ARX:

Sustainability

Sustainability Reports

ARC is committed to building a sustainable business with a long-term vision. We look for the most efficient way to produce energy, create long-term value for our shareholders and support the economic and social well-being of the communities that we work in. Strong environmental, social and governance performance has been achieved as an outcome of this vision and strategy. Responsible development has shaped the company we are today and underpins our thinking for continued long-term success.

We publish a biennial Sustainability Report as a means to measure and report on our performance and continuously look for ways to improve. We invite you to explore current and past reports to learn more about ARC’s performance and sustainability initiatives.

Performance Tables

  • Production

    2013

    2014

    2015

    2016

    2017

    Production (boe/d)

    96,087

    112,387

    114,167

    118,671

    122,937

  • Environment

    2013

    2014

    2015

    2016

    2017

    Environment

    Direct Energy Consumption (GJ)

    9,082,501

    10,963,442

    10,504,502

    10,277,582

    11,041,628

    Production Energy Intensity (GJ/m3OE)

    1.66

    1.79

    1.67

    1.53

    1.59

    Greenhouse Gas Emissions

    Direct (CO2e tonnes)

    642,890

    763,457

    727,207

    641,337

    685,432

    Indirect (CO2e tonnes)

    402,479

    390,485

    351,649

    339,757

    326,013

    Intensity (Scope 1 and Scope 2) (1) (tonnes CO2e/m3OE)

    0.030

    0.028

    0.026

    0.023

    0.023

    Flared Gas (thousand m3)

    43,987

    36,596

    32,327

    22,263

    24,711

    Vented Gas (thousand m3)

    1,746

    2,071

    2,813

    2,266

    1,733

    Solution Gas Conversion Rate (%)

    94.8

    96.4

    96.5

    97.8

    99.0

    Sulfur Dioxide (SO2) (tonnes)

    2,979

    3,313

    3,082

    2,482

    778

    Methane (tonnes)

    NPR

    11,816

    11,046

    8,101

    7,525

    Nitrogen Oxide (NOx) (tonnes)

    NPR

    NPR

    3,049

    3,273

    4,072

    Water

    Fresh Water Withdrawal (m3) (2)

    817,214

    1,184,808

    1,393,099

    1,153,756.4

    1,788,480

    Non-fresh Water Use (m3) (3)

    294,944

    499,927

    573,074

    560,490

    601,005

    Reclamation

    Number of Producing Wells (gross)

    10,520

    8,875

    5,651

    3,383

    3,326

    Number of Non-producing Wells (gross)

    1,606

    1,502

    1,703

    1,371

    1.442

    Active Reclamation Ongoing

    235

    173

    206

    386

    262

    Certificates Received

    8

    21

    28

    45

    24

    Spills and Leaks

    Number of Reportable Spills

    67

    47

    24

    25

    21

    Reportable Non-pipeline Spills

    24

    33

    12

    15

    12

    Reportable Pipeline Spills

    43

    14

    12

    10

    9

    Total Volume of Reportable Spills (m3)

    1,068

    781

    305

    773

    609

    Volume of Non-pipeline Spills (m3)

    682

    675

    156

    511

    134

    Volume of Pipeline Spills (m3)

    387

    107

    149

    262

    475

    Pipeline Incident Rate (km)

    5.80

    3.20

    1.97

    1.98

    1.95

    Number of Fines and Penalties

    0

    0

    0

    0

    0

  • Health and Safety

    2013

    2014

    2015

    2016

    2017

    Lost-time Frequency - Employee

    0.16

    0.16

    0.00

    0.00

    0.00

    Lost-time Frequency - Contractor

    0.04

    0.37

    0.18

    0.00

    0.08

    Recordable Frequency - Employee

    0.49

    0.48

    0.32

    0.40

    0.64

    Recordable Frequency - Contractor

    1.20

    1.84

    1.47

    0.78

    0.83

    Fatalities - Employee/Contractor

    0

    0

    0

    0

    0

  • Social

    2013

    2014

    2015

    2016

    2017

    Workforce Profile

    620

    660

    620

    518

    519

    Full-time

    542

    578

    556

    461

    470

    Part-time

    24

    25

    4

    3

    1

    Contractors and Temporary Employees

    54

    57

    60

    54

    48

    Employees by Location

    Field (Permanent)

    230

    257

    243

    203

    217

    Office (Permanent)

    336

    346

    317

    261

    254

    Field (Contractors and Temporary)

    20

    18

    25

    19

    20

    Office (Contractors and Temporary)

    34

    39

    35

    35

    28

    Gender Diversity - Permanent Only (%)

    Women in Workforce

    36

    33

    32

    30

    27

    Supervisory/Professional Positions

    38

    50

    48

    49

    45

    Management and Executive Team

    25

    24

    25

    24

    20

    Board of Directors

    11

    10

    20

    18

    18

    Employee Age Categories

    30 Years and Under

    NPR

    NPR

    114

    84

    63

    30 to 50

    NPR

    NPR

    339

    283

    321

    50 Plus

    NPR

    NPR

    107

    97

    87

    Voluntary Turnover (%)

    4.7

    3.8

    2.8

    1.2

    2.4

    Total Spending on Training ($)

    1,200,000

    1,765,280

    1,653,822

    876,844

    738,125

    Spending per Employee ($)

    2,120

    2,927

    2,953

    1,768

    1,567

  • Economic

    Economic (4)

    2013

    2014

    2015

    2016

    2017

    Value Generated (5)

    1,710

    2,282

    1,563

    1,277

    1,513

    Value Distributed to:

    Suppliers (6)

    1,156

    1,291

    848

    764

    1,148

    Providers of Capital (7)

    416

    426

    460

    296

    259

    Governments (8)

    260

    337

    167

    129

    152

    Employees (9)

    146

    134

    107

    127

    101

    Landowners (10)

    60

    51

    29

    22

    15

    Communities (11)

    2.3

    2.1

    1.6

    1.5

    1.5

    Value Retained (12)

    (330.9)

    40.7

    (49.4)

    (62.8)

    (162.3)

  • Table Notes

    1. Methodology used to collect activity data and calculate Scope 1 and Scope 2 emissions includes Canadian Association of Petroleum Producers, Calculating Greenhouse Gas Emissions, 2003; American Petroleum Institute Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry, 2009; and Western Climate Initiative - Final Essential Requirements of Mandatory Reporting – 2011 Amendments for Harmonization of Reporting in Canadian Jurisdictions, December 21st, 2011. 

    2. Fresh water withdrawal includes water from (a) surface waters according to regulatory permits, (b) municipal sources and (c) water accessed from third parties. 

     3. Non-fresh water use includes produced water, water reused and flowback recycled. Definitions and calculations for non-fresh water have been revised and all numbers have been restated since the publication of our 2016 sustainability report. 

     4. The presentation of ARC’s economic data in prior years has been restated to better align with the GRI Standards. 

     5. Economic value generated comprises sales of crude oil, natural gas, condensate, natural gas liquids and other income, before the reduction of any royalty obligations, gains and losses on risk management contracts and gains and losses on asset dispositions and business combinations. All figures are presented on an accrual basis. 

    6. Economic value distributed to suppliers comprises all operating, transportation and general and administrative expenses as well as capital expenditures that are paid to suppliers other than employees, landowners, governments and for purposes of charitable donations. All figures are presented on an accrual basis. 

     7. Economic value distributed to providers of capital includes interest expense paid in cash, cash dividends paid and common shares distributed through ARC’s Dividend Reinvestment Plan (“DRIP”) and Stock Dividend Program (“SDP”). 

     8. Economic value distributed to governments includes Crown royalty obligations, corporate income taxes, property and business taxes, carbon taxes, provincial sales taxes as well as consideration paid to governments for surface rights of Crown-owned land and government licenses, fees and permits. Excludes contributions to government pension plans and government employment insurance premiums made on behalf of employees. All figures are presented on an accrual basis. Due to the use of different reporting frameworks, figures presented will not necessarily conform to those presented in ARC’s annual reporting under the Extractive Sector Transparency Measures Act (“ESTMA”). For more information or to view ARC’s annual ESTMA report, please refer to ARC’s website at www.arcresources.com. 

    9. Economic value distributed to employees comprises salaries, employee benefits and compensation associated with ARC’s share-based compensation plans. All figures are presented on an accrual basis. 

    10. Economic value distributed to landowners comprises land access payments and royalty obligations to individuals and corporations associated with non-Crown owned lands. Reduction in value distributed to landowners over a five-year time span attributed to reduction in total well count. 

    11. Economic value distributed to communities comprises contributions to charitable and not-for-profit organizations. 

    12. Economic value retained represents Economic value generated minus total Economic value distributed as presented herein. Economic value retained does not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and should not be confused with retained earnings, net income, comprehensive income or any other measure prescribed by IFRS. May not be comparable to similar measures presented by other entities.