Strategic Montney Combination - ARC & 7G

ARC Resources and Seven Generations Energy

On April 6, 2021, ARC Resources Ltd. ("ARC" or the "Company") closed its strategic Montney combination with Seven Generations Energy Ltd. ("Seven Generations") to create the premier Montney producer and leader in responsible energy development (the "Business Combination"). ARC is now Canada’s largest condensate producer, third-largest natural gas producer, and sixth-largest upstream energy company.

As the largest pure-play Montney producer, ARC owns over 1.1 million net acres of Montney land and has a deep inventory of high-return, de-risked core development opportunities with significant commodity and geographic diversity. ARC produces approximately 340,000 boe per day, comprising approximately 138,000 barrels per day of liquids and approximately 1.2 billion cubic feet Bcf per day of natural gas. The Company’s low cost structure, excellent ESG performance, and superior ability to optimize revenue streams are supported by an extensive network of owned-and-operated infrastructure, with natural gas processing and sales capacity totaling approximately 1.5 Bcf per day. Exercising capital discipline, operating safely and efficiently, maintaining a top-decile balance sheet, and executing an active commodity price risk management program continue to be hallmarks of the organization.

With its compelling ability to generate free funds flow, low debt levels, leading ESG performance, and a sustainable dividend, ARC is a differentiated investment opportunity with significant optionality for future capital allocation, positioned to create significant shareholder value in 2021 and beyond.

The Business Combination was structured through a plan of arrangement under the Canada Business Corporations Act, where Seven Generations shareholders received 1.108 common shares of ARC for each class "A" common share of Seven Generations (a "7G Share") held. The 7G Shares are expected to be delisted from the Toronto Stock Exchange on or before April 9, 2021.

Related Documents

ARC Resources and Seven Generations Energy Transaction Presentation

February 10, 2021 - ARC Resources and Seven Generations Energy Announce Strategic Montney Combination

March 1, 2021 - ARC Resources and Seven Generations to Hold Special Shareholder Meetings on Proposed Business Combination

March 4, 2021 - ARC Resources Ltd. Announces Offering of Senior Unsecured Notes

March 10, 2021 - ARC Resources Ltd. Announces the Closing of Its Offering of Unsecured Notes

March 31, 2021 - ARC Resources and Seven Generations Announce Shareholder and Court Approval of Strategic Montney Combination

April 6, 2021 - ARC Resources Closes Strategic Montney Combination with Seven Generations