First Quarter 2014 Operations Review
- ARC achieved record first quarter production of 105,699 boe per day, 11 per cent higher than the first quarter of 2013 and five per cent higher than the fourth quarter of 2013. Higher production was primarily attributed to production from new wells at Parkland/Tower and Ante Creek.
- Production at Parkland/Tower averaged 16,600 boe per day in the first quarter of 2014, 84 per cent higher than the first quarter of 2013 and 33 per cent higher than the fourth quarter of 2013.
- First quarter 2014 commodity sales revenue of $551.4 million was up 46 per cent relative to the first quarter of 2013 due to higher production and higher realized crude oil and natural gas prices. ARC's realized crude oil and natural gas prices increased 15 per cent and 66 per cent, respectively, relative to the first quarter of 2013.
- First quarter funds from operations were a record $292.3 million ($0.93 per share), up 44 per cent from the first quarter of 2013. The increase in first quarter funds from operations was primarily due to higher production and higher crude oil and natural gas prices in 2014.
- ARC drilled 60 gross operated wells in the first quarter of 2014 (43 oil wells, nine liquids-rich natural gas wells and eight natural gas wells).
- ARC closed the quarter with a strong balance sheet including total credit facilities of $2 billion and debt of $989 million drawn. ARC had available credit of approximately $1 billion after a working capital deficit. Net debt to 2014 annualized funds from operations ratio was 0.9 times and net debt was approximately ten per cent of ARC's total capitalization at the end of the first quarter; both metrics are well within ARC's target levels.
Q4 2013 Production
(Three Months ended March 31, 2014)
|Crude Oil (bbl/d)||37,478||32,505|
|Natural gas (mmcf/d)||369.6||348.6|
|Natural Gas Liquids (bbl/d)||3,743||2,831|
|Total Production (boe/d)||105,699||95,472|
The following table summarizes the companies production by core area for three months ended March 31,2014:
|Core Area (1)||Total (boe/d)||Oil (bbl/d)||Condensate (bbl/d)||Gas (mmcf/d)||NGL (bbl/d)|
|South Central AB||11,273||4,858||77||36.6||241|
|Southeast SK & MB||11,088||10,791||24||1.2||68|
(1) Provincial and directional references: AB is Alberta, BC is British Columbia, SK is Saskatchewan, MB is Manitoba, NE is northeast, NW is northwest, SE is southeast and SW is southwest.