Canada NewsWire
CALGARY, AB, Nov. 3, 2022
CALGARY, AB, Nov. 3, 2022 /CNW/ - (TSX: ARX) ARC Resources Ltd. ("ARC" or the "Company") today reported its third quarter 2022 financial and operational results and announced its 2023 budget.
HIGHLIGHTS
Q3 2022 Results - ARC delivered quarterly production of 342,034 boe(1)(2) per day (60 per cent natural gas and 40 per cent crude oil and liquids), cash flow from operating activities of $1,104 million, and generated funds from operations of $953 million(3) ($1.45 per share)(4).
Funds Flow Allocation - ARC has increased its targeted return to 50 to 100 per cent of free funds flow to shareholders, from its previous target of 50 to 80 per cent.
Dividend Increase - ARC's Board of Directors ("the Board") has approved has approved a 25 per cent increase to ARC's quarterly dividend, from $0.12 to $0.15 per share. The dividend increase is effective for ARC's fourth quarter 2022 dividend, payable on January 16, 2023 to shareholders of record on December 30, 2022.
2023 Capital Budget - The Board has approved a preliminary 2023 capital budget of $1.8 billion. The capital program balances profitable growth with the flexibility to increase capital returns to shareholders as net debt is reduced.
ARC's unaudited condensed interim consolidated financial statements and notes (the "financial statements") and Management's Discussion and Analysis ("MD&A") as at and for the three and nine months ended September 30, 2022, are available on ARC's website at www.arcresources.com and under ARC's SEDAR profile at www.sedar.com. The disclosure under the section entitled "Non-GAAP and Other Financial Measures" in ARC's MD&A as at and for the three and nine months ended September 30, 2022 (the "Q3 2022 MD&A") is incorporated by reference in this news release.
(1) | ARC has adopted the standard six thousand cubic feet ("Mcf") of natural gas to one barrel ("bbl") of crude oil ratio when converting natural gas to barrels of oil equivalent ("boe"). Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value. |
(2) | Throughout this news release, crude oil ("crude oil") refers to light, medium, and heavy crude oil product types 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 news release, natural gas liquids ("NGLs") comprise all natural gas liquids as defined by NI 51-101 other than condensate, which is disclosed separately. Throughout this news release, crude oil and liquids ("crude oil and liquids") refers to crude oil, condensate, and NGLs. |
(3) | See Note 10 "Capital Management" in the financial statements and "Non-GAAP and Other Financial Measures" in the Q3 2022 MD&A for information relating to this capital management measure, which information is incorporated by reference into this news release. |
(4) | See "Non-GAAP and Other Financial Measures" in the Q3 2022 MD&A for an explanation of the composition of this supplementary financial measure, which information is incorporated by reference into this news release. |
(5) | Non-GAAP financial measure that is not a standardized financial measure under International Financial Reporting Standards ("IFRS") and may not be comparable to similar financial measures disclosed by other issuers. See "Non-GAAP and Other Financial Measures" in the Q3 2022 MD&A for information relating to this non-GAAP financial measure, which information is incorporated by reference into this news release. See "Non-GAAP and Other Financial Measures" of this news release for the most directly comparable financial measure disclosed in ARC's current financial statements to which such non-GAAP financial measure relates and a reconciliation to such comparable financial measure. |
(6) | Non-GAAP financial ratio that is not a standardized financial measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Free funds flow, a non-GAAP financial measure, is used as a component of the non-GAAP financial ratio. See "Non-GAAP and Other Financial Measures" in the Q3 2022 MD&A for the non-GAAP financial ratio for the comparative period and other information relating to this non-GAAP financial ratio, which information is incorporated by reference into this news release. |
(7) | Refer to the section entitled "About ARC Resources Ltd." contained within the Q3 2022 MD&A for historical free funds flow, which information is incorporated by reference into this news release. |
(8) | Forward curve as at October 20, 2022 (US$WTI $77.59 per barrel; C$4.61/mcf AECO). |
FINANCIAL AND OPERATIONAL RESULTS
(Cdn$ millions, except per share amounts(1), boe amounts, | Three Months Ended | Nine Months Ended(2) | |||
and common shares outstanding) | June 30, | September 30, | September 30, | September 30, | September 30, |
FINANCIAL RESULTS | |||||
Net income | 762.9 | 867.8 | 53.6 | 1,561.3 | 108.6 |
Per share | 1.13 | 1.32 | 0.07 | 2.32 | 0.18 |
Cash flow from operating activities | 1,092.6 | 1,103.6 | 615.0 | 2,955.0 | 1,337.8 |
Per share(3) | 1.61 | 1.68 | 0.85 | 4.38 | 2.22 |
Funds from operations | 1,029.7 | 953.0 | 765.4 | 2,726.3 | 1,581.8 |
Per share | 1.52 | 1.45 | 1.06 | 4.04 | 2.63 |
Free funds flow | 677.3 | 580.1 | 497.0 | 1,667.7 | 894.9 |
Per share | 1.00 | 0.89 | 0.69 | 2.47 | 1.49 |
Dividends declared | 79.9 | 76.7 | 47.1 | 224.8 | 111.9 |
Per share | 0.12 | 0.12 | 0.066 | 0.34 | 0.186 |
Cash flow used in investing activities | 363.9 | 351.9 | 228.8 | 1,062.5 | 539.4 |
Capital expenditures | 352.4 | 372.9 | 268.4 | 1,058.6 | 686.9 |
Long-term debt | 1,247.6 | 1,126.6 | 1,849.0 | 1,126.6 | 1,849.0 |
Net debt | 1,511.4 | 1,541.3 | 1,926.4 | 1,541.3 | 1,926.4 |
Common shares outstanding, weighted average diluted (millions) | 676.8 | 655.4 | 723.1 | 674.2 | 601.8 |
Common shares outstanding, end of period (millions) | 663.7 | 637.6 | 711.7 | 637.6 | 711.7 |
OPERATIONAL RESULTS | |||||
Production | |||||
Crude oil (bbl/day) | 8,297 | 8,149 | 8,639 | 8,114 | 11,304 |
Condensate (bbl/day) | 75,793 | 82,203 | 77,539 | 77,018 | 55,152 |
Crude oil and condensate (bbl/day) | 84,090 | 90,352 | 86,178 | 85,132 | 66,456 |
Natural gas (MMcf/day) | 1,219 | 1,227 | 1,300 | 1,242 | 1,101 |
NGLs (bbl/day) | 48,877 | 47,108 | 50,891 | 48,736 | 37,316 |
Total (boe/day) | 336,112 | 342,034 | 353,657 | 340,855 | 287,233 |
Average realized price | |||||
Crude oil ($/bbl)(3) | 134.52 | 111.41 | 77.43 | 119.31 | 71.09 |
Condensate ($/bbl)(3) | 137.91 | 110.35 | 85.72 | 122.14 | 81.11 |
Natural gas ($/Mcf)(3) | 9.08 | 9.29 | 4.67 | 8.10 | 4.17 |
NGLs ($/bbl)(3) | 34.16 | 20.72 | 27.92 | 27.67 | 25.51 |
Average realized price ($/boe)(3) | 72.31 | 65.37 | 41.88 | 63.89 | 37.67 |
Netback | |||||
Commodity sales from production ($/boe)(3) | 72.31 | 65.37 | 41.88 | 63.89 | 37.67 |
Royalties ($/boe)(3) | (11.10) | (9.23) | (3.38) | (9.37) | (2.90) |
Operating expense ($/boe)(3) | (4.66) | (4.69) | (3.58) | (4.46) | (4.00) |
Transportation expense ($/boe)(3) | (6.27) | (6.08) | (4.93) | (5.97) | (4.52) |
Netback ($/boe)(4) | 50.28 | 45.37 | 29.99 | 44.09 | 26.25 |
TRADING STATISTICS(5) | |||||
High price | 22.88 | 19.51 | 11.95 | 22.88 | 11.95 |
Low price | 14.81 | 13.12 | 7.51 | 11.66 | 5.88 |
Close price | 16.23 | 16.59 | 11.87 | 16.59 | 11.87 |
Average daily volume (thousands of shares) | 9,208 | 5,315 | 3,034 | 7,322 | 3,156 |
(1) | Per share amounts, with the exception of dividends, are based on weighted average diluted common shares. |
(2) | Comparative figures represent ARC's results prior to the closing of the business combination with Seven Generations on April 6, 2021, and therefore do not reflect historical data from Seven Generations. |
(3) | See "Non-GAAP and Other Financial Measures" in the Q3 2022 MD&A for an explanation of the composition of this supplementary financial measure, which information is incorporated by reference into this news release. |
(4) | Non-GAAP financial ratio that is not a standardized financial measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Netback, a non-GAAP financial measure, is used as a component of the non-GAAP financial ratio. See "Non-GAAP and Other Financial Measures" in the Q3 2022 MD&A for the non-GAAP financial ratio for the comparative period and other information relating to this non-GAAP financial ratio, which information is incorporated by reference into this news release. |
(5) | Trading prices are stated in Canadian dollars on a per share basis and are based on intra-day trading on the Toronto Stock Exchange. |
2023 CAPITAL BUDGET
The Board has approved a preliminary capital budget of $1.8 billion. The budget was designed with profitable growth and capital discipline in mind, and includes an updated framework that allows capital returns to increase as net debt approaches ARC's long-term target. The capital program adheres to ARC's long-standing principles of prudent capital allocation, balance sheet strength, and long-term profitability.
Strategic Priorities
The 2023 budget is expected to generate average production of approximately 350,000 boe per day (60 per cent natural gas and 40 per cent crude oil and liquids) representing two per cent production growth. The program is expected to generate approximately $1.7 billion of free funds flow, at the current forward curve. The 2023 capital budget incorporates an approximately 20 per cent increase due to cost inflation realized over the course of 2022.
Capital Budget Highlights
(1) | Refer to the section entitled "About ARC Resources Ltd." contained within the Q3 2022 MD&A for historical capital expenditures, which information is incorporated by reference into this news release. |
Free Funds Flow Allocation
ARC's goal is to provide shareholders with an attractive total return through profitable investments and sustainable return of capital measures. Balance sheet strength is foundational to ARC and critical to capitalize on counter-cyclical opportunities; however, as net debt meets or falls below ARC's long-term targets, ARC intends to increase the proportion of free funds flow that is returned to shareholders.
2023 Guidance
ARC's 2023 preliminary corporate guidance is based on various commodity price scenarios and economic conditions; certain guidance estimates may fluctuate with commodity price changes and regulatory changes. ARC's guidance provides readers with the information relevant to Management's expectations for financial and operational results for 2023. Readers are cautioned that the guidance estimates may not be appropriate for any other purpose.
2023 Guidance | |||||||||||||||||||||||||||||
Crude oil (bbl/day) | 8,500 - 9,000 | ||||||||||||||||||||||||||||
Condensate (bbl/day) | 79,000 - 81,000 | ||||||||||||||||||||||||||||
Crude oil and condensate (bbl/day) | 87,500 - 90,000 | ||||||||||||||||||||||||||||
Natural gas (MMcf/day) | 1,260 - 1,270 | ||||||||||||||||||||||||||||
NGLs (bbl/day) | 47,000 - 49,000 | ||||||||||||||||||||||||||||
Total (boe/day) | 345,000 - 350,000 | ||||||||||||||||||||||||||||
Expenses ($/boe)(1) | |||||||||||||||||||||||||||||
Operating | 4.60 - 5.00 | ||||||||||||||||||||||||||||
Transportation | 5.50 - 6.00 | ||||||||||||||||||||||||||||
General and administrative ("G&A") expense before share-based compensation expense | 0.85 - 0.95 | ||||||||||||||||||||||||||||
G&A - share-based compensation expense | 0.25 - 0.35 | ||||||||||||||||||||||||||||
Interest and financing(2) | 0.65 - 0.75 | ||||||||||||||||||||||||||||
Current income tax expense as a per cent of funds from operations(1) | 10 - 15 | ||||||||||||||||||||||||||||
Capital expenditures ($ billions) | 1.8 |
(1) | See "Non-GAAP and Other Financial Measures" in the Q3 2022 MD&A for an explanation of the composition of these supplementary financial measures, which information is incorporated by reference into this news release. |
(2) | Excludes accretion of ARC's asset retirement obligation. |
2022 Guidance
Full-year 2022 guidance for production, expenses, and capital expenditures remains unchanged. Refer to the section entitled "Annual Guidance" in ARC's MD&A for the three and nine months ended September 30, 2022, available on ARC's website at www.arcresources.com and under ARC's SEDAR profile at www.sedar.com.
THIRD QUARTER RESULTS
Cash Flow Used in Investing Activities and Capital Expenditures
The following table details ARC's capital activity by area during the first nine months of 2022.
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Area | Wells Drilled(1) | Wells Completed(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kakwa | 78 | 72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater Dawson | 6 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sunrise | — | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ante Creek | 8 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 92 | 106 |
(1) Wells drilled and completed for operated assets only. |
Production and Operating Expense
Production
Operating Expense
Free Funds Flow, Funds from Operations, and Cash Flow from Operating Activities
Free Funds Flow
Funds from Operations and Cash Flow from Operating Activities
The following table details the change in funds from operations for the third quarter of 2022 relative to the second quarter of 2022.
Funds from Operations Reconciliation | $ millions | $/share(1) | ||||||||||||||||||||||||||
Funds from operations for the three months ended June 30, 2022 | 1,029.7 | 1.52 | ||||||||||||||||||||||||||
Production volumes | ||||||||||||||||||||||||||||
Crude oil and liquids | 87.2 | 0.13 | ||||||||||||||||||||||||||
Natural gas | 18.2 | 0.03 | ||||||||||||||||||||||||||
Commodity prices | ||||||||||||||||||||||||||||
Crude oil and liquids | (283.9) | (0.42) | ||||||||||||||||||||||||||
Natural gas | 23.8 | 0.03 | ||||||||||||||||||||||||||
Sales of commodities purchased from third parties | (128.6) | (0.19) | ||||||||||||||||||||||||||
Interest income | 0.3 | — | ||||||||||||||||||||||||||
Other income | (5.2) | (0.01) | ||||||||||||||||||||||||||
Realized loss on risk management contracts | 42.4 | 0.06 | ||||||||||||||||||||||||||
Royalties | 49.1 | 0.07 | ||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||
Commodities purchased from third parties | 140.9 | 0.21 | ||||||||||||||||||||||||||
Operating | (5.1) | (0.01) | ||||||||||||||||||||||||||
Transportation | 0.4 | — | ||||||||||||||||||||||||||
G&A | (13.1) | (0.02) | ||||||||||||||||||||||||||
Interest and financing | 0.3 | — | ||||||||||||||||||||||||||
Current income tax | 15.0 | 0.02 | ||||||||||||||||||||||||||
Realized loss on foreign exchange | (18.5) | (0.03) | ||||||||||||||||||||||||||
Other | 0.1 | — | ||||||||||||||||||||||||||
Weighted average shares, diluted | — | 0.06 | ||||||||||||||||||||||||||
Funds from operations for the three months ended September 30, 2022 | 953.0 | 1.45 |
(1) Per share amounts are based on weighted average diluted common shares. |
Returns to Shareholders
Dividends
Share Repurchases
Physical Marketing
Transportation Expense
Net Debt
Net Income
ESG INITIATIVES
ARC continues to progress various emission reduction technologies at different stages in the life cycle to retain its industry leading ESG position.
CONFERENCE CALL
ARC's senior leadership team will be hosting a conference call to discuss the Company's third quarter 2022 results on Friday, November 4, 2022, at 8:00 a.m. Mountain Time ("MT").
Date | Friday, November 4, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Time | 8:00 a.m. MT | ||||||||||||||||||||||||||||||||||||||||||||||||
Dial-in Numbers | |||||||||||||||||||||||||||||||||||||||||||||||||
Calgary | 587-880-2171 | ||||||||||||||||||||||||||||||||||||||||||||||||
Toronto | 416-764-8659 | ||||||||||||||||||||||||||||||||||||||||||||||||
Toll-free | 1-888-664-6392 | ||||||||||||||||||||||||||||||||||||||||||||||||
Conference ID | 51888129 | ||||||||||||||||||||||||||||||||||||||||||||||||
Webcast URL | https://app.webinar.net/w2XYGn8NL0A | ||||||||||||||||||||||||||||||||||||||||||||||||
Callers are encouraged to dial in 15 minutes before the start time to register for the event. A replay will be available on ARC's website at www.arcresources.com following the conference call.
NON-GAAP AND OTHER FINANCIAL MEASURES
Throughout this news release and in other materials disclosed by the Company, ARC employs certain measures to analyze its financial performance, financial position, and cash flow. These non-GAAP and other financial measures are not standardized financial measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. The non-GAAP and other financial measures should not be considered to be more meaningful than generally accepted accounting principles ("GAAP") measures which are determined in accordance with IFRS, such as net income, cash flow from operating activities, and cash flow used in investing activities, as indicators of ARC's performance.
Non-GAAP Financial Measures
Capital Expenditures
ARC uses capital expenditures to monitor its capital investments relative to those budgeted by the Company on an annual basis. ARC's capital budget excludes acquisition or disposition activities as well as the accounting impact of any accrual changes and payments under certain lease arrangements. The most directly comparable GAAP measure to capital expenditures is cash flow used in investing activities. The following table details the composition of capital expenditures and its reconciliation to cash flow used in investing activities.
Three Months Ended | Nine Months Ended | ||||
($ millions) | June 30, 2022 | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 |
Cash flow used in investing activities | 363.9 | 351.9 | 228.8 | 1,062.5 | 539.4 |
Cash acquired upon close of Business Combination | — | — | — | — | 4.9 |
Acquisition of crude oil and natural gas assets | (0.8) | (1.0) | (0.8) | (2.6) | (0.9) |
Disposal of crude oil and natural gas assets | — | 4.5 | 0.8 | 11.9 | 79.0 |
Long-term investments | (0.1) | (8.6) | — | (8.7) | — |
Change in non-cash investing working capital | (13.8) | 22.1 | 38.2 | (14.4) | 59.0 |
Other (1) | 3.2 | 4.0 | 1.4 | 9.9 | 5.5 |
Capital expenditures | 352.4 | 372.9 | 268.4 | 1,058.6 | 686.9 |
(1) Comprises non-cash capitalized costs related to the Company's right-of-use asset depreciation and share-based compensation. |
Free Funds Flow
ARC uses free funds flow as an indicator of the efficiency and liquidity of ARC's business, measuring its funds after capital investment available to manage debt levels, pay dividends, and return capital to shareholders through share repurchases. ARC computes free funds flow as funds from operations generated during the period less capital expenditures. Capital expenditures is a non-GAAP financial measure. By removing the impact of current period capital expenditures from funds from operations, Management monitors its free funds flow to inform its capital allocation decisions. The most directly comparable GAAP measure to free funds flow is cash flow from operating activities. The following table details the calculation of free funds flow and its reconciliation to cash flow from operating activities.
Three Months Ended | Nine Months Ended | ||||
($ millions) | June 30, 2022 | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 |
Cash flow from operating activities | 1,092.6 | 1,103.6 | 615.0 | 2,955.0 | 1,337.8 |
Net change in other liabilities | 31.2 | 43.3 | 97.3 | 115.3 | 168.4 |
Change in non-cash operating working capital | (94.1) | (193.9) | 53.1 | (344.0) | 75.6 |
Funds from operations | 1,029.7 | 953.0 | 765.4 | 2,726.3 | 1,581.8 |
Capital expenditures(1) | (352.4) | (372.9) | (268.4) | (1,058.6) | (686.9) |
Free funds flow | 677.3 | 580.1 | 497.0 | 1,667.7 | 894.9 |
(1) Certain additional disclosures for these specified financial measures have been incorporated by reference. See "Cash Flow used in Investing Activities, Capital Expenditures, Acquisitions, and Dispositions" in the Q3 2022 MD&A. |
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news release 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 regarding the future based on certain assumptions made by ARC. Although ARC believes that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Forward-looking information in this news release is identified by words such as "anticipate", "believe", "ongoing", "may", "expect", "estimate", "plan", "will", "project", "continue", "target", "strategy", "upholding", or similar expressions, and includes suggestions of future outcomes. In particular, but without limiting the foregoing, this news release contains forward-looking information with respect to: ARC's 2022 guidance, including planned capital expenditures (and the commodity prices at which such capital expenditures are fully funded by funds from operations), production guidance, and expenses; the expectation that transportation costs will decrease over the balance of the year on a per unit basis; statements with respect to the 2023 capital budget including the planned investment and allocation of the 2023 capital budget; the anticipated investments in an expansion at Sunrise and sanctioning Attachie West Phase I, should the regulatory environment in BC support such investment; the expectation that ARC's operating expense per boe will decrease due to higher production volumes; plans to allocate surplus funds from operations to returns to shareholders; the continued assessment of dividends and payment thereof; ARC's plans with respect to growing its dividend and share repurchases under its NCIB; ARC's target net debt to funds from operations ratio at mid-cycle commodity prices; ARC's 2022 and 2023 guidance estimates; and other statements. Further, statements relating to reserves are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably produced in the future. In addition, forward-looking information may include statements attributable to third-party industry sources. There can be no assurance that the plans, intentions, or expectations upon which these forward-looking statements are based will occur.
Readers are cautioned not to place undue reliance on forward-looking information as ARC's actual results may differ materially from those expressed or implied. ARC undertakes no obligation to update or revise any forward-looking information except as required by law. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to ARC and others that apply to the industry generally. The material assumptions on which the forward-looking information in this news release are based, and the material risks and uncertainties underlying such forward-looking information, include: ARC's ability to successfully integrate and realize the anticipated benefits of completed or future acquisitions and divestitures; access to sufficient capital to pursue any development plans; ARC's ability to issue securities and to repurchase its securities under the NCIB; ARC's ability to meet and maintain certain targets, including with respect to emissions-related reductions and ESG performance; expectations and projections made in light of ARC's historical experience; data contained in key modeling statistics; the potential implementation of new technologies and the cost thereof; forecast commodity prices and other pricing assumptions with respect to ARC's 2023 capital expenditure budget; continuing uncertainty of the impact of the June 29, 2021 BC Supreme Court ruling in Blueberry River First Nations (Yahey) v. Province of British Columbia on BC and/or federal laws or policies affecting resource development in northeast BC and potential outcomes of the ongoing negotiations between Blueberry River First Nations and the Government of BC; assumptions with respect to global economic conditions and the accuracy of ARC's market outlook expectations for 2022, 2023 and in the future; suspension of or changes to guidance, and the associated impact to production; the assumption that the regulatory environment will be able to support ARC's investment in the execution of Attachie West Phase I and the Sunrise expansion, including that regulatory authorities in BC will resume granting approvals for oil and gas activities relating to drilling, completions, testing, processing facilities, and production and transportation infrastructure in 2022 on time frames, and terms and conditions, consistent with past practice; forecast production volumes based on business and market conditions; the accuracy of outlooks and projections contained herein; that future business, regulatory, and industry conditions will be within the parameters expected by ARC, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability, and cost of labour and interest, exchange, and effective tax rates; projected capital investment levels, the flexibility of capital spending plans, and associated sources of funding; the ability of ARC to complete capital programs and the flexibility of ARC's capital structure; applicable royalty regimes, including expected royalty rates; future improvements in availability of product transportation capacity; opportunity for ARC to pay dividends and the approval and declaration of such dividends by the Board; the existence of alternative uses for ARC's cash resources which may be superior to payment of dividends or effecting repurchases of outstanding common shares; cash flows, cash balances on hand, and access to ARC's credit facility being sufficient to fund capital investments; foreign exchange rates; near-term pricing and continued volatility of the market; the ability of ARC's existing pipeline commitments and financial risk management transactions to partially mitigate a portion of ARC's risks against wider price differentials; business interruption, property and casualty losses, or unexpected technical difficulties; estimates of quantities of crude oil, natural gas, and liquids from properties and other sources not currently classified as proved; accounting estimates and judgments; future use and development of technology and associated expected future results; ARC's ability to obtain necessary regulatory approvals generally; potential regulatory and industry changes stemming from the results of court actions affecting regions in which ARC holds assets; risks and uncertainties related to oil and gas interests and operations on Indigenous lands; the successful and timely implementation of capital projects or stages thereof; the ability to generate sufficient cash flow to meet current and future obligations; estimated abandonment and reclamation costs, including associated levies and regulations applicable thereto; ARC's ability to obtain and retain qualified staff and equipment in a timely and cost-efficient manner; ARC's ability to carry out transactions on the desired terms and within the expected timelines; forecast inflation and other assumptions inherent in the guidance of ARC; the retention of key assets; the continuance of existing tax, royalty, and regulatory regimes; GLJ Ltd.'s estimates with respect to commodity pricing; ARC's ability to access and implement all technology necessary to efficiently and effectively operate its assets; the ongoing impact of the COVID-19 pandemic on commodity prices and the global economy; and other assumptions, risks, and uncertainties described from time to time in the filings made by ARC with securities regulatory authorities.
The forward-looking information contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information included in this news release are made as of the date of this news release and, except as required by applicable securities laws, ARC undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise.
About ARC
ARC Resources Ltd. is a pure-play Montney producer and one of Canada's largest dividend-paying energy companies, featuring low-cost operations and leading ESG performance. ARC's investment-grade credit profile is supported by commodity and geographic diversity and robust risk management practices around all aspects of the business. ARC's common shares trade on the Toronto Stock Exchange under the symbol ARX.
ARC RESOURCES LTD.
Please visit ARC's website at www.arcresources.com or contact Investor Relations:
E-mail: [email protected]
Telephone: (403) 503-8600
Fax: (403) 509-6427
Toll Free: 1-888-272-4900
ARC Resources Ltd.
Suite 1200, 308 - 4 Avenue SW
Calgary, AB T2P 0H7
SOURCE ARC Resources Ltd.
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