Capital Budget

2016 – Focused on Continued Long-term Value Creation and Balance Sheet Strength

  • The 2016 capital budget has been set at $550 million, and is focused on balance sheet strength and long-term value creation;
  • ARC has provided a 2016 production target of 119,000 to 124,000 boe per day, representing approximately five per cent year-over-year production growth;
  • Approximately $340 million (60 per cent of the budget) will be invested in high-netback oil and liquids-rich natural gas development to grow high value liquids production and continue to advance learnings at Attachie and Ante Creek;
  • Approximately $100 million (20 per cent of the budget) will be invested in ARC’s best in class, high rate of return Montney natural gas assets, exploiting ARC’s significant natural gas resource base and grow natural gas production;
  • Approximately $90 million (15 per cent of the budget) will be invested in strategic infrastructure spending to proceed with plans to develop a new gas processing and liquids-handling facility at Dawson;
  • Approximately $125 million of planned investment in Alberta is subject to re-allocation should changes to the Alberta royalty framework materially impact well economics;
  • ARC plans to drill 77 gross operated wells across our portfolio;
  • Crude oil and liquids production is expected to grow five per cent to between 41,000 to 45,000 bbls per day in 2016;
  • Natural gas production is expected to grow five per cent to between 465 to 475 mmcf per day in 2016;
  • ARC will maintain a focus on cost management, targeting 2016 operating costs in the range of $7.70 to $8.10 per boe
  • ARC plans to maintain the current monthly dividend of $0.10 per share given 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:

[FILELISTING]

Corporate review - 2016 Capital Program

 

ARC Resources Ltd.

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

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