ARC was founded in 1996 with the vision of being a premier conventional oil and gas company. Our exciting growth story has been driven by the invaluable contributions of our people, principled business strategy and high-performance culture.
Today, we are one of Canada’s largest energy companies with industry-leading environmental, social and governance performance and tremendous opportunity on the horizon. Learn about our history and the key milestones and people that made us what we are today.
Here are some of the key events that defined our history.
ARC Energy Trust is formed with the acquisition of 21 properties from Mobil Oil Canada. An initial IPO of 18 million units priced at $10 per share raises $180 million. ARC begins trading on the TSX July 11, 1996, under the symbol AET.UN.
ARC completes its first full year as a trust and closes seven transactions totaling $94 million of net acquisitions. Year-end reserves and total production increase by 40 per cent.
With oil prices averaging just $14.40 U.S per barrel, ARC weathers the storm and maintains distributions at $0.10 per unit per month.
ARC has a year of growth and success. ARC acquires Starcor Energy Royalty Fund and Orion Energy Trust in March, resulting in increased production. Market capitalization increases 200 per cent. Units outstanding rise 109 per cent. All of the growth coupled with rising oil prices resulted in a 42 per cent increase in the unit price.
ARC’s consistent growth and outstanding results place it as one of Canada’s largest oil and gas royalty trusts. In addition, ARC acquires strategic producing assets in Ante Creek.
ARC reaches the $1 billion market capitalization milestone – becoming just the third trust in the energy sector to do so. ARC completes the acquisition of Startech Energy Inc., boosting production by approximately 16,000 boe/day and adding 30 new employees.
ARC becomes the first conventional oil and gas trust to eliminate an external management contract and all related future fees. John Dielwart becomes the first executive of a trust to be appointed to the role of Chairman of the Canadian Association of Petroleum Producers (CAPP).
ARC completes the largest acquisition in its history, acquiring Star Oil and Gas Ltd., including the key asset, the Dawson gas field. Production increases 16,000 boe/day.
ARC focuses on the development of its asset base with a then-record capital expenditure of $194 million, and maintains production at approximately 57,000 boe/day.
ARC announces a $462 million strategic acquisition of properties in the Pembina and Redwater fields. ARC pioneers the use of an innovative completion technology for horizontal wells that proves to be a key technology for unlocking value from tight gas reservoirs.
ARC celebrates its 10-year anniversary in a year that saw record highs in production, cash flow and record total earnings. Cumulative distributions increase to over $2 billion.
ARC significantly expands its land holdings in the greater Dawson area to approximately 90,000 net acres and drills the Sunrise discovery well, setting the stage for future growth in the area.
Total Cumulative distributions paid to investors surpass $3 billion. ARC completes the CO2-enhanced oil recovery pilot facilities at Redwater and successful injection begins. An independent evaluation of the lands in the greater Dawson area identifies over 8 Tcf of original gas in place. Plans are announced to more than triple production at the Dawson gas field with the construction of two 60 mmcf/day gas plants.
ARC successfully applies horizontal completion techniques, already in use at Dawson, to the Ante Creek Montney field in northern Alberta, and completes a $180 million property acquisition to expand its holdings in the area by 70 per cent.
ARC achieves a 16 per cent year-over-year growth in production, accompanied by an increase in revenues, cash flow and net income. The first phase of the Dawson gas plant comes on-stream in May. ARC completes the acquisition of Storm Exploration Inc., adding the Parkland Montney field.
ARC completes its conversion from a royalty trust to a corporation, while maintaining its proven strategy. In July, ARC celebrates its 15-year anniversary. Operational successes include the completion of the second phase of the Dawson gas plant.
Founder and long-time Chief Executive Officer, John Dielwart, announces his retirement from ARC with Myron Stadnyk appointed as President and Chief Executive Officer effective January 1, 2013. ARC achieved record production levels in 2012, with crude oil and liquids up 15 per cent relative to 2011.
ARC executes a record capital program of $860 million, setting the stage for a significant increase in production in 2014. The development of ARC’s Montney assets continue with the construction and commissioning of the Parkland Gas Plant. ARC reaches the milestone of 100,000 boe/day in the fourth quarter of 2013.
ARC achieves record production exceeding 110,000 boe/day. Investment in strategic infrastructure remains a core part of ARC’s business strategy as construction begins on a new 60 mmcf/day gas plant in Sunrise. ARC surpasses the $5 billion mark of dividends paid to shareholders.
ARC successfully completes construction of the Sunrise gas plant ahead of schedule and under budget. Despite a challenging year for the industry, ARC continues to manage the business for the long term. Hal Kvisle announced as new Board Chair following Mac Van Wielingen’s retirement.
ARC safely operates its 2016 capital program with no lost-time incidents for employees and contractors. The sale of Saskatchewan assets continues ARC’s transformation towards a more focused asset base. ARC exited the year with a strong balance sheet poised for success despite challenging industry conditions.
ARC delivered record production of over 120,000 boe per day, achieved our largest development reserves additions in corporate history, and grew cash flow per share by 15 per cent relative to 2016. We safely completed the construction of a gas processing and liquids-handling facility at Dawson and advanced our understanding of the liquids-rich lower Montney.
ARC completed the Sunrise Phase II gas processing facility expansion project, pipeline-connected our Parkland and Dawson assets to advance our lower Montney development, and invested in strategic water infrastructure to reduce ARC’s freshwater dependency. With increased confidence at Attachie West, ARC sanctioned the first major phase of development in the area. In 2018, ARC published its sixth biennial Corporate Social Responsibility report, and delivered cash flow per share growth of 12 per cent.
Capital expenditure plans and base operations were carried out safely and efficiently. ARC demonstrated excellent capital execution by bringing the Sunrise Phase II gas processing facility to full capacity and advanced strategic infrastructure projects at Dawson and Ante Creek. Average daily production was a record 139,126 boe per day, and ARC replaced 164 per cent of 2019 production through development activities. ARC continued to advance its strong ESG performance by reducing its GHG emissions intensity by 47 per cent relative to its 2017 baseline.
Following the retirement of Myron Stadnyk in 2020, Terry Anderson is appointed President and Chief Executive Officer. During the year, ARC strengthened its business through prudent capital allocation decisions and excellent operational execution, despite volatile and uncertain market conditions. ARC delivered record production by bringing the Dawson Phase IV gas processing and liquids-handling facility on-stream, thus expanding ARC’s low-cost Montney business, and bolstered its strong financial position through significant debt reduction. In 2020, ARC replaced over 200 per cent of 2020 production through development activities, prioritized the safety of its employees and contractors, and demonstrated the Company’s ongoing commitment to delivering leading ESG performance and reporting transparency.
On April 6, 2021, ARC closed its strategic combination with Seven Generations Energy Ltd. to become Canada’s premier Montney company. As a result of the combination, ARC is now Canada’s sixth-largest energy company, with a focus on preserving its responsible and disciplined approach to development while creating superior and enduring value for all shareholders.
On July 11, 2021 we celebrated a significant milestone in our history – 25 years of producing Canadian energy. Since our inception in 1996, we have 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.
As we reflect and celebrate the past 25 years, we also look forward to the next 25. Today, ARC is a much bigger, stronger, and relevant energy company, with significant opportunity on the horizon.
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. Hear from some of the people who played a role in our 25-year history.
We are proud to have a long history of giving back to our communities; it’s core to who we are. Since the beginning, we’ve made it a priority to positively contribute to the communities where we live and work. We strive to build strong relationships through long-term partnerships with long-term impact. Hear from some of our longest partners and how we work together to make a positive impact in the community.
Today, ARC is a much bigger, stronger, and relevant energy company, with significant opportunity on the horizon. Moving forward, we will look to the people of ARC, who have played an important role in our achievements to-date, to help write the next chapter in our story. Here’s why we’re excited for the next 25 years.