Arc Resources Ltd.

Arc Resources — Investor Presentation (May 2025)

59 slides from Arc Resources's investor presentation, May 2025

  1. Slide 1: ARC Resources Ltd. Investor Presentation Q2 2025

    ARC Resources Ltd. Investor Presentation Photo Caption copy area Q2 2025

  2. Slide 2: Corporate Profile

    Corporate Profile Premium investment opportunity for Montney exposure, one of the most profitable assets in North America Shares outstanding 1 585 million BC & Alberta Montney Producers 400 Attachie Phase I 2 (2025E) Market capitalization $15.7 billion Natural Gas (Mboe/d) Liquids (Mb/d) Long-term d

  3. 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 million Montney acres Swan Hills Ante Creek Ante Redwater Cree

  4. Slide 4: Investment Case for ARC

    Investment Case for ARC World-class Assets Free Funds Flow Per Share1 2 Growth • Canada's largest Montney & condensate producer 4.00 • Capability to grow >500 Mboe/d and sustain for greater than 10 years 3.00 Commitment to Shareholder Returns • Clear strategy to triple free funds flow per share $ pe

  5. Slide 5: 2025 Capital Budget

    2025 Capital Budget

  6. Slide 6: 2025 Guidance – Production & Expenses

    2025 Guidance – Production & Expenses 2025 Guidance Production Crude oil and condensate (bbl/day) 104,000 - 110,000 Natural gas (MMcf/day) 1,400 – 1,420 NGLs (bbl/day) 42,000 - 48,000 Total production (boe/day) 380,000 - 395,000 Expenses ($/boe)(1) Operating 4.50 - 4.90 Transportation 5.00 - 5.50 G&

  7. Slide 7: 2025 Guidance – Capital Expenditures & Production

    2025 Guidance – Capital Expenditures & Production Attachie ~$360MM Ante Creek 26 wells ~35,000 boe/day ~$80MM 11 wells ~20,000 boe/day Greater Dawson ~$195MM 21 wells Kakwa ~95,000 boe/day ~$800MM 64 wells ~172,500 boe/day Sunrise ~$105MM 8 wells ~60,000 boe/day Total capital expenditures of $1.6 to

  8. Slide 8: Long-term Plan

    Dawson III & IV, BC Long-term Plan

  9. Slide 9: Long-term Outlook Delivers Significant Value

    Long-term Outlook Delivers Significant Value Disciplined plan to grow free funds flow per share1 Boe/day Base Production Attachie I Attachie II 425,000 400,000 ~245% 375,000 Free Funds Flow3 Per Share Growth (~35% CAGR4) 350,000 325,000 300,000 $4.00 2024 2025 Free Funds Flow per share 2026 2027 202

  10. Slide 10: 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 10 1) First LNG contract to receive international pricing expect

  11. Slide 11: Capital Allocation

    Kakwa, AB Capital Allocation

  12. Slide 12: Track Record of Capital Discipline

    Track Record of Capital Discipline A disciplined investment framework fundamental to profitable growth Return on Average Capital Employed1 2 40% 30% Average 12% 20% 10% 0% -10% -20% 12 1) Non-GAAP Financial Measure — see "Non-GAAP and Other Financial Measures" in the Advisory Statements of this pres

  13. Slide 13: Long-term Outlook

    Long-term Outlook Disciplined investment drives free funds flow per share growth $ millions Capital Expenditures1,2 $ millions Free Funds Flow2 2,000 WTI US$50/B; AECO C$2.50/GJ 3,000 WTI US$70/B; AECO C$3.50/GJ WTI US$80/B; AECO C$4.50/GJ 1,000 2,500 ~$10 billion Cumulative - 2,000 Free Funds Flow

  14. Slide 14: Return of Capital Strategy

    Return of Capital Strategy Balancing sustainable dividend growth with share repurchases Shares (millions) >10% $1.20 800 Dividend Per Share Growth CAGR22, 3, 4 Dividend per share Dividend payout ratio Outstanding shares 750 $1.00 700 ~15% 650 Dividend Payout Ratio3 $0.80 (% of FFO) 600 $0.60 550 Sus

  15. Slide 15: Asset Portfolio Overview

    Parkland, BC Asset Portfolio Overview

  16. Slide 16: Montney Overview

    Montney Overview ARC’s competitive advantage in a world-class asset ~4,700 Drilling locations >20 years High quality inventory ~300 meters Thickness ~1.7 Bcf/d ~190 Mbbl/d Owned-and-operated infrastructure 16

  17. Slide 17: Montney Outcompetes North America Plays

    Montney Outcompetes North America Plays Low-cost and deep inventory relative to North American shale plays 17 1) Turn-in line (TILs)

  18. Slide 18: North American Natural Gas Inventory

    North American Natural Gas Inventory ARC has a 25-year inventory life economic below US$2.50/MMbtu Source | Enverus Intelligence Research 18

  19. Slide 19: Montney Inventory

    Montney Inventory ARC has a deep Montney inventory at the low end of the cost curve C$/Mcf Supply Cost of Inventory by Property1, 2 3.50 Gas AT NPV10 Supply Cost (CAD$/Mcf) 3.00 2.50 ~50% of total inventory has a supply cost 2.00 below C$0/Mcf 1.50 1.00 0.50 0.00 0 500 1000 1500 2000 2500 3000 3500

  20. Slide 20: 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 2028 Attachie 440,000 Montney Crude Oil & Liquids (bbl/d) 2025 Phase II Attachie Montney Natural Gas (boe/d) 2021 Phase I 400,000 ARC acquires Seven Generation

  21. Slide 21: 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 ~1.7 Bcf/d 25 Mbbl/day processing capacity Dawson 300 MMcf/day 20 Mbbl/day ~190 Mbbl/d Sunrise

  22. Slide 22: Kakwa Overview

    Kakwa Overview Liquids-rich asset offering a long runway of development 175,000 boe/d Able to sustain at 170,000 - 175,000 boe/d for the next 12 years SCALE Developed (50%) Kakwa development to date covers ~50% Gold Creek Plant Undeveloped (50%) of ARC’s land base Cutbank PREDICTABILITY Plant ~900 p

  23. Slide 23: 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

  24. Slide 24: Dawson Overview

    Dawson Overview Flagship asset delivering superior free funds flow2 with a long inventory runway Developed (36%) >1 Tcf Natural Gas Produced 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

  25. Slide 25: Sunrise Overview

    Sunrise Overview Scale and low-cost – the key ingredients to supply West Coast LNG EFFICIENT Highly efficient Developed (43%) dry natural gas play due to stacked Undeveloped (57%) UMA development layers Interconnected to Coastal GasLink to move gas volumes to West Coast LNG LOW-COST Lower Sustaining

  26. Slide 26: Attachie

    Attachie Attachie, BC

  27. Slide 27: Attachie Overview

    Attachie Overview Phase I development delivering free funds flow in 2025 Scale for Multi-phase Development READINESS EFFICIENT SCALE Liquids sales to UMA Pembina >300 net sections in condensate-rich Montney Overpressured liquids-rich resource LMA Consolidated Land Base Drives Efficiencies Multi-laye

  28. Slide 28: Attachie Phase I Overview

    Attachie Phase I Overview Condensate rich and natural gas asset successfully commissioned in Q4 2024 Q1 2023 Q4 2023 Q1 2024 Q2 2024 Q4 2024 Q1 2025 2025 Project Drilling First Pad Transmission Facility Complete – First Full Quarter Average Production of Sanctioning Commences Completed Line Complete

  29. Slide 29: Attachie Phase I Production Update

    Attachie Phase I Production Update 40,000 Date Production % (boe/day) Liquids Nov 2024​ 18,000​ 63%​ • Q1 2025 production 35,000 Dec 2024​ 28,500​ 62%​ Jan 2025 31,700 ~61%​ averaged 31,085 boe per 30,000 Feb 2025 31,900 ~61%​ day (14,800 bbl/day of Mar 2025 29,700 ~58% 2025E ~35,000 ~60% condensate

  30. Slide 30: 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

  31. Slide 31: LNG & Marketing Strategy

    Sunrise, BC LNG & Marketing Strategy

  32. Slide 32: 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

  33. Slide 33: Natural Gas Marketing Strategy

    Natural Gas Marketing Strategy Portfolio with well-diversified global price exposure is driving strong realizations 12 ARC’s Current Natural Gas Portfolio Natural Gas Financial Exposure 9% 11% 15% 13% 29% 15% 12% 15% 12% 11% 11% 14% 2% 13% 13% 111% 21% 12% 11% 10% 20% 21% 10% 16% 15% 15% 26% 29% 35%

  34. Slide 34: 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

  35. Slide 35: Appendix

    Ante Creek, AB Appendix

  36. Slide 36: 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 170 – 175 S

  37. Slide 37: 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 37 1) See "Information Regarding Disclosure on Crude Oil and Natural G

  38. Slide 38: 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 ~3,600 3,000 3.00 2,000 2.00 ~1,100 1.00 1,000 - - 2022 2023 2024 Booked Locations Unbooked Locations 38 ARC’s $41 pe

  39. Slide 39: Financial Strength

    Financial Strength Strong financial position has been a foundation of ARC for 28 years 2025 forecasted net debt sensitivities1 Long-term notes repayment schedule $ billions, ratio Cdn$ millions 1.5x 600 1.5 2.354% Cdn$ Note 3.465% Cdn$ Note 450 1.0x 1.0 300 0.5 0.5x 150 0.0 0.0x US$50/bbl WTI & US$6

  40. Slide 40: 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

  41. Slide 41: 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

  42. Slide 42: 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

  43. Slide 43: 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

  44. Slide 44: Attachie Drilling Efficiency

    Attachie Drilling Efficiency Sustainable efficiency improvements since sanction Drilling Hole Size Drilling Days 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Optimization - Successful transition to 171 mm vs 200 mm hole (-2 days/well) 1,000 Drill Bits and Directional Tool 2,000 Measured Depth Optimization Rea

  45. Slide 45: Attachie Phase I

    Attachie Phase I Delivers production outcomes similar to Kakwa Cum Condensate (Mbbl) PERFORMANCE Condensate (bbl/d) Well performance at Attachie Phase I replicates Kakwa core for both gas and liquids Month Month EFFICIENT Cum Gas (MMscf) Pad, well and completion Gas (mcf/d) designs are specific to e

  46. 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%

  47. 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

  48. Slide 48: WCSB Natural Gas Market Outlook

    WCSB Natural Gas Market Outlook WCSB demand projections suggest >3 Bcf/d of incremental production is required by 2028-2029 WCSB Natural Gas Outlook WCSB LNG Export Capacity Buildout 6 6 LNG Canada Ph. 2 5 5 Cedar LNG Woodfibre LNG Canada Ph. 1 4 4 Operational Bcf/d 3 3 Bcf/d 2 2 1 1 0 0 LNG Exports

  49. 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 March 31, 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 87.

  50. 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

  51. Slide 51: Advisory Statements

    Advisory Statements

  52. Slide 52: Advisory Statements

    Advisory Statements Notes Regarding Forward-looking Information This presentation contains certain forward-looking statements and forward-looking information (collectively referred to as "forward-looking information") within the meaning of applicable securities legislation about current expectations

  53. 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,

  54. 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

  55. 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

  56. 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

  57. 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

  58. 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

  59. Slide 59: 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

ARC Resources — Investor Presentation (May 2025) on 6ix