Fourth Quarter 2014 Operations Review
- ARC achieved record fourth quarter production of 117,986 boe per day, 17 per cent higher than the fourth quarter of 2013 and two per cent higher than the third quarter of 2014. Full year production of 112,387 boe per day was 17 per cent higher than 2013.
- ARC's fourth quarter oil and liquids production of 45,965 barrels per day was 12 per cent higher than the fourth quarter of 2013 and full year liquids production was a record 44,710 barrels per day, 18 per cent higher than 2013.
- Construction began on the new 60 mmcf per day Sunrise gas processing facility in the fourth quarter of 2014. Construction is on schedule and on budget, with major equipment arriving on site throughout the fourth quarter. ARC plans to commission the new facility in the fourth quarter of 2015 and expects to fill the facility by early 2016. See Sunrise Photo Blog for construction updates.
- Fourth quarter funds from operations were $251.7 million ($0.79 per share), up six per cent from the fourth quarter of 2013. Full year 2014 funds from operations of $1,124.0 million ($3.54 per share) were up 30 per cent from 2013.
Fourth quarter and full year 2014 capital expenditures totaled $249.3 million and $945.5 million, respectively. ARC's capital program focused primarily on oil and liquids-rich opportunities at Parkland/Tower, Ante Creek, Pembina, and southeast Saskatchewan along with spending on natural gas development at Dawson and Sunrise. ARC drilled 34 gross operated wells in the fourth quarter of 2014 (30 oil wells, three liquids-rich natural gas wells and one natural
gas wells) and 187 gross operated wells (139 oil wells, 22 liquids-rich natural gas wells and 26 natural gas wells) in 2014.
- ARC completed $134 million of land purchases and “tuck-in” land and infrastructure acquisitions in key development areas during 2014. In the Montney region, ARC grew its land position by approximately 120 net sections in 2014.
- ARC's operating costs per boe continue to trend downward as our low cost Montney production represents a greater percentage of our total production. Fourth quarter operating costs of $8.55 per boe were down seven per cent from $9.21 per boe in the fourth quarter of 2013 and full year 2014 operating costs of $8.88 per boe were down eight per cent relative to 2013.
Q4 2014 Production
(Three Months ended December 31, 2014)
|Crude Oil (bbl/d)||37,442||35,542|
|Natural gas (mmcf/d)||432.1||359.4|
|Natural Gas Liquids (bbl/d)||5,075||2,868|
|Total Production (boe/d)||117,986||100,883|
The following table summarizes the companies production by core area for three months ended December 31,2014:
|Core Area (1)||Total (boe/d)||Oil (bbl/d)||Condensate (bbl/d)||Gas (mmcf/d)||NGL (bbl/d)|
|South Central AB||8,645||4,542||60||23.0||213|
|Southeast SK & MB||11,015||10,701||53||1.0||88|
(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.