Capital Budget

2017 – Focused on Continued Long-term Value Creation and Balance Sheet Strength

  • The 2017 capital budget has been set at $665 million, and is focused on balance sheet strength and long-term value creation;
  • ARC has provided a 2017 production target of 128,000 to 133,000 boe per day
  • Approximately $570 million (85 per cent of the budget) will be invested in high-netback oil and liquids-rich natural gas development, including drilling programs at Parkland/Tower, Pembina, and Ante Creek;
  • Approximately $70 million (10 per cent of capital program) in our best-in-class, high-rate-of-return Montney natural gas assets to exploit our significant natural gas resource base, including preparing our Dawson asset for its next phase of growth;
  • As part of the $570 million allocated for crude oil and liquids-rich natural gas development and the $70 million allocated for natural gas development, ARC plans to invest approximately $175 million (25 per cent of capital program) in strategic infrastructure spending to complete and commission the gas processing and liquids-handling facility at Dawson and to proceed with plans for the gas processing and liquids-handling facility expansion at Parkland/Tower;
  • ARC plans to drill 103 gross operated wells across our portfolio;
  • Crude oil and liquids production is expected to be in the range of 42,400 to 46,200 bbls per day in 2017;
  • Natural gas production is expected to be in the range of 510 to 520 MMcf per day in 2017;
  • ARC will maintain a focus on cost management, targeting 2017 operating costs in the range of $6.80 to $7.20 per boe;
  • ARC plans to maintain the current monthly dividend of $0.05 per share based on, among other things, the current outlook for crude oil and natural gas prices and ARC's hedge positions.

Additional details on ARC's Capital Budget can be found in the news release below:

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ARC Resources Ltd.

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

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