Sustainability Performance Table

ARC is committed to providing our stakeholders with up-to-date information on our performance.  While we publish a fulsome corporate sustainability report biennially, this page provides updated 2016 environment, social and governance performance data and discussion around key metrics. For a full discussion of ARC’s approach to sustainability and management of performance, please view the 2016 Sustainability Report at www.arcresponsibility.com.

Performance Table

[ACCORDION]

Discussion of Key Results

Emissions Management
In 2016, across almost every metric ARC realized lower absolute emissions and emission intensities relative to 2015 levels. Divestment of non-core properties was the major driver of the reductions in 2016, with the sale of approximately 8,800 boe per day of non-core properties throughout the year. Continued strong energy and emission intensity performance is expected in coming years, as ARC remains focused on managing pace of development, implementing low emissions technology, and improving operational efficiencies.  ARC plans to electrify its Parkland and Sunrise processing facilities with connection to BC Hydro in 2018 and 2020, respectively, which will reduce the overall carbon footprint of the facilities and enhance operational efficiencies.

Click here for more information on how ARC is managing GHG emissions across its operations.

Water Use
ARC reduced its fresh water use across its operations in 2016, with total fresh water withdrawal decreasing by 17 per cent relative to 2015 volumes. Enhanced use of saline and non-fresh water in completions activities, as well as contiguous drilling and completions operations in high activity areas were major drivers in the reduction. Planning drilling and completions operations to be contiguous has enabled ARC to optimize the use of recycled frac water and limit the volume of flowback disposed in Montney operations. Through 2017 and 2018, ARC will continue to advance its water management plan, including capital investment for a flowback water recycling facility at Parkland.

Click here to learn more about ARC’s responsible water use practices.

Reclamation
The total gross wells (producing and non-producing) decreased in 2016 by 35 per cent, largely as an outcome of divestment activities during the year. Over the past two years, ARC has taken advantage of slower industry activity to counter-cyclically increase its focus on reclamation activities. In 2016, this resulted in an 87 per cent year-over-year increase in the number of active reclamation sites ongoing, and a 60 per cent year-over-year increase in reclamation certificates received.

Click here to see ARC’s historical reclamation performance.

Spills
In 2016, ARC regrettably experienced higher reportable spill volumes relative to 2015. In all incidences, spills were addressed immediately, and the health and safety of residents, wildlife and the environment was the primary focus. ARC works to continually evolve our systems and processes with the aim of improving performance. Part of this process includes investigations of each incident to identify and implement necessary changes to avoid future incidents. Additionally, ARC has systems in place to inspect and audit our assets and facilities on an ongoing basis, and emergency response and spill plans in all operating areas.

Click here to learn about the measures ARC takes to prevent spill and mitigate their impact.

Health & Safety
ARC had a year of strong health and safety performance in 2016. Notably, there were zero lost-time incidents for employees and contractors. While this is the second year in a row that ARC employees have achieved outstanding safety performance with zero lost-time incidents, contractor rates decreased significantly in 2016 relative to 2015. The improvement is largely an outcome of an increased focus on working with contractors to improve the safety of operations, as well as enhancements to the contractor management system and processes, including increased training and routine audits.

To learn more about ARC’s health and safety management program click here.

Workforce Profile
In 2016, ARC’s total permanent workforce was reduced by 17 per cent. The reduction was largely the result of streamlining of ARC’s workforce following asset divestments, as well as an enhanced focus on efficiencies across the organization.

  • Production

      2012 2013 2014 2015 2016
    Production (boe/d) 93,546 96,087 112,387 114,167 118,671

     

  • Environment

      2012 2013 2014 2015 2016
    Environment  
    Direct Energy Consumption (GJ) 9,361,557 9,082,501 10,963,442 10,504,502 10,277,582
    Production Energy Intensity (GJ/m3OE) 1.74 1.66 1.79 1.67 1.53
    Greenhouse Gas Emissions  
    Direct (CO2e tonnes) 572,777 642,890 763,457 727,207 641,337
    Indirect (CO2e tonnes) 426,087 402,479 390,485 351,649 339,757
    Intensity (tonnes CO2e/m3OE) 0.180 0.191 0.188 0.171 0.146
    Flared Gas (thousand m3) 47,816 43,987 36,596 32,327 22,263
    Vented Gas (thousand m3) 959 1,746 2,071 2,813 2,266
    Solution Gas Conversion Rate (%) 93.6 94.8 96.4 96.5 97.8
    Sulfur Dioxide (SO2) (tonnes) 3,100 2,979 3,313 3,082 2,482
    Methane (tonnes) NPR NPR 11,816 11,046 8,101
    Nitrogen Oxide (NOx) (tonnes) NPR NPR NPR 3,049 3,273
    Water  
    Fresh Water Withdrawal (m3) (1) 934,264 817,214 1,184,808 1,393,099 1,153,756.4
    Non-fresh Water Withdrawal (m3) (2) 9,830 32,842 13,602 91,934 128,927
    Fresh Water Used in Montney (m3) NPR NPR 543,146 715,936 390,536
    Saline Recycled (m3) (3) NPR NPR 90,008 119,313 121,993
    Disposal Water (m3) (4) NPR NPR 14,667 21,489 2,590
    Reclamation  
    Number of Producing Wells (gross) 10,651 10,520 8,875 5,651 3,383
    Number of Non-producing Wells (gross) 1,773 1,606 1,502 1,703 1,371
    Sum Total 12,424 12,126 10,377 7,354 4,754
    Active Reclamation Ongoing 274 235 173 206 386
    Certificates Received 8 8 21 28 45
    Spills and Leaks  
    Number of Reportable Spills 58 67 47 24 27
    Reportable Non-pipeline spills 17 24 33 12 15
    Reportable Pipeline Spills 41 43 14 12 10
    Total Volume of Reportable Spills (m3) 575.9 1,068.4 781.1 304.6 772.95
    Volume of Non-pipeline Spills (m3) 309.1 681.7 647.5 156.0 510.90
    Volume of Pipeline Spills (m3) 266.8 386.7 106.6 148.6 262.05
    Pipeline Incident Rate (km) 6.9 5.8 3.2 2.0 2.0
    Number of Fines and Penalties 0 0 0 0 0

     

  • Health and Safety

      2012 2013 2014 2015 2016
    Lost-time frequency - Employee 0 0.16 0.16 0 0
    Lost-time frequency - Contractor 0.11 0.04 0.37 0.18 0
    Recordable frequency - Employee 0.73 0.49 0.48 0.32 0.40
    Recordable frequency - Contractor 1.59 1.2 1.84 1.47 0.78
    Fatalities - Employee/Contractor 0 0 0 0 0

     

  • Social

      2012 2013 2014 2015 2016
    Workforce Profile
    Full-time 523 542 578 556 461
    Part-time 24 24 25 4 3
    Contractors and Temporary Employees 66 54 57 60 54
    Employees By Location
    Field (Permanent) 220 230 257 243 203
    Office (Permanent) 327 336 346 317 261
    Field (Contractors and Temporary) 24 20 18 25 19
    Office (Contractors and Temporary) 42 34 39 35 35
    Gender Diversity - Permanent Only (%)
    Women in Workforce 37 36 33 32 30
    Supervisory/Professional Positions 40 38 50 48 49
    Management and Executive Team 24 25 24 25 24
    Board of Directors 13 11 10 20 18
    Employee Age Categories
    30 Years and Under NPR NPR NPR 114 84
    30 to 50 NPR NPR NPR 339 283
    50 Plus NPR NPR NPR 107 97
    Voluntary Turnover (%) 6.5 4.7 3.8 2.8 1.2
    Total Spending on Training ($) NPR 1,200,000 1,765,280 1,653,822 876,844
    Spending per Employee ($) NPR 2,120 2,927 2,953 1,768

     

  • Economic

    Economic(5) 2012 2013 2014 2015 2016
    Revenues 1,389.4 1,624.3 2,107.7 1.193.7 1,063.5
    Royalties 195.7 223.1 298.0 103.3 89.0
    Capital Expenditures(6) 608.0 874.2 1,007.8 548.3 456.1
    Dividends 357.4 374.0 380.2 410.5 228.2
    Net Income (Loss) 139.2 240.7 380.8 (342.7) 201.3
    Funds from Operations 719.8 861.8 1,124.0 773.4 633.3
    Capital and Other Taxes 16.3 17.9 19.6 17.5 16.7
    Total Royalty and Lease Rentals
    Canadian Royalties 195.7 223.1 298.0 103.3 89.0
    Crown Royalties 142.0 167.0 251.9 81.4 88.4
    Freehold Royalties 24.4 26.6 22.9 11.0 5.7
    Crown Surface Lease Rental 1.5 1.0 0.9 0.8 0.8
    Stakeholder Economic Benefits
    Employee Payroll and Benefits(7) 117.4 128.5 119.7 96.1 112.6
    Operating Expenses 321.8 338.7 364.2 298.0 289.0
    Payments to Providers of Capital NPR NPR 47.3 51.0 50.5
    Community Investment(8) 3.2 2.3 2.1 1.6 1.5

     

  • Table Notes

    (1) Fresh water includes water sourced from rivers, streams, creeks, lakes, dugouts, water wells and town water.
    (2) Non-fresh water includes water sourced from flowback, produced water and third party produced water accepted.

    (3) Includes ARC produced water as well as third party produced water accepted. Captures Montney operations only.
    (4) Figure captures water disposal in ARC's Montney operations only.
    (5) All dollar values are shown in Cdn$ millions.
    (6) Excludes corporate acquisitions and property acquisitions net of property dispositions.       
    (7) Total employee compensation costs included in the operating and general and administrative expense line items in the statements of income.       
    (8) Contributions to charitable and non-profit organizations.       
    *NPR: Not Previously Reported

     

ARC Resources Ltd.

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

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