Arc Resources Ltd.

Arc Resources — Investor Presentation (April 2013)

75 slides from Arc Resources's investor presentation, April 2013

  1. Slide 1: ARC Resources Investor Presentation April 2013

    ARC Resources Investor Presentation April, 2013

  2. 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

  3. Slide 3: Corporate Overview

    CORPORATE OVERVIEW Production (2012 Annual) 93,500 boed Liquids 36,400 boed Natural gas 343 mmcfd Reserves (2P Gross) 607 mmboe Crude Oil 17.5 year RLI (1) NE BC/ NW AB Liquids-rich Gas Dry Gas Current monthly dividend $0.10 NORTH AB Annualized total return REDWATER Since Inception 18% (2) Since Jan

  4. Slide 4: Value Proposition

    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 • At ARC our focus since inception has been on “Risk Manag

  5. Slide 5: Risk Managed Value Creation: Production Growth

    RISK MANAGED VALUE CREATION PRODUCTION GROWTH 140,000 Production Growth – Montney and Non-Montney 120,000 100,000 Total Non-Montney production Forecast Forecast Production (boe/d) 80,000 Montney Gas (boe/d) Montney Oil/Liquids (bbls/d) Non-Montney Gas (boe/d) 60,000 Non-Montney Liquids (boe/d) 40,00

  6. Slide 6: Income and Growth

    INCOME AND GROWTH ARC HAS DELIVERED BOTH • ARC has a 16 year history of risk managed value creation - Provided an 18% annual total return since inception - Paid out $4.6 billion in total dividends - $28.88/share - Grown absolute production from 9,500 boe/d to ~95,000 boe/d, – the Montney provides th

  7. Slide 7: Per Share Growth

    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 0.50 3.0 0.45 2.5 0.40 0.35 2.0 0.30 0.25 1.5 0.20 1.0 0.15 0.10 0.5 Normalized per thousand s

  8. Slide 8: Reserve Replacement in 2012

    200 PER CENT RESERVE REPLACEMENT IN 2012 • 2012 is the fifth consecutive year of greater than 200% reserve replacement • Increase in 2P reserves of 6% to 607 mmboe • Replaced 214% of crude oil and liquids reserves, increasing 9% to 186 mmbbls • Reserves have more than doubled over the past five year

  9. Slide 9: Capital Efficiency

    CAPITAL EFFICIENCY EXCELLENT FD&A PERFORMANCE IN 2012 • Replaced 200% of production at an all in FD&A cost of $9.34/boe(1) • 2012 recycle ratio of 2.7 times based on F&D of $9.01/boe(1) and pre-hedging netback of $24.17/boe • Three year FD&A of $7.80 before FDC FD&A Costs and Recycle Ratio(1) (2) $2

  10. Slide 10: Sustainable Dividend

    SUSTAINABLE DIVIDEND $4.6 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 balance sheet strength Historic Dividends and Funds from Oper

  11. Slide 11: Focus on Oil and Liquids

    FOCUS ON OIL AND LIQUIDS 15% OIL AND LIQUIDS PRODUCTION GROWTH IN 2012 • Focus on crude oil and liquids development resulted in 15% growth in crude oil and liquids production to ~36,400 boe/d in 2012 primarily at Ante Creek, Pembina and Goodlands • Crude oil and liquids comprised 39% of total 2012 p

  12. Slide 12: Our Strategy

    OUR STRATEGY RISK MANAGED VALUE CREATION Understand our Advantaged Position Leverage our Advantaged Position Make time to Think Strategically Financial Operational Flexibility Excellence RISK MANAGED VALUE CREATION High Quality, Top Talent Long Life and Strong Assets Leadership Culture Be Dynamic an

  13. Slide 13: Strategic Overview

    STRATEGIC OVERVIEW SUMMARY • ARC’s strategy has delivered exceptional results to date – We will continue to provide income and profitable growth to our investors • Where do we go from here? – Continued focus on meaningful oil and gas accumulations – Our strategic initiatives will focus on: • Operati

  14. Slide 14: Reserves and Resources

    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 definitions of oil and gas reserves and resources found at the en

  15. Slide 15: NE B.C. Montney: Vast Resource Base

    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 Pouce Coupe located in northwestern Alberta (collectively, the "

  16. Slide 16: Key Reserve Information

    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 mmbbls liquids, 2.5 Tcf gas) 700 18% CAGR 600 Probable Proved Pro

  17. Slide 17: Montney Growth Assets: Reserves and Resources

    MONTNEY GROWTH ASSETS RESERVES AND RESOURCES • Independent Resources Evaluation conducted by GLJ effective December 31, 2012 • In addition to the 50.1 Tcf of natural gas resource, an oil resource of 1.5 billion barrels was identified at Tower • The amount of natural gas and liquids ultimately recove

  18. Slide 18: Montney Growth Assets: Reserves and Resources

    MONTNEY GROWTH ASSETS RESERVES AND RESOURCES 2012 Best 2011 Best Reserves and Economic Contingent Resources (1)(2) Estimate Estimate Natural Gas (Tcf) Reserves (3) 2.1 1.9 Economic Contingent Resources 4.2 4.1 Natural Gas Liquids (mmbbls) (4) Reserves (3) 24.7 21.1 Economic Contingent Resources 111.

  19. Slide 19: 2013 Budget

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  20. Slide 20: 2013 Capital Program

    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. NE BC - $324MM(1) ~36 grossNE operated wells 2013 Capital Budget BC (2) - $324MM* ~44,500 boe/d

  21. Slide 21: 2013 Budget

    2013 BUDGET 2013/2014 Production Growth 2013 Budget - Volumes (BOED) All Properties PO DEV OPT EXPLORE 140,000 2014 base production, does not show 2014 CAPEX program 120,000 100,000 80,000 Base Decline ~22% Base Base Decline Decline ~22% ~22% 60,000 40,000 • Overall Corporate base decline of ~ 22%.

  22. Slide 22: Asset Overview

    Asset Overview

  23. Slide 23: Asset Overview

    ASSET OVERVIEW • ARC’s key assets with the greatest value creation opportunities and highest future reserves contributions are: Montney Growth Assets • Ante Creek – oil resource play • Parkland/Tower– oil and liquids-rich gas resource play • Dawson – natural gas resource play • West Montney – liquid

  24. Slide 24: Asset Overview: Western Canada

    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 Oil • Weyburn • Jenner • Midale • Goodlands Lougheed •

  25. Slide 25: Ante Creek: A Montney Oil Success Story

    Ante Creek A Montney Oil Success Story

  26. Slide 26: Ante Creek Asset Details

    ANTE CREEK ASSET DETAILS Net production (boe/d) – Q4 2012 10,300 Liquids (bbls/d) 5,100 Gas (mmcf/d) 32 Production split % (liquids/gas) ~50/50 Land (Montney net sections) 267 Working Interest ~99% 10-07 Gas Plant Reserves (2P mmboe) 47.7 Liquids (mmbbls) 20.9 Gas (bcf) 160 10-36 Gas Plant Reserve L

  27. Slide 27: Ante Creek Oil – Operational Excellence

    ANTE CREEK OIL – OPERATIONAL EXCELLENCE INDUSTRY LEADING CAPITAL EFFICIENCY • ARC’s Ante Creek/Kaybob Montney drill and complete costs are <75% of industry average. • ARC $3.8 MM per well vs. Industry $5.3 MM per well (1) • ARC’s Ante Creek average 30 day IP rate in the Ante Creek/Kaybob area is com

  28. Slide 28: Ante Creek Montney Development Economics

    ANTE CREEK MONTNEY DEVELOPMENT ECONOMICS 450 Key Metrics DCET Capex per well ($MM) 4.0 400 Reserves per well (Mboe) 283 IP (1 mo) (boe/d) 400 350 IP (12 mo) (boe/d) 245 Economics ($85/bbl) $4/GJ $3/GJ 300 IRR (% AT) 45% 35% Recycle Ratio 2.1 2.0 250 BOE/D 200 150 100 50 0 0 6 12 18 24 30 36 Months •

  29. Slide 29: Ante Creek 2013 Budget

    ANTE CREEK 2013 BUDGET – $186MM OPERATED 2013 Budget - Volumes (BOED) Operated PO DEV OPT 16,000 14,000 12,000 10,000 8,000 Base Decline ~28% 6,000 4,000 • Drill 34 wells and grow production to 15,000 boed by the end of 2013. 2,000 • Drill 4 step-out wells to hold land (expiries) and prove up undeve

  30. Slide 30: British Columbia Montney Gas and Liquids

    British Columbia Montney Gas and Liquids

  31. Slide 31: Montney Lands: World Class Resource

    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 ~235 mmcf/d natural gas and 2,600 bbls/d oil and liquids with Dawson contributing approximately 165 mmcf/d • New, 60 mmcf/d gas p

  32. Slide 32: Montney Lands: Significant Montney Presence

    MONTNEY LANDS SIGNIFICANT MONTNEY PRESENCE • ARC has a significant presence in B.C. and Alberta Montney • First to drill B.C. Montney horizontal well in 2005 at Dawson BC Montney Hz Wells – Rig Released by BC Montney Gross Operated Raw Gas B.C.Operator Montney HZ Wells(since Jan - Rig Released Wells

  33. Slide 33: Montney Horizontal Wells

    MONTNEY HORIZONTAL WELLS 30 DAY HZ IP RATES GLACIER - TOWN ARC’S MONTNEY WELLS HAVE EXCEEDED EXPECTATIONS 16,000 14,000 ARC Others 12,000 10,000 Production Rate (mcf/d) ARC Wells P50 = 5.2 Mmcf/d 8,000 Other Wells P50 = 3.4 Mmcf/d 6,000 4,000 2,000 0 (1) Graph represents peak calendar day IP rates f

  34. Slide 34: Parkland/Tower Liquids Rich Gas

    Parkland/Tower Liquids Rich Gas

  35. Slide 35: Parkland/Tower Asset Details

    PARKLAND/TOWER EVALUATING POTENTIAL AND DEVELOPING EXISTING LANDS Parkland Tower Net production Q4 2012 (boe/d) 7,600 1,200 Liquids (bbls/d) 940 770 Gas (mmcf/d) 40 2.5 Land (net sections) 23 56 Working Interest ~84% ~90% Reserves (2P mmboe) 50.8 15.1 Liquids (mmbbls) 8.5 8.5 Gas (bcf) 254 39.7 Farm

  36. Slide 36: Parkland: Layered Development

    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 per section, ~100 meters of pay • EUR/well typically ~ 5 Bcf (20% Reco

  37. Slide 37: Parkland: Layered Well Performance

    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 upper wells and the lower Montney well to date • Lack of vertic

  38. Slide 38: Parkland Montney Development Economics

    PARKLAND MONTNEY DEVELOPMENT ECONOMICS Key Metrics 7,000 DCET Capex per well ($MM) 5.2 Reserves per well (Bcf) 5.8 6,000 IP (1 mo) (MMcf/d) 5.0 IP (12 mo) (MMcf/d) 4.0 Economics ($85/bbl) $4/GJ $3/GJ 5,000 IRR (% AT) 79% 54% Gas Rate (Mcf/d) Recycle Ratio 4.2 3.3 4,000 3,000 2,000 1,000 0 0 6 12 18

  39. Slide 39: Tower: 2012 Accomplishments

    TOWER 2012 ACCOMPLISHMENTS Tower Production 2012 Accomplishments: 2,500 • 2012 Operated Program average 30 day IP rate: 375 boe/d per well 2,000 Gas (Forecast) • Production volumes limited due to Liquids (Forecast) liquid handling restrictions Gas 1,500 Liquids • First of two 8 well development Sale

  40. Slide 40: Tower: Operational Excellence – Minimizing Footprint

    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 development compared to single well leases, up to 20% • Numerous oper

  41. Slide 41: Tower Montney Development Economics

    TOWER MONTNEY DEVELOPMENT ECONOMICS 600 Key Metrics DCET Capex per well ($MM) 5.3 Reserves per well (Mboe) 400 500 IP (1 mo) (boe/d) 500 IP (12 mo) (boe/d) 260 Economics ($85/bbl) $4/GJ $3/GJ 400 IRR (% AT) 41% 37% Production Rate (boe/d) Recycle Ratio 3.3 3.1 300 200 100 0 0 6 12 18 24 30 36 Months

  42. Slide 42: Tower/Parkland 2013 Budget

    TOWER/PARKLAND 2013 BUDGET – $249MM OPERATED 2013 Budget - Volumes (BOED) Operated PO DEV OPT 25,000 20,000 2014 base production, does not include 2014 CAPEX program 15,000 10,000 Base Decline ~21% 5,000 • Drill 24 horizontal wells. • Construct the oil handling, gas processing and pipeline infrastru

  43. Slide 43: Dawson: World Class Asset

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  44. Slide 44: Dawson Asset Details

    DAWSON ASSET DETAILS Net production (boe/d) –Q4 2012 28,800 Liquids (bbls/d) 800 Gas (mmcf/d) 168 45 mmcfd Compressor Production split % (liquids/gas) ~97% gas Station 120 mmcfd Land (Montney net sections) 130 Gas Plant Working Interest ~96% Reserves (2P mmboe) 181 Liquids (mmbbls) 5.2 Gas (bcf) 1,0

  45. Slide 45: Dawson: Type Curve Growth

    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 IP’s with decline analysis and assigned decline exponent rate • 2012 Type curve realized the consistent flat prod

  46. Slide 46: Dawson Montney Development Economics

    DAWSON MONTNEY DEVELOPMENT ECONOMICS 7,000 Key Metrics DCET Capex per well ($MM) 5.2 6,000 Reserves per well (Bcf) 7.1 IP (1 mo) (MMcf/d) 5.0 IP (12 mo) (MMcf/d) 4.8 5,000 $4/GJ $3/GJ Economics ($85/bbl) IRR (% AT) 72% 44% Gas Rate (Mcf/d) 4,000 Recycle Ratio 3.8 2.8 3,000 2,000 1,000 0 0 6 12 18 24

  47. Slide 47: Dawson 2013 Budget

    DAWSON 2013 BUDGET – $52MM OPERATED 2013 Budget - Volumes (BOED) Operated PO DEV 35,000 30,000 25,000 20,000 Base Decline ~28% 15,000 10,000 5,000 • Dawson is a world-class asset that continues to exceed expectations. • Drill 9 horizontal Montney wells, on two pads, add compression to 1-34 compresso

  48. Slide 48: West Montney Long-term Growth Opportunity

    WEST MONTNEY Long-term Growth Opportunity

  49. Slide 49: West Montney Asset Details

    WEST MONTNEY ASSET DETAILS Net production (boe/d)- Q4 2012 3,760 Liquids (bbls/d) 90 Gas (mmcf/d) 22.0 Blueberry Land (net Montney sections) 214 Working Interest ~90% Attachie Reserves (2P mmboe) 131 Liquids (mmbbls) 11 Tower Gas (bcf) 723 Septimus Parkland Reserve Life Index 88 Sunset Dawson Sunris

  50. Slide 50: West Montney: Operational Excellence – Development Planning

    WEST MONTNEY OPERATIONAL EXCELLENCE – DEVELOPMENT PLANNING

  51. Slide 51: Sunrise Production – Outperforming Expectations

    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 A2-25 Hz MTYA (Raw) Cum to Dec.31, 2012: 2.2 Bcf ARC EUR Forec

  52. Slide 52: Montney Sunrise Development Economics

    SUNRISE MONTNEY SUNRISE DEVELOPMENT ECONOMICS Key Metrics DCET Capex per well ($MM) 5.5 Reserves per well (Bcf) 9.7 6,000 IP (1 mo) (MMcf/d) 5.2 IP (12 mo) (MMcf/d) 4.5 5,000 Economics ($85/bbl) $4/GJ $3/GJ Gas Rate mcf/d IRR (% AT) 51% 32% 4,000 Recycle Ratio 4.5 3.2 3,000 2,000 1,000 0 0 6 12 18 2

  53. Slide 53: Base Assets

    Base Assets Significant cash flow, stable production

  54. Slide 54: Base Assets

    BASE ASSETS Montney Growth Assets Base Assets Natural Gas • Redwater Crude Oil • Pembina • Hatton • Weyburn • Jenner Lougheed • • Midale • Goodlands

  55. Slide 55: Pembina: Revitalizing a Mature Oil Field

    Pembina Revitalizing a Mature Oil Field

  56. Slide 56: Pembina Asset Details

    PEMBINA ASSET DETAILS Net production (boe/d) – Q4 2012 12,300 Cardium production ~82% Production split % (liquids/gas) ~75%/25% Land (Cardium net sections) 134 Working Interest ~79% Reserves (2P mmboe) Cardium 49.4 Reserve Life Index 15 2013 Plans • ARC is the second largest operator in the Pembina

  57. Slide 57: Pembina Oil and Liquids Growth

    PEMBINA OIL AND LIQUIDS GROWTH ARC HAS GROWN LIQUIDS PRODUCTION IN THIS MATURE FIELD Pembina ~33% Increase in Oil & Liquids Production since 2006 14,000 12,000 10,000 8,000 Boe/d Q4 2012 - 9,200 boe/d 6,000 Q1 2006 - 6,900 boe/d oil and liquids oil and liquids 4,000 Forecast 2,000 gas oil & liquids

  58. Slide 58: Pembina Oil – Operational Excellence

    PEMBINA OIL – OPERATIONAL EXCELLENCE INDUSTRY LEADING CAPITAL EFFICIENCY • ARC’s average drill and complete costs are 80% of industry average • ARC $1.9 MM per well vs. Industry $2.4 MM per well (1) • ARC’s Cardium well performance is comparable to industry peer average 450 Cardium Area IP Average (

  59. Slide 59: Pembina Cardium Development Economics

    PEMBINA CARDIUM DEVELOPMENT ECONOMICS 250 Key Metrics DCET Capex per well ($MM) 2.3 Reserves per well (Mboe) 171 200 IP (1 mo) (boe/d) 227 IP (12 mo) (boe/d) 90 Economics ($85/bbl) $4/GJ $3/GJ IRR (% AT) 52% 50% 150 Recycle Ratio 3.9 3.8 Rate (boepd) 100 50 0 0 6 12 18 24 30 36 Months On Production

  60. Slide 60: Pembina 2013 Budget

    PEMBINA 2013 BUDGET – $131MM 2013 Budget - Volumes (BOED) Operated and Non-Operated PO DEV OPT 14,000 12,000 10,000 8,000 Base DeclineBase ~23%Decline ~23% Base Decline ~23% 6,000 4,000 • Drill 52 gross operated Hz wells and 2 vertical injectors throughout the Pembina area. • Grow operated productio

  61. Slide 61: SE Saskatchewan Oil: Solid Long-life Assets

    SE SASKATCHEWAN OIL Solid Assets Long-life

  62. Slide 62: SE Saskatchewan / Manitoba Oil Asset Details

    SE SASKATCHEWAN / MANITOBA OIL ASSET DETAILS Net production (boe/d) – Q4 2012 12,200 2013 Plans: Production split 99% liquids • Continue to drill horizontally in a number of properties that were previously only vertically Land (net sections) 241 exploited. Working Interest ~81% • Drilling 51 gross o

  63. Slide 63: Summary

    Summary

  64. Slide 64: Why Invest in ARC Resources

    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 shareholders • Clear line of site for profitable and meaningful g

  65. Slide 65: Risk Managed Value Creation: Production Growth

    RISK MANAGED VALUE CREATION PRODUCTION GROWTH 140,000 Production Growth – Montney and Non-Montney 120,000 100,000 Total Non-Montney production Forecast Forecast Production (boe/d) 80,000 Montney Gas (boe/d) Montney Oil/Liquids (bbls/d) Non-Montney Gas (boe/d) 60,000 Non-Montney Liquids (boe/d) 40,00

  66. Slide 66: Appendix

    Appendix a5

  67. Slide 67: 2012 Financial and Operational Performance

    2012 FINANCIAL AND OPERATIONAL PERFORMANCE Three Months Ended Year Ended December 31 December 31 (CDN$ millions, except per share and per boe amounts) 2012 2011 2012 2011 Production (boe/d) 95,725 92,021 93,546 83,416 Gas 61% 64% 61% 62% Liquids 39% 36% 39% 38% Revenue 374.2 385.9 1,386.8 1,435.6 Ga

  68. Slide 68: 2013 Budget

    2013 BUDGET ($ millions) 2011 (Actual) 2012 (Actual) 2013 (Budget) Development 396 408 563 Development – Facilities 92 73 162 Maintenance 21 23 35 Optimization 14 6 13 Exploration & Seismic 94 49 11 Enhanced Oil Recovery 20 21 27 Land 75 10 - Other 14 18 19 Total Capital $726 $608 $830 (1) Other 201

  69. Slide 69: 2013 Guidance

    2013 GUIDANCE 2012 Guidance 2012 Actual 2013 Guidance Oil (bbls/d) 30,000 – 31,000 31,454 32,000 – 34,000 Condensate (bbls/d) 2,100 – 2,500 2,217 1,800 – 2,000 Gas (mmcf/d) 340 – 350 342.9 340 – 350 NGL’s (bbls/d) 2,100 – 2,600 2,728 2,400 – 2,800 Total (boe/d) 91,000 – 94,000 93,546 93,000 – 97,000

  70. Slide 70: Access to Capital

    ACCESS TO CAPITAL DEBT Debt raised from three different sources: 1. Bank Credit Facility - $1.0 billion plus $25 million overdraft facility, 12 banks under facility • Undrawn as at December 31, 2012 • Term extends to August 3, 2016 • Pre-approval for an additional $250 million (Accordion) 2. Long-te

  71. Slide 71: Debt Maturities

    DEBT MATURITIES SPREAD OVER TIME • ARC’s long-term notes are structured so that they mature over a number of years; this reduces refinancing risk • ARC’s undrawn credit facility of $1.0 billion allows for significant flexibility to repay debt Long-term Notes Principal Repayment Schedule 120 100 80 C

  72. Slide 72: Hedge Positions

    HEDGE POSITIONS AS OF FEBRUARY 6, 2013 Summary of Hedge Positions as at February 6, 2013 (1) 2013 2014 2015 - 2017 Crude Oil – WTI (2): (US$/bbl) US$/bbl bbl/d US$/bbl bbl/d US$/bbl bbl/d Ceiling 104.01 14,992 100.00 2,479 - - Floor 95.01 14,992 90.00 2,479 - - Sold Floor 64.17 11,984 70.00 1,240 -

  73. 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

  74. Slide 74: Definitions of Oil and Gas Reserves and Resources

    DEFINITIONS OF OIL AND GAS RESERVES AND RESOURCES Economic Contingent Resources are those contingent resources which are currently economically recoverable. Undiscovered Petroleum Initially-In-Place (“UPIIP”) is that quantity of petroleum that is estimated, on a given date, to be contained in accumu

  75. Slide 75: “outlook”, “estimates” and similar expressions. These forward-looking statements are based on future performance. Ref…

    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 (April 2013) on 6ix