Sustainability Performance Table

In keeping with ARC’s commitment to deliver high-quality disclosure and corporate reporting, go forward we will be providing updated Sustainability Performance KPI’s on an annual basis. This data is made available to complement our biennial Sustainability Report and to assist stakeholders in their analysis of ARC’s corporate performance. For full discussion of ARC’s strategy and philosophy in regards to Sustainability please view our 2014 Sustainability Report.

[ACCORDION]

(1) From 2007 to 2010 water use is based on usage from licenses in Alberta and Saskatchewan and includes water used for voidage replacement. In 2011 ARC expanded how water usage is measured to capture wellsite usage.
(2) All dollar values are shown in Cdn$ millions.       
(3) Excludes corporate acquisitions and property acquisitions net of property dispositions.       
(4) Prior to January 1, 2011 payment to shareholders were in the form of distributions.       
(5) Total employee compensation costs included in the operating and general and administrative expense line items in the statements of income.       
(6) Contributions to charitable and non-profit organizations.       
*NPR: Not Previously Reported

Energy Consumption
In 2014, ARC’s energy consumption increased approximately 20 per cent relative to 2013 levels. The increase in energy consumption is the result of a 17 per cent increase in total production over the same period. On a per boe basis, ARC’s production energy intensity increased eight per cent in 2014 relative to 2013. The 2014 emissions intensity was six per cent below ARC’s baseline 2010 levels, while total production increased 52 per cent over the same period. The decrease was largely the result of a continued focus on operational efficiencies and the utilization of low emissions technology across ARC’s operations.

Emissions
Flared Gas
Flared gas volumes decreased 17 per cent in 2014 compared to 2013, and were at the lowest level since 2010. The decrease in flared gas is largely the result of increased inline well testing. Where infrastructure is available and the production mix is conducive, ARC uses inline testing on new wells wherever possible.
In 2014, ARC reported a higher volume of vented gas compared to 2013. The larger volume is the result of the implementation of new methodology that is capturing larger amounts of data, not due to a change in ARC’s operations.

Water Use
ARC’s fresh water withdrawal increased 45 per cent in 2014 compared to 2013. The increase is the result of improved water reporting systems, an increase in total wells drilled and the adoption of slickwater frac technology in key operating areas.  Slickwater fracs require a greater volume of water compared to other fracturing methods, however they use significantly fewer chemicals and allow for the reuse of flowback water in subsequent operations. In 2014, ARC increased flowback water reuse by 245 per cent compared to 2013.  
Water management is a critical element of ARC’s long-term development plans, specifically in regards to the development of the Montney resource in northeast British Columbia.  ARC has a water management plan in place for the Montney, which considers local and regional demands in context with ARC’s own development plans, employs alternative sourcing methods, water management infrastructure and flowback water reuse.

Health and Safety
Lost-time frequency and recordable frequency for contractors both increased in 2014, while comparable employee metrics stayed flat. Safety is a top priority and ARC has taken steps in 2015 to ensure our systems and expectations are aligned with service providers.

  • Production

      2009 2010 2011 2012 2013 2014 G3.1 Indicator
    Production (boe/d) 63,538 73,954 83,416 93,546 96,087 112,387  

     

  • Environment

      2009 2010 2011 2012 2013 2014 G3.1 Indicator
    Environment
    Energy Consumption (GJ) 7,104,648 8,257,576 8,554,136 9,361,557 9,082,501 10,963,442 EN3
    Production Energy Intensity (GJ/m3OE) 1.97 1.90 1.78 1.74 1.66 1.79  
    Greenhouse Gas Emissions
    Direct (CO2e tonnes/year) 445,054 537,507 506,467 572,777 642,890 763,457 EN16
    Indirect (CO2e tonnes/year) 360,924 353,478 393,817 426,087 402,479 390,485 EN16
    Intensity (CO2e/m3OE) 0.224 0.205 0.188 0.180 0.191 0.188 EN16
    SO2 (tonnes/year) 2,663 2,688 2,521 3,100 2,979 3,313 EN20
    Flared Gas (103m3/year) 23,351 28,412 38,316 47,816 43,987 36,596 OG6
    Vented Gas (103m3/year) 623 655 637 959 1,746 2,071 OG6
    Solution Gas Conversion Rate (%) 95.9 96.7 94.9 93.6 94.8 96.4  
    Water (1)
    Fresh Water Withdrawal (m3/y) 609,933 666,700 813,546 934,264 817,214 1,184,808 EN8
    Non-fresh Water Withdrawal (m3/y) NPR NPR 1,106 9,830 32,842 13,602 EN8
    Flowback Generated (m3/y) NPR NPR NPR 30,131 62,206 97,740 EN8
    Flowback Reused (m3/y) NPR NPR NPR 3,646 317 78,106 EN10
    Reclamation
    Number of Producing Wells (gross) 16,979 17,270 16,320 10,651 10,520 8,875  
    Number of Non-producing Wells (gross) 1,870 1,939 1,984 1,773 1,606 1,502  
    Active Reclamation Ongoing 240 237 271 274 235 173 EN13
    Certificates Received 3 8 5 8 8 21 EN13
    Spills and Leaks
    Number of Reportable Spills 21 61 91 48 66 48 EN23
    Total Volume (m3) 293 522 1,033 150 390 107 EN23
    Number of Fines and Penalties 0 0 0 0 0 0  

     

  • Health and Safety

      2009 2010 2011 2012 2013 2014 G3.1 Indicator
    Lost-time frequency - Employee 0.22 0.18 0.19 0 0.16 0.16 LA7
    Lost-time frequency - Contractor 0.2 0.5 0.21 0.11 0.04 0.37 LA7
    Recordable frequency - Employee 1.32 0.59 0.95 0.73 0.49 0.48 LA7
    Recordable frequency - Contractor 1.77 2.41 2.44 1.59 1.2 1.84 LA7
    Fatalities - Employee/Contractor 0 0 0 0 0 0 LA7

     

  • Social

      2009 2010 2011 2012 2013 2014 G3.1 Indicator
    Workforce Profile
    Full-time 427 465 511 523 542 578 LA1
    Part-time 23 25 23 24 24 25 LA1
    Contractors and Temporary Employees NPR NPR NPR 66 54 57 LA1
    Diversity - Permanent only (%)
    Men in Workforce 62 64 65 63 64 67 LA13
    Women in Workforce 38 36 35 37 36 33 LA13
    Management and Executive Team Gender Ratio (%)
    Male 70 76 72 76 66 76 LA13
    Female 30 24 28 24 34 24 LA13
    Supervisory/Professional Position Gender Ratio (%)
    Male 66 67 64 60 62 50 LA13
    Female 34 33 36 40 38 50 LA13
    Board of Directors Gender Ratio (%)
    Male 87 89 89 87 89 90 LA13
    Female 13 11 11 13 11 10 LA13
    ARC Turnover (%) 4.35 5.51 5.63 6.5 4.7 3.8 LA2
    Employees by Location
    Field (Permanent) NPR NPR NPR 220 230 257 LA1
    Office (Permanent) NPR NPR NPR 327 336 346 LA1
    Field (Contractors and Temporary) NPR NPR NPR 24 20 18 LA1
    Office (Contractors and Temporary) NPR NPR NPR 42 34 39 LA1

     

  • Economic

    Economic(2) 2009 2010 2011 2012 2013 2014 G3.1 Indicator
    Revenues 978.2 1,213.7 1,438.2 1,389.4 1,624.3 2,107.7 EC1
    Royalties 147.8 192.8 219.3 195.7 223.1 298.0 EC1
    Capital Expenditures(3) 359.6 590.9 726.0 608.0 874.2 1,007.8 EC1
    Dividends(4) 298.5 313.5 344.0 357.4 374.0 380.2 EC1
    Net Income 225.1 212.2 287.0 139.2 240.7 380.8 EC1
    Funds from Operations 497.4 667.0 844.3 719.8 861.8 1,124.0 EC1
    Capital and Other Taxes 16.5 16.3 16.4 16.3 17.9 19.6 EC1
    Total Royalty and Lease Rentals
    Canadian Royalties 147.8 192.8 219.3 195.7 223.1 298.0 EC1
    Crown Royalties 115.3 151.2 172.1 142.0 187.3 294.9 EC1
    Freehold Royalties 19.2 21.5 22.4 24.4 26.6 22.9 EC1
    Crown Surface Lease Rental 1.3 1.4 1.6 1.5 1.0 0.9 EC1
    Stakeholder Economic Benefits
    Employee Payroll and Benefits(5) 64.5 99.1 97.0 117.4 128.5 119.7 EC1
    Operating Expenses 236.2 261.9 295.3 321.8 338.7 364.2 EC1
    Community Investment(6) 1.6 1.6 2.0 3.2 2.3 2.1 EC1

     

ARC Resources Ltd.

1200, 308 - 4th Avenue S.W. Calgary, Alberta, Canada T2P 0H7

Tel: 403-503-8600 Toll Free: 1-888-272-4900