CALGARY, AB – ARC Resources Ltd. (ARC) has announced its third-quarter 2019 financial and operational results.
ARC also announced its 2020 capital program of $500 million. ARC plans to invest approximately $150 million in the fourth quarter of 2019 to substantially complete major infrastructure, establishing a new, larger production base of approximately 155,000 to 161,000 (BOE) per day for ARC in 2020.
ARC delivered average daily production of 134,813 barrels of oil equivalent BOE per day in the third quarter of 2019, with a continued focus on the expansion of its high-value liquids production in the Montney.
ARC completed the Dawson Phase I & II liquids-handling upgrade early in the fourth quarter of 2019, and is advancing construction of the Dawson Phase IV gas processing and liquids-handling facility, the Company’s next major development project, which is anticipated to be brought on-stream in the second quarter of 2020.
With final transportation arrangements at Sunrise coming into effect at the beginning of the fourth quarter of 2019, ARC plans to operate the Sunrise Phase II facility at or near its processing capacity of 240 MMcf per day of natural gas for the remainder of 2019 and will capitalize on the recent strengthening of winter natural gas pricing.
ARC generated funds from operations of $145.4 million ($0.41 per share) and $524.6 million ($1.48 per share) for the three and nine months ended September 30, 2019, respectively, and paid $53.1 million ($0.15 per share) and $159.3 million ($0.45 per share) in dividends to shareholders during the same periods.
ARC expects that production will increase through the remainder of the year with final transportation arrangements at Sunrise that came into effect at the beginning of the fourth quarter of 2019 and all major planned turnarounds and associated downtime for the year now completed. Full-year 2019 average daily production is expected to be near the midpoint of the guidance range of 136,000 to 142,000 BOE per day.
To view ARC’s unaudited condensed interim consolidated financial statements and notes and ARC’s Management’s Discussion and Analysis are available on ARC’s website at www.arcresources.com and on SEDAR at www.sedar.com.