ARC Resources : Financial Report (2025 Annual Report web)

About this update from Arc Resources Ltd.

‌2025 Annual Report Proud Producer of Canadian Energy Proud Producer Reliable energy for the world of Canadian Energy ARC Resources is a Canadian energy company with a strong track record of operational and financial performance. Today, we are the largest condensate producer and the country's third-largest natural gas producer. Our strategy is to be the best-in-class responsible energy producer. Our approach centres on producing low-cost energy safely and efficiently. Backed by our investment-grade credit rating, we have established a strong and resilient energy company that's well-positioned to meet the world's energy needs today and into the future. Production Profile (1) ~ 374 Mboe/d 13% 2% 26% 59% Natural Gas ~1.3 Bcf/d Condensate ~99,000 bbl/d Natural Gas Liquids (NGLs) ~47,000 bbl/d Crude Oil ~8,000 bbl/d ON THE COVER AND RIGHT: ARC's Gold Creek plant and Dawson III & IV facilities. (1) Average annual daily production as of the year ended December 31, 2025. Table of Contents About ARC Resources Ltd. 2 Message to Shareholders 4 2025 Operational and Financial Highlights 6 Management's Discussion and Analysis 7 Consolidated Financial Statements 70 Shareholder Information 117 ‌Message to Shareholders As we enter our 30 th year of business, our commitment to operational excellence, capital discipline, and an uncompromising focus on safety have laid a strong foundation for our future. Terry Anderson President and Chief Executive Officer 2025 was a year marked by record production, strong financial results and outstanding safety performance. Through a year of high activity and complexity, our team outperformed every safety indicator, demonstrating that safety is our #1 priority. Record Annual Average Production & Reserves In 2025, we delivered strong operational and financial results driven by solid performance across the majority of our assets. Average production of approximately 374,000 boe per day was a record for the year, and included crude oil and condensate production of approximately 107,000 barrels per day, largely driven by our condensate-rich assets - Kakwa and Attachie. In addition, we reported record reserves across all categories in 2025. Proved developed producing and total proved plus probable ("2P") reserves increased by 15 per cent and nine per cent, respectively, compared to 2024. We continue to operate our business with discipline and a focus on long-term profitability. This was evidenced once again with our decision to curtail nearly 400 MMcf per day of natural gas production at Sunrise during periods of weak pricing. In doing so, we deferred approximately $50 million in capital, while preserving resource for periods of higher pricing. As natural gas prices improved late in the year, we restored production at Sunrise. As a result, in combination with our low-cost transport to U.S. markets, ARC's annual average realized natural gas price (1) was $3.51 per Mcf, which was $1.65 per Mcf above AECO - the 13th consecutive year we exceeded the AECO benchmark by 20 per cent or more. At Attachie, we completed our first full year of operations since we commissioned the asset in late 2024. At more than 360 net sections, Attachie is a large-scale asset in its early stages of development. Today, we are working on just 10 per cent of the total sections we have accumulated in the area - its potential is considerable. In 2025, average production was approximately 28,000 boe per day with well performance that was at times varied and, ultimately, lower than our expectations. As a result, we exercised discipline and adjusted our development schedule in the near term to allow our technical teams more time to analyze the results and inform the optimal plan moving forward. Consolidation in the Montney Last year, ARC executed two strategic opportunities that consolidated Montney resource adjacent to our existing assets. First, in July we completed a transaction that added approximately 40,000 boe per day in production at Kakwa, and second, we entered a unique agreement with Tsaa Dunne Za Energy - a limited partnership owned by Halfway River First Nation - that allows for the development of up to 36 sections of land at Attachie. The Kakwa acquisition made a meaningful impact in the last half of the year, contributing positively to our condensate production and 2P reserves of 2,277 MMboe. Both transactions increase our footprint in the Montney and add to long-term profitability. Natural Gas Diversification Strategy Early this year, we commenced delivery of our long-term supply agreement to Shell for the LNG Canada project. This is an important project that represents a meaningful increase in Canadian natural gas demand which will also bolster ARC's long-term profitability. In March last year, 4 | 2025 ANNUAL REPORT | ARC RESOURCES LTD. No task is so urgent that it cannot be done safely. When completing large projects, ARC holds Safety Stand Down meetings to ensure hazards are identified and teams are aligned. In 2025, the Company's strong safety culture resulted in exceptional safety performance. we announced an agreement with ExxonMobil LNG Asia Pacific for the purchase of our LNG offtake from the Cedar LNG Project that is expected to commence in 2028. This is an exciting time for ARC as we are on the threshold of executing the next phase in our natural gas diversification strategy - shipping our low-cost natural gas to international markets. Next year, we're on-track to see our first molecules of natural gas shipped to Asia from the U.S. Gulf Coast, providing exposure to global LNG prices. Risk Managed Value Creation In 2025, we continued to profitably grow our business, investing a total of $1.9 billion in capital expenditures (1) . This resulted in total free funds flow (1) of $1.3 billion and $2.20 on a per share (1) basis - both nearly double what they were in 2024. We returned 75 per cent of our free funds flow to shareholders, repurchasing nearly 20 million shares and declaring $452 million in dividends, with the remainder allocated to reducing net debt. During the year, we sustainably grew our quarterly dividend by 11 per cent - the fifth consecutive year we have increased it. Looking ahead, ARC is poised for another year of continued growth and value creation. In 2026, our annual average production is set to surpass the 400,000 boe per day mark, and at current strip prices, we anticipate generating another $1.2 billion in free funds flow (2) - essentially all of which we intend to return to our shareholders. The horizon is positive, and we are set to deliver significant and sustainable value by leaning on our competitive strengths - a world-class asset base, owned and operated infrastructure, long-term takeaway to global markets and a strong balance sheet. On behalf of management and our Board of Directors, thank you to our shareholders, partners, service providers, Indigenous communities, governments and investors for your ongoing support and trust in ARC. And thank you to our exceptional team, whose commitment to strong performance and safety continues to drive our success. We look forward to delivering on our strategy in this milestone year. Thank you, Terry Anderson President and Chief Executive Officer Refer to page 6 and the "Non-GAAP and Other Financial Measures" section of the Company's MD&A for additional details. Based on forward pricing as of January 22, 2026 of US$59 per barrel WTI; C$2.70 per Mcf AECO. ARC RESOURCES LTD. | 2025 ANNUAL REPORT | 5 ‌2025 Operational and Financial Highlights (1) ARC delivered strong operational and financial results in 2025. These results were achieved while upholding our longstanding principles of safety, capital discipline, and financial strength. Annual Average Daily Production (boe/d) Net Income ($ millions) per share 2025 374,336 2025 $1,275 $2.19 2024 347,908 2024 $1,124 $1.88 Funds From Operations ($ millions) $2,473 2024 $3,192 2025 per share $5.48 $4.15 Free Funds Flow ($ millions) $627 2024 $1,284 2025 per share $2.20 $1.05 Net Debt to Funds From Operations (ratio) Operating Expense ($/boe) Capital Expenditures ($ millions) 0.5x 2024 0.9x 2025 $4.68 2024 $5.39 2025 $1,846 2024 $1,909 2025 Throughout this report, ARC adheres to Canadian generally accepted accounting principles ("GAAP"). In some instances, ARC employs certain measures to analyze its financial performance, financial position, and cash flows including, "capital expenditures", "free funds flow" and "free funds flow per share", that do not have any standardized meaning under International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and may not be comparable to similar measures presented by other entities. The most directly comparable GAAP measure for capital expenditures is cash flow used in investing activities, and the most directly comparable GAAP measure for free funds flow is cash flow from operating activities. Free funds flow per share includes a non-GAAP financial measure component of free funds flow. The non-GAAP and other financial measures should not be considered to be more meaningful than measures determined in accordance with IFRS Accounting Standards as indicators of ARC's financial performance, financial position, or cash flows. Certain additional disclosures for these non-GAAP and other financial measures have been incorporated by reference and can be found in the section entitled "Non-GAAP and Other Financial Measures" in ARC's Management's Discussion and Analysis ("MD&A") as at and for the three months and year ended December 31, 2025, available here and under ARC's SEDAR+ profile at https://www.sedarplus.ca . 6 | 2025 ANNUAL REPORT | ARC RESOURCES LTD. ‌Management's Discussion and Analysis For the Three Months and Year Ended December 31, 2025 About ARC Resources Ltd. 8 Quarterly Results 10 14 Annual Guidance 11 2025 Fourth Quarter Financial and Operational Highlights Risk Factors 46 Control Environment 59 Financial Reporting Update 59 Non-GAAP and Other Financial Measures 60 Forward-looking Information and Statements 65 Glossary 67 Annual Historical Review 68 Quarterly Historical Review 69 ARC RESOURCES LTD. | 2025 ANNUAL REPORT | 7 ‌MANAGEMENT'S DISCUSSION AND ANALYSIS This Management's Discussion and Analysis ("MD&A") of ARC Resources Ltd. ("ARC" or the "Company") is Management's analysis of the financial performance and significant trends and external factors that may affect future performance. It is dated February 5, 2026, and should be read in conjunction with the audited consolidated financial statements (the "financial statements") as at and for the year ended December 31, 2025, and the MD&A and unaudited condensed interim consolidated financial statements for the periods ended March 31, 2025, June 30, 2025, and September 30, 2025, as well as ARC's 2024 Annual Information Form ("AIF"), each of which is available on ARC's website at www.arcresources.com and on SEDAR+ at www.sedarplus.ca . All financial information is reported in Canadian dollars and all per share information is based on diluted weighted average common shares, unless otherwise noted. Throughout this MD&A, crude oil ("crude oil") refers to light crude oil, medium crude oil, and heavy crude oil as defined by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Condensate is a natural gas liquid as defined by NI 51-101. Throughout this MD&A, natural gas liquids ("NGLs") comprise all NGLs as defined by NI 51-101 other than condensate, which is disclosed separately. Crude oil and liquids ("crude oil and liquids") refers to crude oil, condensate, and NGLs. Throughout this MD&A and in other materials disclosed by the Company, ARC presents financial measures that adhere to Canadian generally accepted accounting principles ("GAAP") and International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), however the Company also employs certain non-GAAP financial measures to analyze financial performance, financial position, and cash flow including, "netback", "capital expenditures", "free funds flow", "adjusted earnings before interest and taxes" ("adjusted EBIT"), and "average capital employed". Additionally, other financial measures are also used to analyze performance including, but not limited to, "funds from operations" and "net debt". These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered to be more meaningful indicators of ARC's performance than GAAP measures which are determined in accordance with IFRS Accounting Standards, such as net income, cash flow from operating activities, and cash flow used in investing activities. Readers are cautioned that the MD&A should be read in conjunction with the sections entitled "Non-GAAP and Other Financial Measures", "Forward-looking Information and Statements", and "Glossary" at the end of this MD&A. ABOUT ARC RESOURCES LTD. ARC is a dividend-paying, Canadian energy company headquartered in Calgary, Alberta. ARC's activities focus on the exploration, development, and production of unconventional natural gas, condensate, NGLs, and crude oil in western Canada with an emphasis on the development of assets with a large volume of hydrocarbons in-place, commonly referred to as "resource plays". The guiding principles upon which ARC conducts its business have created a strong foundation for the Company's performance. ARC's standard of operational excellence, robust risk management program, and strong balance sheet have positioned the Company to effectively manage volatile market conditions. The Company's concentrated asset base, located in premier positions within the Montney fairway and network of owned-and-operated infrastructure, allows ARC to deliver strong capital and operating efficiencies. The commodity and geographic optionality within the asset base allows ARC to manage risk. ARC exercises capital discipline and maintains a deliberate pace of development to manage its corporate decline rate. ARC's business model is focused on a strong balance sheet, with ample liquidity, social and governance leadership, long-term corporate profitability, free funds flow generation, and paying a dividend to shareholders. Together with the Company's premier land position in the Montney, significant resource in-place, large inventory of future drilling locations, and high-performance people and culture, these principles make ARC a differentiated company. Highlights Corporate highlights for the years 2021 through 2025 are shown in Table 1: Table 1 ($ millions, except per share amounts, or unless otherwise noted) 2025 2024 2023 2022 2021 Production (1) Crude oil and condensate (bbl/d) 106,984 87,266 83,880 86,393 70,393 Natural gas (MMcf/d) 1,324 1,307 1,322 1,259 1,149 NGLs (bbl/d) 46,625 42,787 47,760 49,385 40,084 Total production (boe/d) 374,336 347,908 351,954 345,613 302,003 Average daily production per thousand shares (2) 0.64 0.58 0.58 0.52 0.48 Net income 1,275.1 1,124.1 1,596.5 2,302.3 786.6 Net income per share 2.19 1.88 2.61 3.47 1.25 Cash flow from operating activities 3,093.5 2,348.6 2,394.3 3,833.3 2,006.5 Cash flow from operating activities per share (3) 5.31 3.94 3.92 5.78 3.20 Funds from operations (4) 3,192.4 2,472.5 2,639.6 3,712.5 2,415.4 Funds from operations per share (3) 5.48 4.15 4.32 5.60 3.85 Free funds flow (5) 1,283.7 627.0 789.8 2,270.6 1,353.6 Free funds flow per share (6) 2.20 1.05 1.29 3.42 2.16 Cash flow used in investing activities 3,536.0 1,906.2 1,690.7 1,413.2 808.1 Capital expenditures (7) 1,908.7 1,845.5 1,849.8 1,441.9 1,061.8 Long-term debt (8) 2,878.1 1,387.4 1,148.9 990.0 1,705.3 Net debt (4) 2,866.1 1,335.6 1,317.1 1,301.5 1,828.7 Net debt to funds from operations (ratio) (4) 0.9 0.5 0.5 0.4 0.8 Return on average capital employed ("ROACE") (%) (9) 16 16 23 35 18 Proved plus probable reserves (MMboe) (10)(11) 2,277.5 2,098.2 1,994.3 1,828.6 1,760.6 Proved plus probable reserves per share (boe) (10)(11) 3.9 3.5 3.3 2.8 2.8 Reported production amount is based on Company's interest before royalty burdens. Represents average daily production divided by the diluted weighted average common shares outstanding for the respective years ended December 31. Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A for an explanation of composition. Refer to Note 16 "Capital Management" in the financial statements and to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A. Non-GAAP financial measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other entities. The most directly comparable GAAP measure for free funds flow is cash flow from operating activities. Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A. Non-GAAP ratio that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar ratios presented by other entities. Includes the non-GAAP financial measure component of free funds flow. Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A for an explanation of composition. Non-GAAP financial measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other entities. The most directly comparable GAAP measure for capital expenditures is cash flow used in investing activities. Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A. Refer to Note 13 "Long-term Debt" in the financial statements. Long-term debt includes current and long-term portions. Non-GAAP ratio that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar ratios presented by other entities. Includes non-GAAP financial measure components of adjusted EBIT and average capital employed. Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A for an explanation of composition. Crude oil, condensate, natural gas, and NGLs reserves ("reserves") as determined by ARC's independent qualified reserves evaluator ("IQRE") with an effective date of December 31 for the years shown in accordance with the Canadian Oil and Gas Evaluation Handbook and NI 51-101. Reserves are the gross interest reserves before deduction of royalties and without including any royalty interests. For more information, see ARC's AIF and the news release entitled " ARC Resources Ltd. Reports Year-end 2025 Results and Reserves " dated February 5, 2026, available on ARC's website at www.arcresources.com and on SEDAR+ at www.sedarplus.ca . ‌QUARTERLY RESULTS (1) Trends in net income, cash flow from operating activities, and funds from operations are primarily associated with fluctuations in commodity sales from production which reflect changes in production levels and commodity prices. Net income is also impacted by changes in the value of risk management contracts and impairment or reversal of impairment of property, plant and equipment ("PP&E"). Exhibit 1 Net Income Cash Flow from Operating Activities $ millions 500 250 Q1 2024 Q2 2024 Q3 2024 Q2 2024 Q3 2024 0 1.00 0.50 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 0.00 1,200 $ per share $ millions 900 600 300 Q1 2024 0 2.00 $ per share 1.50 1.00 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 0.50 Net income Per share, diluted Cash flow from operating activities Per share, diluted 1,000 $ millions 750 500 250 0 Funds from Operations Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Funds from operations Per share, diluted 2.00 1.60 1.20 0.80 0.40 600 $ per share $ millions 400 200 0 -200 Free Funds Flow Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Free funds flow Per share, diluted 1.20 $ per share 0.90 0.60 0.30 0.00 -0.30 Long-term Debt and Net Debt Average Daily Production 3,200 $ millions 2,400 1,600 800 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2024 Q3 2024 0 450,000 boe/d 300,000 150,000 Q2 2025 Q3 2025 Q4 2025 Q1 2024 0 0.80 per 1,000 shares 0.70 0.60 0.50 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 0.40 Long-term debt Net debt Daily production (boe/d) Daily production per thousand shares The details contained in the graphs above are included in the section entitled "Quarterly Historical Review" contained within this MD&A. ‌ANNUAL GUIDANCE ARC's 2025 and 2026 annual guidance and a review of 2025 results are outlined in Table 2: Table 2 2025 Guidance 2025 Actual % Variance from 2025 Guidance 2026 Guidance Production Crude oil and condensate (bbl/d) 107,000 - 112,000 106,984 - 105,000 - 115,000 Natural gas (MMcf/d) 1,290 - 1,310 1,324 1 1,500 - 1,520 NGLs (bbl/d) 43,000 - 45,000 46,625 4 48,000 - 52,000 Total (boe/d) 365,000 - 375,000 374,336 - 405,000 - 420,000 Expenses ($/boe) (1) Operating 5.00 - 5.50 5.39 - 5.40 - 5.90 Transportation 5.00 - 5.50 5.04 - 5.25 - 5.75 General and administrative ("G&A") expense before share-based compensation expense 1.00 - 1.10 1.10 - 1.00 - 1.10 G&A - share-based compensation expense 0.30 - 0.40 0.18 (40) 0.25 - 0.35 Interest and financing (2) 0.90 - 1.00 0.98 - 1.10 - 1.20 Current income tax expense, as a per cent of funds from operations (1) 5 - 10 8 - 5 - 10 Capital expenditures ($ billions) (3) 1.85 - 1.95 1.91 - 1.8 - 1.9 Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A for an explanation of composition. Excludes accretion expense. Refer to the section entitled "About ARC Resources Ltd." contained within this MD&A for historical capital expenditures. 2025 results are within stated guidance ranges, with the exception of G&A - share-based compensation expense, which was below the guidance range due to the relative depreciation of ARC's share price as well as a decrease in the performance multiplier associated with certain of ARC's share-based compensation plans. ARC's priority is to provide an attractive total shareholder return by balancing profitable reinvestment in the Company's assets with a meaningful return of capital through dividends and share repurchases. In 2025, ARC invested $1.9 billion in capital expenditures. In 2026, ARC has developed a capital budget of between $1.8 to $1.9 billion. The planned changes from 2025 to 2026 reflect production growth with a focus on well-related capital investment. The 2026 budget is expected to deliver average annual production of between 405,000 to 420,000 boe per day. For more information regarding 2026 guidance, refer to the news releases dated November 6, 2025 and February 5, 2026, entitled " ARC Resources Ltd. Reports Third Quarter 2025 Results, Announces 2026 Budget and 11 per cent Dividend Increase " and " ARC Resources Ltd. Reports Year-end 2025 Results and Reserves ", available on ARC's website at www.arcresources.com and on SEDAR+ at www.sedarplus.ca . Exhibit 2 2025 Production Guidance 2025 Guidance 2025 Actual Total (boe/d) 360,000 365,000 370,000 375,000 380,000 Crude Oil and Condensate (bbl/d) 104,000 106,000 108,000 110,000 112,000 114,000 Natural Gas (MMcf/d) 1,260 1,280 1,300 1,320 1,340 NGLs (bbl/d) 40,000 42,000 44,000 46,000 48,000 Exhibit 2a 2025 Expense Guidance 2025 Guidance 2025 Actual Operating ($/boe) 4.75 5.00 5.25 5.50 5.75 Transportation ($/boe) 4.75 5.00 5.25 5.50 5.75 G&A ($/boe) (1) 1.00 1.25 1.50 1.75 Interest and Financing ($/boe) 0.80 0.90 1.00 1.10 (1) Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A for an explanation of composition. ‌2025 FOURTH QUARTER FINANCIAL AND OPERATIONAL RESULTS During the year ended December 31, 2025, ARC completed an acquisition of condensate-rich Montney assets in the Kakwa region in Alberta (the "Kakwa Assets") from Strathcona Resources Ltd. (the "Transaction"). For more information refer to Note 6 "Business Combination" in the financial statements. The Transaction expands ARC's holdings in its core Kakwa region, increases its drilling inventory in the area, increases ARC's owned-and-operated infrastructure which reinforces a low cost structure and operational flexibility, and presents operational and financial synergies with ARC's contiguous operations. The Transaction reinforces ARC's position as Canada's largest Montney and condensate producer. Financial Highlights Table 3 Three Months Ended Year Ended ($ millions, except per share and production September December December December December data) 30, 2025 31, 2025 31, 2024 % Change 31, 2025 31, 2024 % Change Net income 214.4 259.9 370.3 (30) 1,275.1 1,124.1 13 Net income per share 0.37 0.45 0.63 (29) 2.19 1.88 16 Cash flow from operating activities 713.3 668.1 650.9 3 3,093.5 2,348.6 32 Cash flow from operating activities per share 1.23 1.16 1.10 5 5.31 3.94 35 Funds from operations 779.0 874.3 770.4 13 3,192.4 2,472.5 29 Funds from operations per share 1.34 1.52 1.30 17 5.48 4.15 32 Free funds flow 282.6 415.4 420.4 (1) 1,283.7 627.0 105 Free funds flow per share 0.49 0.72 0.71 1 2.20 1.05 110 Dividends declared per share (1) 0.19 0.21 0.19 11 0.78 0.70 11 Average daily production (boe/d) 359,236 408,382 382,341 7 374,336 347,908 8 (1) Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A for an explanation of composition. Net Income In the fourth quarter of 2025, ARC recognized net income of $259.9 million ($0.45 per share), a decrease of $110.4 million from ARC's fourth quarter 2024 net income of $370.3 million ($0.63 per share). The decrease in net income is primarily attributed to a loss on risk management contracts of $72.5 million, as compared to a gain of $59.2 million in the same period of the prior year, and increased depletion, depreciation, and amortization ("DD&A") of $74.7 million. This was partially offset by an increase in commodity sales from production of $93.3 million, driven by an increase in production. Exhibit 3 Change in Net Income Three Months Ended December 31 93.3 27.8 370.3 18.5 (131.7) 24.5 (52.5) 259.9 (74.7) (15.6) 600 $ millions 400 200 Q4 2024 Commodity sales from prod uction Royalties Risk manage ment contrac ts Ope rating and transportat ion G&A DD&A Income tax es Other (1) Q4 2025 0 (1) Includes sales of third-party purchases, interest and other income, third-party purchases, interest and financing, impairment (reversal of impairment) of financial assets, and foreign exchange. For the year ended December 31, 2025, ARC recognized net income of $1.3 billion ($2.19 per share) compared to $1.1 billion ($1.88 per share) for the prior year. The $151.0 million increase in net income is primarily attributed to an increase in commodity sales from production of $818.0 million, driven by increased production and a higher average realized natural gas price. This was partially offset by a decreased gain on risk management contracts of $261.7 million, increased DD&A of $186.5 million, and increased operating and transportation expense of $165.6 million. Exhibit 3a Change in Net Income Year Ended December 31 818.0 72.5 (261.7) (165.6) (186.5) 1,275.1 1,124.1 (27.9) (76.0) (21.8) 2,100 1,800 1,500 $ millions 1,200 900 600 300 2024 Commodity sales from production Risk management contracts Operating and transportation G&A DD&A (1) Income taxes Gain on disposal of assets Other (2) 2025 0 Includes DD&A and impairment of PP&E. Includes royalties, sales of third-party purchases, interest and other income, third-party purchases, interest and financing, impairment (reversal of impairment) of financial assets, and foreign exchange. Cash Flow from Operating Activities and Funds from Operations Cash flow from operating activities for the three months ended December 31, 2025, was $668.1 million, an increase of $17.2 million from ARC's fourth quarter 2024 cash flow from operating activities of $650.9 million. For the year ended December 31, 2025, cash flow from operating activities increased to $3.1 billion from $2.3 billion for the year ended December 31, 2024. The increase in cash flow from operating activities for the three months and year ended December 31, 2025, compared to the same periods in the prior year, primarily reflects higher funds from operations. ARC considers funds from operations to be a key measure of financial performance as it demonstrates ARC's ability to generate the necessary funds to maintain production at current levels and fund future growth through capital investment. Management believes that such a measure provides an insightful assessment of financial performance on a continuing basis by eliminating certain non-cash charges and actual settlements of asset retirement obligation ("ARO"), of which the nature and timing of expenditures are discretionary. Funds from operations is a capital management measure, which is not a standardized measure and therefore may not be comparable with the calculation of similar measures by other entities. Refer to Note 16 "Capital Management" in the financial statements and to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A. Table 4 is a reconciliation of ARC's net income to funds from operations and its most directly comparable GAAP measure, cash flow from operating activities: Table 4 Three Months Ended Year Ended September December December December December ($ millions) 30, 2025 31, 2025 31, 2024 31, 2025 31, 2024 Net income 214.4 259.9 370.3 1,275.1 1,124.1 Adjusted for the following non-cash items: Unrealized loss (gain) on risk management contracts 111.0 144.0 (9.5) 253.0 (82.4) DD&A and impairment of PP&E 401.8 447.1 372.4 1,547.2 1,360.7 Unrealized loss (gain) on foreign exchange 0.3 - (2.7) 3.3 5.1 Gain on disposal of assets - - - (4.0) (80.0) Deferred taxes 43.5 18.2 36.3 98.8 130.5 Other 8.0 5.1 3.6 19.0 14.5 Funds from operations 779.0 874.3 770.4 3,192.4 2,472.5 Net change in other liabilities (32.5) (7.8) 3.2 (95.4) (19.9) Change in non-cash operating working capital (33.2) (198.4) (122.7) (3.5) (104.0) Cash flow from operating activities 713.3 668.1 650.9 3,093.5 2,348.6 Details of the change in funds from operations from the three months and year ended December 31, 2024 to the three months and year ended December 31, 2025 are included in Table 5 below: Table 5 Three Months Ended December 31 Year Ended December 31 $ millions $/share $ millions $/share Funds from operations - 2024 770.4 1.30 2,472.5 4.15 Production volume variance Crude oil and liquids 167.9 0.28 720.4 1.21 Natural gas (2.2) - 11.9 0.02 Commodity price variance Crude oil and liquids (226.7) (0.39) (465.4) (0.78) Natural gas 154.3 0.26 551.1 0.92 Sales of third-party purchases 100.4 0.17 170.6 0.29 Interest and other income (1.5) - 0.2 - Realized gain on risk management contracts 21.8 0.04 73.7 0.12 Royalties 27.8 0.05 (11.9) (0.02) Expenses Operating (47.9) (0.08) (139.4) (0.23) Transportation (4.6) (0.01) (26.2) (0.05) Third-party purchases (96.0) (0.16) (153.5) (0.26) G&A 18.5 0.03 72.5 0.12 Interest and financing (10.5) (0.02) (14.5) (0.02) Realized loss on foreign exchange (5.8) (0.01) (16.6) (0.03) Current income tax 6.4 0.01 (59.6) (0.10) Other 2.0 - 6.6 0.01 Weighted average shares, diluted - 0.05 - 0.13 Funds from operations - 2025 874.3 1.52 3,192.4 5.48 Funds from operations for the three months ended December 31, 2025, was $874.3 million ($1.52 per share), an increase of $103.9 million from $770.4 million ($1.30 per share) for the three months ended December 31, 2024. For the year ended December 31, 2025, funds from operations was $3.2 billion ($5.48 per share), an increase of $719.9 million from $2.5 billion ($4.15 per share) for the year ended December 31, 2024. The increase in funds from operations for the three months ended December 31, 2025, is primarily due to an increase in production, partially offset by a decrease in average realized crude oil and liquids prices. Exhibit 4 Change in Funds from Operations Three Months Ended December 31 165.7 21.8 27.8 18.5 6.4 874.3 770.4 (72.4) (47.9) (4.6) (10.5) (0.9) 1,000 $ millions 500 Q4 2024 Volume Price Risk managem ent contracts Royalties Operating Transportation G&A Interest and financing Current incom e tax Other (1) Q4 2025 0 (1) Includes sales of third-party purchases, interest and other income, third-party purchases, foreign exchange, and other non-cash items. The increase in funds from operations for the year ended December 31, 2025, is primarily due to an increase in production and an increase in average realized natural gas prices, partially offset by an increase in operating expense. Exhibit 4a Change in Funds from Operations Year Ended December 31 732.3 85.7 73.7 72.5 9.4 3,192.4 (11.9) (139.4) (26.2) (16.6) 2,472.5 (59.6) 4,000 3,000 $ millions 2,000 1,000 2024 Volume Price Risk management contracts Royalties Operating Transportation G&A Foreign exchange Current income tax Other (1) 2025 0 Includes sales of third-party purchases, interest and other income, third-party purchases, interest and financing, and other non-cash items. Net Income Sensitivity Table 6 illustrates sensitivities of operating items to business environment and operational changes and the resulting impact on net income: Table 6 Assumption Change Impact on Annual Net Income Notional Amount ($ millions) $/share Business Environment (1) Crude oil price ($/bbl) (2)(3) 81.75 10 % 235.6 0.40 Natural gas price ($/Mcf) (2) 3.51 10 % 169.9 0.29 Cdn$/US$ exchange rate (2)(4) 1.40 5 % 170.4 0.29 Interest rate on floating-rate debt (%) 4.52 1 % 4.6 0.01 Operational (5) Crude oil and liquids production (bbl/d) 153,609 5 % 104.9 0.18 Natural gas production (MMcf/d) 1,324 5 % 1.6 - Royalties ($/boe) 3.93 5 % 20.6 0.04 Operating ($/boe) 5.39 5 % 28.2 0.05 Transportation ($/boe) 5.04 5 % 26.4 0.05 G&A ($/boe) 1.28 5 % 6.7 0.01 Calculations are performed independently and may not be indicative of actual results that would occur when multiple variables change at the same time. The subsequent impact on risk management contracts is not included. Prices and rates are indicative of ARC's average realized commodity prices for the year ended December 31, 2025. Refer to Table 10 contained within this MD&A for additional details. The calculated impact on net income is indicative of changes in the underlying benchmark prices and differentials and would only be applicable within a limited range of these amounts. Includes the impact on crude oil, condensate, and NGLs prices. Includes impact of foreign exchange on crude oil, condensate, natural gas, and NGLs prices that are realized in US dollars. Operational assumptions are based upon results for the year ended December 31, 2025 and the calculated impact on net income would only be applicable within a limited range of these amounts. Exhibit 5 Net Income Sensitivity 10% change in crude oil price 5% change in Cdn$/US$ exchange rate 10% change in natural gas price 5% change in crude oil and liquids production volumes 5% change in operating 5% change in transportation 5% change in royalties 5% change in G&A 1% change in interest rate on floating- rate debt 5% change in natural gas production volumes (300) (200) (100) 0 100 200 300 Impact on annual net income ($ millions) Production A breakdown of production by product type and percentage of production by product type is outlined in Table 7: Table 7 Three Months Ended Year Ended September December December December December Production 30, 2025 31, 2025 31, 2024 % Change 31, 2025 31, 2024 % Change Crude oil (bbl/d) 7,977 7,872 6,589 19 8,322 6,972 19 Condensate (bbl/d) 105,982 111,026 96,388 15 98,662 80,294 23 NGLs (bbl/d) 50,014 54,500 42,998 27 46,625 42,787 9 Crude oil and liquids (bbl/d) 163,973 173,398 145,975 19 153,609 130,053 18 Natural gas (MMcf/d) 1,172 1,410 1,418 (1) 1,324 1,307 1 Total production (boe/d) 359,236 408,382 382,341 7 374,336 347,908 8 Natural gas production (%) 54 58 62 (4) 59 63 (4) Crude oil and liquids production (%) 46 42 38 4 41 37 4 For the three months and year ended December 31, 2025, total production increased seven per cent and eight per cent, respectively, as compared to the same periods of the prior year. For the three months and year ended December 31, 2025, crude oil and liquids production increased 19 per cent and 18 per cent, respectively, as compared to the same periods in the prior year. The increase for the three months and year ended December 31, 2025, was primarily due to new production from ARC's Attachie Phase I facility and incremental production in the Kakwa area as a result of acquiring the Kakwa Assets. For the three months ended December 31, 2025, natural gas production decreased one per cent as compared to the same period in the prior year. The decrease for the three months ended December 31, 2025, was primarily due to the deliberate curtailment of production from the Sunrise area in response to low western Canadian natural gas prices, partially offset by new production from ARC's Attachie Phase I facility. For the year ended December 31, 2025, natural gas production increased one per cent, as compared to the prior year. The increase for the year ended December 31, 2025, was due to new production from ARC's Attachie Phase 1 facility and incremental production in the Kakwa area as a result of acquiring the Kakwa Assets, partially offset by the curtailment of production in the Sunrise area. Exhibit 6 Average Daily Production 240,000 200,000 bbl/d 160,000 120,000 80,000 40,000 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 1,600 MMcf/d 1,200 800 400 0 Crude oil (bbl/d) Condensate (bbl/d) NGLs (bbl/d) Natural gas (MMcf/d) Table 8 summarizes ARC's production by core area for the three months ended December 31, 2025 and December 31, 2024: Table 8 Three Months Ended December 31, 2025 Production Total Crude Oil Condensate Natural Gas NGLs Core Area (boe/d) (bbl/d) (bbl/d) (MMcf/d) (bbl/d) Kakwa 215,073 1,039 84,942 537.2 39,563 Greater Dawson 96,826 497 12,077 453.8 8,612 Sunrise 48,644 - 203 290.3 60 Attachie 28,286 - 13,182 69.4 3,530 Ante Creek 18,565 6,335 621 59.1 1,765 All other 988 1 1 0.1 970 Total 408,382 7,872 111,026 1,409.9 54,500 Three Months Ended December 31, 2024 Production Total Crude Oil Condensate Natural Gas NGLs Core Area (boe/d) (bbl/d) (bbl/d) (MMcf/d) (bbl/d) Kakwa 195,362 20 74,497 543.4 30,276 Greater Dawson 98,149 776 12,466 459.0 8,412 Sunrise 52,545 - 452 311.8 134 Attachie 16,950 - 8,305 40.2 1,952 Ante Creek 18,821 5,675 667 63.6 1,874 All other 514 118 1 0.2 350 Total 382,341 6,589 96,388 1,418.2 42,998 Exhibit 7 Average Daily Production by Core Area Three Months Ended December 31, 2025 7% 4% 12% 53% 24% Kakwa Greater Dawson Sunrise Attachie Ante Creek Table 8a summarizes ARC's production by core area for the years ended December 31, 2025 and December 31, 2024: Table 8a Year Ended December 31, 2025 Production Total Crude Oil Condensate Natural Gas NGLs Core Area (boe/d) (bbl/d) (bbl/d) (MMcf/d) (bbl/d) Kakwa 188,511 329 72,436 496.7 32,962 Greater Dawson 96,134 562 11,943 451.3 8,417 Sunrise 41,522 - 208 247.5 67 Attachie 28,370 - 13,463 68.6 3,470 Ante Creek 19,839 7,430 612 60.2 1,767 All other (40) 1 - 0.1 (58) Total 374,336 8,322 98,662 1,324.4 46,625 Year Ended December 31, 2024 Production Total Crude Oil Condensate Natural Gas NGLs Core Area (boe/d) (bbl/d) (bbl/d) (MMcf/d) (bbl/d) Kakwa 177,852 19 64,555 486.3 32,228 Greater Dawson 93,556 607 11,452 441.3 7,941 Sunrise 49,997 - 333 297.4 105 Attachie 6,659 - 3,327 16.6 558 Ante Creek 19,517 6,237 626 65.0 1,821 All other 327 109 1 0.5 134 Total 347,908 6,972 80,294 1,307.1 42,787 Exhibit 7a Average Daily Production by Core Area Year Ended December 31, 2025 5% 8% 11% 50% 26% Kakwa Greater Dawson Sunrise Attachie Ante Creek Commodity Sales from Production For the three months and year ended December 31, 2025, commodity sales from production increased by seven per cent and 18 per cent, respectively, as compared to the same periods in 2024. The increases for the three months and year ended December 31, 2025 are primarily due to an increase in crude oil and liquids production volumes, driven by condensate production, and an increase in natural gas prices. A breakdown of commodity sales from production by product type and percentage of commodity sales from production by product type is outlined in Tables 9 and 9a: Table 9 Three Months Ended Year Ended Commodity Sales from Production, by Product Type September December December December December ($ millions) 30, 2025 31, 2025 31, 2024 % Change 31, 2025 31, 2024 % Change Crude oil 60.8 53.3 55.5 (4) 248.3 233.4 6 Condensate 825.5 801.4 847.0 (5) 3,104.7 2,850.7 9 Natural gas 296.8 489.0 336.9 45 1,697.6 1,134.6 50 NGLs 80.4 95.1 106.1 (10) 371.1 385.0 (4) Commodity sales from production 1,263.5 1,438.8 1,345.5 7 5,421.7 4,603.7 18 Table 9a Three Months Ended Year Ended % of Commodity Sales from Production by September December December December December Product Type 30, 2025 31, 2025 31, 2024 % Change 31, 2025 31, 2024 % Change Crude oil and liquids 77 66 75 (9) 69 75 (6) Natural gas 23 34 25 9 31 25 6 Commodity sales from production 100 100 100 - 100 100 - Exhibit 8 Commodity Sales from Production by Product Three Months Ended December 31, 2025 Commodity Sales from Production by Product Year Ended December 31, 2025 6% 4% 34% 56% 7% 5% 31% 57% Crude oil Condensate Natural gas NGLs Crude oil Condensate Natural gas NGLs Commodity Prices A listing of benchmark commodity prices and ARC's average realized commodity prices are outlined in Table 10: Table 10 Three Months Ended Year Ended September December December December December 30, 2025 31, 2025 31, 2024 % Change 31, 2025 31, 2024 % Change Average Benchmark Prices WTI crude oil (US$/bbl) 64.97 59.14 70.32 (16) 64.73 75.76 (15) Cdn$/US$ exchange rate 1.38 1.39 1.40 (1) 1.40 1.37 2 WTI crude oil (Cdn$/bbl) 89.66 82.20 98.45 (17) 90.62 103.79 (13) Peace Sour Price at Edmonton (Cdn$/bbl) 83.20 73.42 92.16 (20) 82.58 93.13 (11) Condensate Stream Price at Edmonton (Cdn$/bbl) 87.16 79.87 99.37 (20) 88.75 100.36 (12) NYMEX Henry Hub Last Day Settlement (US$/MMBtu) 3.07 3.55 2.79 27 3.43 2.27 51 Chicago Citygate Monthly Index (US$/MMBtu) 2.70 3.43 2.71 27 3.26 2.14 52 AECO 7A Monthly Index (Cdn$/Mcf) 1.00 2.34 1.46 60 1.86 1.44 29 ARC Average Realized Commodity Prices (1) Crude oil ($/bbl) 82.75 73.63 91.46 (19) 81.75 91.46 (11) Condensate ($/bbl) 84.66 78.45 95.52 (18) 86.21 97.00 (11) Natural gas ($/Mcf) 2.75 3.77 2.58 46 3.51 2.37 48 NGLs ($/bbl) 17.47 18.97 26.83 (29) 21.81 24.59 (11) Average realized commodity price ($/boe) 38.23 38.30 38.25 - 39.68 36.15 10 (1) Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A for an explanation of composition. Benchmark Commodity Prices Average WTI crude oil prices decreased nine per cent in the fourth quarter of 2025 compared to the prior quarter and 16 per cent compared to the fourth quarter of 2024. Crude oil prices declined as global supply outpaced demand, resulting in rising inventory levels across most regions. While geopolitical risks among certain crude oil-producing countries remain elevated, recent escalations had a limited impact on crude oil prices. The Edmonton condensate benchmark price decreased eight per cent in the fourth quarter of 2025 compared to the prior quarter and 20 per cent compared to the fourth quarter of 2024. With limited change in local market fundamentals and pricing differentials, western Canadian condensate pricing corresponded with declining WTI crude oil pricing in the quarter. Average NYMEX Henry Hub natural gas prices increased 16 per cent in the fourth quarter of 2025 compared to the prior quarter and 27 per cent compared to the fourth quarter of 2024. Natural gas prices increased during the quarter due to higher early winter domestic heating demand and record levels of US liquefied natural gas ("LNG") exports. The AECO 7A Monthly Index increased 134 per cent in the fourth quarter of 2025 compared to the prior quarter and 60 per cent compared to the fourth quarter of 2024. Prices increased during the quarter as concerns related to elevated local inventory levels eased with the transition into winter demand season and higher pipeline and LNG export activity out of Western Canada. ARC's Average Realized Commodity Prices For the three months ended December 31, 2025, ARC's average realized crude oil and condensate prices decreased 19 per cent and 18 per cent, respectively, compared to the same period in the prior year. For the year ended December 31, 2025, both ARC's average realized crude oil and condensate prices decreased 11 per cent compared to the prior year. The decreases for the three months and year ended December 31, 2025, primarily reflect a weaker WTI benchmark price. ARC's natural gas sales are physically diversified to multiple sales points within North America, each with different index-based pricing. All of ARC's natural gas sold in the United States complies with the rules of origin under the Canada-United States-Mexico Agreement. ARC's average realized natural gas price increased 46 per cent and 48 per cent for the three months and year ended December 31, 2025, respectively, compared to the same periods of the prior year. The increases are primarily due to stronger benchmark prices in most North American markets. Exhibit 9 Natural Gas Sales Points Three Months Ended December 31, 2025 Natural Gas Sales Points Year Ended December 31, 2025 AECO US Midwest US Gulf Coast Pacific Northwest Station 2 Dawn AECO 10% 6% 9% 8% 39% 28% 10% 7% 36% 9% 8% 30% US Midwest US Gulf Coast Pacific Northwest Station 2 Dawn During the year ended December 31, 2025, ARC entered into a long-term LNG sale and purchase agreement (the "Agreement") with ExxonMobil LNG Asia Pacific ("EMLAP"). Under the Agreement, EMLAP will purchase all of ARC's LNG offtake from the Cedar LNG Project, approximately 1.5 million tonnes per annum, at international LNG pricing. For additional information, refer to the news release dated March 11, 2025, entitled " ARC Resources Ltd. Announces Long-Term Sale and Purchase Agreement with ExxonMobil ", available on ARC's website at www.arcresources.com and on SEDAR+ at www.sedarplus.ca . Risk Management Contracts The fair value of ARC's risk management contracts at December 31, 2025 was a net asset of $53.1 million, representing the expected value of settlement of ARC's contracts at the balance sheet date after adjustments for credit risk. This comprises a net asset of $40.8 million from crude oil contracts, a net asset of $6.2 million from natural gas contracts, and a net asset of $6.1 million from foreign currency contracts. Exhibit 10 Change in Risk Management Net Asset September 30, 2025 to December 31, 2025 Change in Risk Management Net Asset December 31, 2024 to December 31, 2025 197.1 19.2 (92.7) 53.1 (70.5) 306.1 64.6 (57.4) 53.1 (260.2) 250 400 200 300 $ millions $ millions 150 200 100 100 50 September 30, 2025 Change in price New transactions Settled positions December 31, 2025 December 31, 2024 Change in price New transactions Settled positions December 31, 2025 0 0 Tables 11 and 11a summarize the gain or loss on risk management contracts for the three months and year ended December 31, 2025 compared to the same periods in 2024: Table 11 Risk Management Contracts ($ millions) Crude Oil & Condensate Natural Gas Embedded Derivative (1) Foreign Currency Q4 2025 Total Q4 2024 Total Realized gain (loss) on risk management contracts (2) 33.2 38.5 - (0.2) 71.5 49.7 Unrealized gain (loss) on risk management contracts (3) (4.6) 16.9 (160.2) 3.9 (144.0) 9.5 Gain (loss) on risk management contracts 28.6 55.4 (160.2) 3.7 (72.5) 59.2 Represents the change in fair value of embedded derivatives contained within certain natural gas sales contracts. Represents actual cash settlements under the respective contracts recognized in net income during the period. Represents the change in fair value of the contracts recognized in net income during the period. Table 11a Risk Management Contracts ($ millions) Crude Oil & Condensate Natural Gas Embedded Derivative (1) Foreign Currency 2025 Total 2024 Total Realized gain (loss) on risk management contracts (2) 68.5 198.7 - (3.2) 264.0 190.3 Unrealized gain (loss) on risk management contracts (3) 3.4 (115.5) (163.5) 22.6 (253.0) 82.4 Gain (loss) on risk management contracts 71.9 83.2 (163.5) 19.4 11.0 272.7 Represents the change in fair value of embedded derivatives contained within certain natural gas sales contracts. Represents actual cash settlements under the respective contracts recognized in net income during the period. Represents the change in fair value of the contracts recognized in net income during the period. ARC's realized gain on risk management contracts for the three months and year ended December 31, 2025, primarily reflects cash settlements received on WTI crude oil, AECO, and AECO basis natural gas contracts. As compared to the same periods of the prior year, the increase in realized gain on risk management contracts for the three months and year ended December 31, 2025, is primarily the result of lower WTI crude oil prices and a wider AECO basis differential relative to contract prices. ARC's unrealized loss on risk management contracts for the three months ended December 31, 2025, compares to an unrealized gain for the same period of the prior year and primarily reflects revaluation of the embedded derivative positions with narrower differentials between North American and international gas prices. ARC's unrealized loss for the year ended December 31, 2025, compares to an unrealized gain for the prior year and primarily reflects the revaluation of the embedded derivative positions with narrower differentials between North American and international gas prices, as well as AECO and AECO basis natural gas contracts settlements received throughout the period. Embedded Derivatives ARC is party to two separate long-term natural gas supply agreements whereby ARC will deliver natural gas to specified North American delivery points and receive international pricing in exchange. These contracts have been determined to contain embedded derivatives that are required by IFRS Accounting Standards to be valued separately from their host contracts. Table 12 summarizes the details of the agreements: Table 12 Volume (MMBtu/d) Term Delivery Point Pricing Formula Anticipated Commencement JKM Agreement 140,000 15 years Chicago JKM less transport and liquefaction 2027 TTF Agreement 140,000 15 years Gulf Coast TTF less transport, liquefaction and regasification 2029 In respect of these contracts, ARC recognized an unrealized loss on risk management contracts of $160.2 million and $163.5 million for the three months and year ended December 31, 2025 (unrealized gain of $5.2 million and $31.2 million for the three months and year ended December 31, 2024), respectively. At December 31, 2025, the fair value of the embedded derivatives was a liability of $138.3 million (asset of $25.2 million at December 31, 2024). The fair value reflects the estimated differentials between forward pricing at the respective delivery points and those contained in the pricing formulas. Due to the long-term nature of these agreements and multiple variables impacting the estimated valuations, it is anticipated that the estimated fair value of the embedded derivatives will fluctuate over time as the agreements mature. For further information, refer to Note 17 "Financial Instruments and Market Risk Management" in the financial statements. Netback and Netback per boe The components of ARC's netback and netback per boe for the three months and year ended December 31, 2025 compared to the same periods in 2024 are summarized in Tables 13 and 13a: Table 13 Three Months Ended Year Ended September December December December December Netback ($ millions) (1) 30, 2025 31, 2025 31, 2024 % Change 31, 2025 31, 2024 % Change Commodity sales from production 1,263.5 1,438.8 1,345.5 7 5,421.7 4,603.7 18 Royalties (138.0) (115.3) (143.1) (19) (536.8) (524.9) 2 Operating (210.4) (194.8) (146.9) 33 (735.8) (596.4) 23 Transportation (147.4) (181.6) (177.0) 3 (689.1) (662.9) 4 Netback 767.7 947.1 878.5 8 3,460.0 2,819.5 23 Non-GAAP financial measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other entities. Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A. Table 13a Three Months Ended Year Ended September December December December December Netback per boe ($ per boe) (1) 30, 2025 31, 2025 31, 2024 % Change 31, 2025 31, 2024 % Change Commodity sales from production (2) 38.23 38.30 38.25 - 39.68 36.15 10 Royalties (2) (4.18) (3.07) (4.07) (25) (3.93) (4.12) (5) Operating (6.36) (5.18) (4.18) 24 (5.39) (4.68) 15 Transportation (4.46) (4.83) (5.03) (4) (5.04) (5.21) (3) Netback per boe 23.23 25.22 24.97 1 25.32 22.14 14 Non-GAAP ratio that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar ratios presented by other entities. Includes a non-GAAP financial measure component of netback. Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A. Refer to the section entitled "Non-GAAP and Other Financial Measures" contained within this MD&A for an explanation of composition. Exhibit 11 Netback and Netback per boe 1,250 40.00 1,000 $ per boe 30.00 $ millions 750 500 20.00 10.00 250 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 0.00 Netback Netback per boe

View stock analysis, news, and events for Arc Resources Ltd.