July 11, 2021 marks a significant milestone in our history – 25 years of ARC Resources. Since the company’s inception in 1996, ARC has experienced significant growth and persevered through various challenges and changing environments to become Canada’s sixth-largest energy company and a leader in responsible development.
Our accomplishments over the past two-and-a-half decades can be attributed to our guiding principles of capital discipline, risk-managed value creation and a long-term focus on profitability, which were established in the early years and still guide our company today. Our longevity and achievements can also be attributed to the numerous people of ARC, whose many contributions have shaped who we are today.
Watch Video: Celebrating ARC’s Past
Our story can be broken down into three distinct chapters – The Early Years: ARC Energy Trust, Transitioning to a New Corporate Structure and The Strategic Combination with Seven Generations Energy.
ARC 1.0 – The Early Years: ARC Energy Trust
The company was founded by Mac Van Wielingen and John Dielwart with the acquisition of 21 properties from Mobil Oil Canada. At the time, this was a significant accomplishment that provided the company with long-life, high-quality assets on which to build the company. Established first as an income trust – a relatively new business model in the energy sector – ARC Energy Trust successfully completed its initial IPO of 18 million units priced at $10 per share, raising a total of $180 million. At the time, 100% of the equity raised came exclusively from retail investors. On July 11, 1996, ARC began trading on the TSX under the symbol AET.UN.
What followed was a period of risk-managed, strategic and profitable growth with acquisitions including Starcor Energy Royalty Fund, Orion Energy Trust, assets at Ante Creek, Startech Energy Inc., and finally, Star Oil and Gas Ltd., which established a significant presence in the Montney with the Dawson gas field.
ARC 2.0 – Transitioning to a New Corporate Structure
In 2006, following the Canadian federal government’s announcement of a new tax on royalty trusts, ARC began shifting from its trust model to implementing a standard corporate structure.
At the same time, we began to sharpen our focus on our newer, unconventional assets in the Montney, a vast and exciting play we had just begun to unlock through our innovative completion technology for horizontal wells. This involved additional acquisitions of land holdings in the area, divestitures of legacy assets, and a deliberate focus on enhancing our presence in the Montney, where we see the future of the company.
ARC 3.0 – Strategic Combination with Seven Generations
These efforts culminated in 2021 when we announced and completed our strategic business combination with Seven Generations Energy. Through the acquisition, ARC has now become Canada’s Premier Montney Company and the nation’s largest producer of condensate, third largest natural gas producer and sixth largest energy company.
With our new scale and relevance, guided by the same principles that the company was first founded on, ARC Resources is now poised to write the next chapter in our growing Canadian energy story.