Arc Resources — Investor Presentation (February 2016)
76 slides from Arc Resources's investor presentation, February 2016
Slide 1: February Investor Presentation
February Investor Presentation February, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking information as to ARC’s internal projections, expectations or beliefs relating to future events or future performance and includes information as to our future well inventory in our core areas, our exploration and development dril
Slide 3: Corporate Profile
Corporate Profile Corporate Summary Production (Q4 2015) 119,243 boe/day Reserves (2P Gross – YE 2015) (1) 687 MMboe Reserve Life Index (2P) (1) 16 years (2) Monthly Dividend $0.05 per share Annualized Returns (3) Since Inception 15% Market Summary Ticker Symbol TSX: ARX Average Daily Volume 2.2 mil
Slide 4: Unique Strategy
Unique Strategy Risk Managed Value Creation is Central to ARC’s Strategy ARC delivered on its strategy in 2015: • Maintained net debt to funds • Completed Sunrise Gas from operations between Plant and Tower Oil Battery target of 1.0 – 1.5x ahead of schedule • Reduced operating costs and maximized ef
Slide 5: 2015 Highlights
2015 Highlights Year of Strong Performance in All Areas of the Business Full Year Review • Annual average production of 114,170 boe/d (up 2% from 2014) • 190% production replacement adding 78.7 MMboe through the drill bit • 687 MMboe of 2P Reserves (up 2% from 2014) • Funds from Operations of $2.27/
Slide 6: Balance Sheet Strength
Balance Sheet Strength Targeting Net Debt to Funds from Operations 1.0 – 1.5x for the Long Term • During specific times, debt to FFO will trend towards a ratio of two times • Expect debt to FFO to return to target range once normal pricing environment resumes Net Debt to Funds from Operations 1,400
Slide 7: 2016 E&P Leverage Analysis
2016 E&P Leverage Analysis ARC Has One of the Strongest Balance Sheets in the Sector 14.6 x Canadian Benchmarking: 2016E YE Net Debt / 2016E Cash Flow (1)(2) 13.1x 15.8x 8.6 x 7.4 x Group Average 6.9 x 5.8 x 4.5 x 4.3 x 4.3 x 4.2 x 4.0 x 3.7 x 3.6 x 3.5 x 3.4 x 3.4 x 3.1 x 2.8 x 2.8 x 2.8 x 2.7 x 2.
Slide 8: Profitable Investment
Profitable Investment Managing a Profitable Business Through Cycles • ARC’s high-quality assets, excellent capital efficiencies, and low operating costs have resulted in strong returns over the long term • ARC has realized earnings of ~$4 billion since inception • As a result of commodity price weak
Slide 9: Shareholder Value
Shareholder Value ARC’s Share Price Has Demonstrated Less Volatility Than Most of Its Peers Share Price Volality 75% 2011 to 2015 60% 45% Group Average 30% 15% 0% ARC • Source: Scotiabank “The Valuation Book – Valuation, Risk, and Performance: Trauma, Prognosis, Recovery, and Implications – Fourth E
Slide 10: Hedging Program Results
Hedging Program Results Hedging Continues to Smooth Cash Flow Volatility • ARC’s hedging program continues to provide greater certainty of cash flows and supports the business plan 250 Realized Hedging Gains (Losses) 200 Crude Oil Natural Gas Foreign Exchange & Power 150 Total $ millions 100 50 0 (5
Slide 11: Priorities
Priorities 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 from remaining FFO, DRIP/SDP proceeds, and equity proceeds Five Year
Slide 12: Committed to a Dividend
Committed to a Dividend ARC Has Always Paid a Dividend While Delivering Value • 15% annualized total return since inception, ~$5.7 billion of dividends ($32.18/share) • Target is to continue to reduce ARC’s payout ratio to 25-30% 6 120% Cumulative Dividends and Historic Payout Ratio 5 100% Cumulativ
Slide 13: Risk Managed Value Creation
Risk Managed Value Creation Montney Assets Have Delivered Profitable Growth and Value • Quality assets and capital discipline has resulted in ~85% Montney production growth since 2011 140,000 Production Profile 120,000 100,000 boe/day Forecast 80,000 60,000 40,000 20,000 0 Non-Montney Liquids (bbl/d
Slide 14: Reserve Replacement
Reserve Replacement ~200% Reserves Replacement for 8th Consecutive Year • Montney assets have been the centrepiece to ARC’s strategy of organic reserves and resources growth and provide continued upside potential Annual Produced Reserves Replacement 700% Growth through Acquisition Organic Growth 600
Slide 15: Capital Efficiency – Strong F&D Performance
Capital Efficiency – Strong F&D Performance Growing our Montney Business at Low F&D Costs • Low FD&A costs reflect high-quality assets, cost management and allocation of capital to high rate of return projects Three-year Average F&D and FD&A Costs (PDP) (1)(2) 30.00 3.0 (Including FDC) FD&A F&D 25.0
Slide 16: Operating Efficiencies
Operating Efficiencies ARC Continues to Drive Down Operating Costs as It Grows in the Montney • Total per boe operating costs have decreased ~30% (2009 to 2015) • Montney per boe operating costs have decreased ~30% (2009 to 2015) • Owned and operated facilities allow ARC to realize low operating cos
Slide 17: Growing Our Low Cost Gas Business
Growing Our Low Cost Gas Business ~13% CAGR(1) Total Natural Gas Production 2009 – 2016 Forecast • ARC divested of certain non-core, non-Montney shallow gas assets in 2014 and 2015 with associated production of approximately 4,800 boe/day Natural Gas Production 500,000 2009 2015 3,071 Net Gas Wells
Slide 18: 2016 Revised Budget
2016 Revised Budget $390 Million 2016 Capital Budget Sustaining the Business Holding NE BC Facilities at Capacity • Holding Parkland/Tower, Sunrise and Dawson facilities at capacity for 2016 Investing for Future Growth Progressing Construction of Dawson Phase III • Expected to be on-stream in late 2
Slide 19: Sustaining Capital
Sustaining Capital Superb Capital Efficiencies Drive Low Sustaining Capital Requirements ~23,000 boe/day Non-Montney No capital allocated for drilling Corporate/Other (Maintenance, Exploration, $50MM Optimization) Ante Creek Sunrise ~95,000 boe/day $250MM Parkland/Tower (Capital Efficiency: ~$10,000
Slide 20: Proven Development Model
Proven Development Model Inventory of Opportunities at All Stages Allows for Self-Funding and Full Cycle ROCE Growth for Future Phase Development Phase Free Cash Flow Phase • Exploration • Develop to Commercialize • Optimization • Appraisal / Piloting • Exploit • Maintenance • Geographic and Redwate
Slide 21: Montney Assets
Montney Assets
Slide 22: NE BC Montney Growth Assets
NE BC Montney Growth Assets ARC’s NE BC Montney Assets Strategically Located Geographic Optionality TCPL • Proximity of ARC Spectra Montney landbase Alliance enables: TCPL Proposed • Capital & operating efficiencies • Application of learnings across areas Egress Optionality • Dual-connected ARC faci
Slide 23: Montney Development
Montney Development Montney Development Driving Efficiencies and Competitive Cost Structure • $2.8 billion of capital invested in the Montney since 2009 to grow low-cost, high-value Montney production Production Proved + Probable Reserves 120,000 114,167 750 687 100,000 600 80,000 230% 470% boe/day
Slide 24: NE BC Montney Capital Efficiencies
NE BC Montney Capital Efficiencies Forecasting Future Cost and Efficiency Savings in 2016 • ARC continues to incorporate efficiencies realized from its 2014 and 2015 capital programs and expects further service cost reductions in 2016 Dawson – 1,800m Well (1) Parkland – 1,600m Well (1) 7.5 7.5 Down
Slide 25: Multiple Layers to Develop
Multiple Layers to Develop Significant Future Delineation Opportunities 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, Development Potential Horizontal Wells Existing Horizontal Well
Slide 26: NE BC Montney Reserves and Risked Resources
NE BC Montney Reserves and Risked Resources NE BC Montney TPIIP 90 Tcf of Shale Gas and 9.7 Billion Barrels of Oil Shale Gas Tight Oil and NGLs TOTAL PROVED + PROBABLE RESERVES Oil 23 MMbbl 2.6 Tcf NGLs 42 MMbbl ECONOMIC ECONOMIC CONTINGENT CONTINGENT RESOURCE RESOURCE 5.7 Tcf Oil 162 MMbbl DEVELOPM
Slide 27: Early Stages of Property Development
Early Stages of Property Development* Large Identified Opportunity for Future Value Creation • Inclusive of internally identified locations in NEBC and Ante Creek, ~5,000 potential future drilling opportunities exist within the Montney • Pembina area has ~ 600 future drilling opportunities in the Ca
Slide 28: Montney Development Economics
Montney Development Economics Strong Rates of Return Across the Montney Portfolio Dawson Sunrise Parkland Tower Half Cycle Economics C$45/bbl 75% IRR 45% IRR 45% IRR 25% IRR MSW 4.1x Recycle Ratio 4.5x Recycle Ratio 3.6x Recycle Ratio 2.1x Recycle Ratio C$2.50/GJ $1.25/Mcf $1.60/Mcf $1.20/Mcf $30/bb
Slide 29: North American Gas Plays – Supply Costs
North American Gas Plays – Supply Costs Montney is Extremely Competitive Against Other North American Gas Plays Source: RBC Capital Markets “Montney Evolution – Playing the Long Game” (October 2015). • 15% before-tax IRR assumes US$/Cdn$ is 0.83, US$0.75/MMbtu AECO basis, 20:1 liquids to gas ratio.
Slide 30: Tower is Among the Best Oil Plays
Tower is Among the Best Oil Plays Strong Oil Economics at Tower Source: CIBC reports, CIBC World Markets Inc.
Slide 31: Dawson
Dawson Heart of the Montney Low Cost Superior Significant Gas Economics Resource Op Cost $3.06/boe 75% IRR 20.7 Tcf C$45/bbl & C$2.50/GJ of shale gas resource F&D $0.65/Mcf Capital Breakeven Efficiency Price $5,000/boe/day $1.25/Mcf • IRR – Half cycle after-tax rate of return based on Cdn$45/bbl Edm
Slide 32: Dawson – Asset Details
Dawson – Asset Details Poised for Next Stage of Development Net production (boe/d) – Q4 2015 28,720 Liquids (bbl/d) 990 Gas (MMcf/d) 166 Production split % (liquids/gas) ~97% gas Land (Montney net sections) 133 Working Interest ~96% Reserves (2P MMboe) 175 Liquids (MMbbl) 18.4 Gas (Bcf) 938 Reserve
Slide 33: Dawson – “A Cash Flow Machine”
Dawson – “A Cash Flow Machine” Low Reinvestment Ratio to Maintain Significant Free Cash Flow Field Netback ($ millions) Capital Expenditures ($ millions) 250 250 Free Cash Flow ($ millions) 200 Production (MMcfe/day) 200 150 150 Mmcfe/day $ millions 100 100 50 50 0 0 2010 2011 2012 2013 2014 2015 (5
Slide 34: Dawson – Development Potential
Dawson – Development Potential Additional Development Layer Below Core Acreage Dawson Drilling Inventory Upper Montney 500 Upper Montney A Booked Reserves* 400 300 Wells 200 Lower Montney 100 0 Wells Drilled to Drilling YE2015 Opportunities at Lower Montney YE2015 Booked Reserves* Development Unclar
Slide 35: Dawson – Gas Type Curve Growth
Dawson – Gas Type Curve Growth Continuous Improvement in Well Performance 7,000 Key Metrics 2016 Budget 6,000 2015/2016 Type Curve DCET Capex/well ($ millions) 4.2 2013/2014 Type Curve Internal 2P Reserves (Bcfe) 7.4 5,000 2009-2011 Forecast IP (1 mo) (MMcf/day) 6.2 Production Rate (Mcf/day) IP (12
Slide 36: Dawson – Natural Gas Liquids Potential
Dawson – Natural Gas Liquids Potential Finding Higher Liquids With Move Away from Dawson Core • Liquids ratio at Dawson varies across Upper and 40 bbl/MMcf Wellhead Lower Montney 40 bbl/MMcf Condensate Wellhead • Majority of development Condensate to-date focused on the Upper Montney A, which has lo
Slide 37: Dawson – Phase III Plant
Dawson – Phase III Plant Construction at Dawson Phase III Underway • Dawson Phase III Sour Gas Plant with 90 MMcf per day of gas and 7,500 barrels of liquids- handling sales capacity approved by the BC Oil and Gas Commission in September • Design and planning of the plant is ongoing, with procuremen
Slide 38: Dawson – Phase III Project Economics
Dawson – Phase III Project Economics From Well Economics to Project Economics Well Economics • Include drill, completion, wellsite equipment and pipeline from well to gathering system • Standalone after-tax economics*: IRR = 100%, Recycle Ratio = 5.2 Project Economics • Facility, sales line and all
Slide 39: Parkland/Tower
Parkland/Tower Significant Value Creation Strong Growth Exceptional Economics Driver Results 45% IRR (Parkland) 95% Forecast YoY 7 wells with over 100,000 25% IRR (Tower) 2016 liquids growth barrels of cumulative oil C$45/bbl & C$2.50/GJ production in under a year Three Layer Liquids Significant Dev
Slide 40: Parkland/Tower – Asset Details
Parkland/Tower – Asset Details Significant Value Creation Parkland Tower Net production (boe/d) – 15,050 8,700 Q4 2015 Liquids (bbl/d) 2,530 6,700 Gas (MMcf/d) 75 12 Land (net sections) 37 43 Working Interest ~84% ~92% Reserves (2P MMboe) 75 41 Liquids (MMbbl) 12.1 22.9 Gas (Bcf) 378 108 Reserve Lif
Slide 41: Parkland/Tower – Development Potential
Parkland/Tower – Development Potential Incremental Reserves Potential with Multilayer Development Upper Montney A Booked Reserves* Drilling Inventory Upper Montney 750 500 Wells Lower Montney Upper Montney A+ Booked Reserves* 250 0 Wells Drilled to Drilling YE2015 Opportunities at YE2015 Lower Montn
Slide 42: Tower – Cumulative Production
Tower – Cumulative Production Continuous Improvement in Well Performance • Cumulative oil production from nine 2014 wells had surpassed one million barrels in January 2016 Total Production Oil Production 160,000 100,000 5-14 Pad (2014) 5-14 Pad (2014) 8-15 Pad (2014) 8-15 Pad (2014) 140,000 8-24 Pad
Slide 43: Tower – Completions Advancement
Tower – Completions Advancement Advanced Completion Design = Improved Performance 1,400 1,400 Key Metrics 2016 Budget 2014 Type 2016 Curve Type Curve DCET Capex/well ($ millions) 5.5 2015 Type Curve 1,200 1,200 2015 Type Curve Internal 2P Reserves (Mboe) 600 2016 Type Curve 2014 Type Curve (boe/day)
Slide 44: Tower – Drilling Curves
Tower – Drilling Curves ~25% Reduction in Drill Times = ~30% Cost Savings at Tower Pads 0 12-16 Best Well • 30% cost savings and 25% 8-24 Pad Average reduction in drilling time over previous Tower pads 500 12-16 Pad Average (Horizon 50) Industry Offset 1 • Realizing reduced drill days and 1,000 Indu
Slide 45: Sunrise
Sunrise Long-term Growth Opportunity Significant Strong Four Layer Resource Economics Development 8.3 Tcf 45% IRR Currently producing of shale gas resource C$45/bbl & from all four layers C$2.50/GJ 2015 Growth Breakeven Low Cost Driver Price Gas New 60 MMcf/day $1.60/Mcf Op Cost $0.50/Mcf facility o
Slide 46: Sunrise – Asset Details
Sunrise – Asset Details Sunrise Has Progressed from Pilot to Full Scale Development Net production (boe/d) – Q4 2015 20,690 Liquids (bbl/d) 150 Gas (MMcf/d) 123 Land (Montney net sections) 32 Working Interest ~89% Reserves (2P MMboe) 169 Liquids (MMbbl) 2.3 Gas (Bcf) 998 Reserve Life Index (years) 2
Slide 47: Sunrise – Development Potential
Sunrise – Development Potential Proven Productivity from Four-Layered Development Drilling Inventory 400 Upper Montney A Booked Reserves* Upper 300 Montney 200 Wells Upper Montney A+ Booked Reserves* 100 Upper Montney B 0 Booked Reserves* Wells Drilled to Drilling Lower YE2015 Opportunities at Montn
Slide 48: Sunrise – Outperforming Expectations
Sunrise – Outperforming Expectations Drilling Results Continue to Reaffirm Four-Layer Development Model 2015/16 Upper MTY Type Curve (11.7 Bcf) 10,000 02-26-78-18 W6 (08-24Hz) Upper MTYA 9,000 00/16-35-78-18 W6 (A13-30) Upper MTYA 15-23-78-18 (C09-13Hz) Lower MTYA+ 8,000 02/14-26-78-18 W6 (B02-25Hz)
Slide 49: Sunrise – Continuous Improvements
Sunrise – Continuous Improvements Enhanced Well Design = Type Curve Improvement 7,000 2014-16 Type Curve (11.5 Bcf) Key Metrics 2016 Type Curve 6,000 2013 Type Curve (11 Bcf) DCET Capex/well ($ millions) 5.4 2011 Type Curve (7 Bcf) Internal 2P Reserves (Bcfe) 11.5 5,000 IP (1 mo) (MMcf/day) 6.2 Gas
Slide 50: Sunrise – Phase II Project Economics
Sunrise – Phase II Project Economics From Well Economics to Project Economics Well Economics • Include drill, completion, wellsite equipment and pipeline from well to gathering system • Standalone after-tax economics*: IRR = 60%, Recycle Ratio = 5.6 Project Economics • Facility, sales line and all a
Slide 51: Sunrise – 2015 Drilling Performance
Sunrise – 2015 Drilling Performance Strong Performance at Sunrise from 2015 Drills • 12-30 Pad wells are flowing at higher bottomhole flowing pressures than had been forecast • As wells are rate-restricted (i.e., held at a constant production), the decline is seen in the bottomhole flowing pressure
Slide 52: Sunrise – Drilling Curves
Sunrise – Drilling Curves ~35% Reduction in Drill Times = ~40% Cost Savings on Sunrise Pads 0 • Realizing reduced drill days and 12-30 Pad Average (Q1 2015) cost savings during the year from 500 G2-25-78-18 (Q4 2015) re-engineered well design including H2-25-78-18 (Q4 2015) an introduction of a new
Slide 53: Attachie – Asset Details
Attachie – Asset Details Highly Prospective Asset With Strong Liquids Potential Net production (boe/d) – Q4 2015 460 Liquids (bbl/d) 260 Gas (MMcf/d) 1.2 Land (Montney net sections) 279 Working Interest ~100% Reserves (2P MMboe) 14 Liquids (MMbbl) 6.2 Gas (Bcf) 49 Reserve Life Index (years) 68 2016
Slide 54: Attachie – Pilots
Attachie – Pilots Continued Evaluation on Liquids-Rich Land • Two pilot horizontal wells on western side of lands have produced 1.4 Bcf of gas and 130 Mbbl of liquids in 18 months • NGLs yield up to 25 bbl/MMcf dependent on plant design; free condensate gas ratio of 50-150 bbl/MMcf • Acquired 89 net
Slide 55: Greater Dawson – Lower Montney Fairway
Greater Dawson – Lower Montney Fairway Building Understanding of the Lower Montney Fairway Parkland 11-36 Pouce 1-15 Dawson 1-17 Dawson 8-1 Sunrise C2-25 Sunrise B8-24 • Only Lower Montney wells are displayed.
Slide 56: Summary
SUMMARY CANE
Slide 57: Looking Beyond 2016
Looking Beyond 2016 Diverse Portfolio Provides Strategic Optionality • ARC has a well-balanced inventory of value creating opportunities which may be pursued beyond 2016 140,000 Production Profile Project Options 2016 - 2020+ 120,000 • Dawson Phase III 100,000 • Pouce Commercialization ForecastForec
Slide 58: Appendix
APPENDIX
Slide 59: Q4 2015 Operational and Financial Performance
Q4 2015 Operational and Financial Performance Strong Production and Financial Results Three Months Ended Year Ended December 31 December 31 (Cdn$ millions, except per share and per boe amounts) 2015 2014 2015 2014 Production (boe/d) 119,243 117,986 114,167 112,387 Natural Gas 66% 61% 65% 60% Oil & L
Slide 60: 2015 and 2016 Guidance
2015 and 2016 Guidance Focused on Value Creation 2016 Original 2016 Revised Guidance (1) Guidance (1) 2015 Guidance (2) 2015 Actuals Oil (bbl/day) 34,500 - 36,500 32,000 - 34,000 33,500 - 34,500 32,762 Condensate (bbl/day) 3,200 - 3,600 3,000 - 3,400 3,400 - 3,800 3,430 Gas (MMcf/day) 465 - 475 460
Slide 61: Hedge Positions – February 10, 2016
Hedge Positions – February 10, 2016 Summary of Hedge Positions as at February 10, 2016 (1) 2016 2017 2018 2019 2020 (2) Crude Oil – Cdn$ WTI Cdn$/bbl bbl/day Cdn$/bbl bbl/day Cdn$/bbl bbl/day Cdn$/bbl bbl/day Cdn$/bbl bbl/day Ceiling 83.38 3,000 83.38 1,488 - - - - - - Floor 70.00 3,000 70.00 1,488
Slide 62: Significant Liquidity
Significant Liquidity ARC Continues to Maintain Ample Liquidity $2.5 Billion Total Cash & Existing Credit Capacity ($1.4 Billion Available) Bank Credit Facility Cash • $1 billion credit facility plus $40 million $167MM working capital facility Undrawn Master Shelf • Currently undrawn $195MM Long-ter
Slide 63: Natural Gas – Commodity Marketing
Natural Gas – Commodity Marketing Diversified Sales Points and Purchasers of ARC’s Natural Gas • Secured firm transportation pipeline agreements to support existing production and future development until 2019 • ~50% of Station 2 exposure mitigated in 2016 through physical diversification and basis
Slide 64: Crude Oil – Commodity Marketing
Crude Oil – Commodity Marketing Focused on Condensate, Light and Medium Crude Oil • Secured firm transportation pipeline agreements to support existing production and future development • Maintain control into liquid market hubs to ensure flexibility and optimize price Purchasers BRITISH 31% COLUMBI
Slide 65: NGLs – Commodity Marketing
NGLs – Commodity Marketing NGLs Pipeline & Fractionation Capacity Secured ARC’s NGLs Exposure NGLs Pricing • NGLs revenue (4,000 bbl/day) • North American NGLs supply growth makes up 1% of ARC’s revenue continues to put downward pressure on • Ensuring NGLs production moves Canadian propane and butan
Slide 66: Key Reserve Information
Key Reserve Information 687 MMboe 2P Reserves at Year-End 2015 YE 2015 2P Reserves Reserves at year end, December 31, 2015 - Proved Producing 222 MMboe - Total Proved 393 MMboe PDP 32% - Proved Plus Probable 687 MMboe Probable 43% - 2P Reserve Life Index 16 years (1) PNP 2P Reserves PUD 2% 800 23% N
Slide 67: NE BC Montney Schematic
NE BC Montney Schematic Multiple Layers, Multiple Targets, Massive Opportunity • Not to scale.
Slide 68: Growing Oil and Liquids Since 2009
Growing Oil and Liquids Since 2009 ~4% CAGR(1) Total Liquids Production 2009 – 2016 Forecast • ARC continues to invest in long-term strategic oil and liquids assets 50,000 Oil and Liquids Production 45,000 Dawson, Parkland 40,000 Tower 35,000 Ante Creek Montney Liquids 30,000 45% CAGR 2009- 2016F bb
Slide 69: Tower – Wells Deliver Outstanding Results
Tower – Wells Deliver Outstanding Results ARC’s Tower Wells Are Some of the Best in Western Canada Cumulative Production Increasing Majority of wells never produce 100,000 barrels Days on Production Increasing Source: AltaCorp Research (October 2015).
Slide 70: Strategic Montney Infrastructure
Strategic Montney Infrastructure Building Montney Infrastructure to Support Resource Development Parkland Gas Plant On-Stream 2013 Tower Battery November 2015 Dawson Gas Plant Phase I: On-Stream 2010 Phase II: On-Stream 2011 Dawson Ante Creek Gas Plant Phase III Commissioned 2012 Coming 2017 Sunrise
Slide 71: Greater Dawson – Montney Pilots
Greater Dawson – Montney Pilots Proving Future Value Before Full-Scale Development Septimus Pouce Coupe Pilot production Lower Montney on-stream since pilot production Q2 2014 on-stream since late 2013 Parkland Dawson Lower Montney Two Lower well on-stream Montney wells since Q3 2014 drilled in Q4 2
Slide 72: Reserves and Resources Disclosure
Reserves and Resources Disclosure • All reserves and resources volumes for NE BC Montney and elsewhere in this presentation are, unless indicated otherwise, as at December 31, 2015 as evaluated by GLJ Petroleum Consultants Ltd. in accordance with the definitions, standards and procedures contained i
Slide 73: Definitions of Oil and Gas Reserves and Resources
Definitions of Oil and Gas Reserves and Resources Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical and engineering data; the
Slide 74: Definitions of Oil and Gas Reserves and Resources
Definitions of Oil and Gas Reserves and Resources Project Maturity Subclass Development Unclarified as a contingent resources that requires further appraisal to clarify the potential for development and has been assigned a lower chance of development until contingencies can be clearly defined. Undis
Slide 75: NE BC Montney Reserves and Risked Resources
NE BC Montney Reserves and Risked Resources Amendments to Disclosure of Resource Evaluation • Amendments to NI 51-101 came into effect July, 2015 that require changes to the way resources are disclosed • Key changes that impact ARC include: • Changes to product types – additional product types that
Slide 76: 1200, 308 – 4 Avenue S.W.
This presentation contains forward-looking statements that may be identified by words like “outlook”, “estimates” and similar expressions. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance.
ARC Resources — Investor Presentation (February 2016) on 6ix