure its capital investment level compared to the Company's annual budgeted capital expenditures. ARC's budgeted capital expenditures exclude any acquisition or disposition activities as well as
Slide 56: Advisory Statements
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 that netback per boe is a key industry performance measure of operatio
Slide 57: Advisory Statements
Advisory Statements Supplementary Financial Measures "Average realized natural gas price" is comprised of natural gas commodity sales from production, as determined in accordance with IFRS, divided by the Company's natural gas production. "Before-tax 2P NPV per share" is comprised of the before-tax
Slide 58: Advisory Statements
Advisory Statements Information Regarding Disclosure on Crude Oil and Natural Gas Reserves and Operational Information In accordance with Canadian practice, production volumes and revenues are reported on a company gross basis, before deduction of Crown and other royalties, and without including any
Slide 59: Advisory Statements
Advisory Statements Advisory – Credit Ratings Credit ratings are intended to provide investors with an independent measure of credit quality of an issue of securities. Credit ratings are not recommendations to purchase, hold, or sell securities and do not address the market price or suitability of a
Slide 60: Investor Relations Contacts
Investor Relations Contacts Dale Lewko General Investor Relations Enquiries Manager, Capital Markets 403.503.8600 403.503.8696 1.888.272.4900 DLewko@arcresources.com IR@arcresources.com