ARC Resources Ltd. (ARX), the third-largest oil and natural gas operator in Canada’s Montney formation, said president and chief operating officer Myron Stadnyk will succeed John Dielwart as chief executive officer on Jan. 1.
Dielwart, 59, a founder of ARC, will stay on as an adviser until May and remain as a director, according to a statement from the Calgary-based company released on Canada Newswire after the markets closed today. He told the board two years ago that he intended to retire early next year, the company said.
“Myron may want to put his own stamp on the company but I wouldn’t expect any radical change of direction,” Gordon Currie, an analyst at Salman Partners Inc. in Calgary who rates ARC a hold, said in a phone interview. The management change, which came as a surprise, probably doesn’t alter ARC’s course “in the short term,” he said.
Stadnyk, 50, who joined the company in 1997 from Royal Dutch Shell Plc (RDSA), takes over as ARC plans to spend C$830 million ($833 million) next year, the largest capital spending budget in its history, to boost overall output 3 percent. The company today reported a swing to a third-quarter loss of C$24.3 million.
ARC, which gets 67 percent of its production from gas, is down 5.5 percent this year, compared with a 4.3 percent decline of the S&P/TSX Energy Index. It dropped 0.5 percent to close today at C$23.71 in Toronto trading.
ARC is the third-largest operator in Western Canada’s Montney formation, where companies extract gas and petroleum liquids, according to its website. Shell and Murphy Oil Corp. (MUR) drilled the most wells last year on the British Columbia side of the Montney, which stretches into Alberta, according to the British Columbia government.
Companies including Shell and Apache Corp. (APA) are proposing to liquefy gas from the Montney for export from Canada’s Pacific Coast. Exxon Mobil Corp., also considering a coastal liquefied natural gas terminal, agreed to spend $2.86 billion acquiring Montney operator Celtic Exploration Ltd., spurring analyst speculation companies with assets nearby will become targets.
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