ARC Resources Ltd. Plans to Spend Approximately $150 Million at Sunrise for Development Drilling and Infrastructure to Complete and Commission the New 60 MMCF Per Day Sunrise Gas Processing Facility
Feb 12 15
ARC Resources Ltd. announced that in 2015, the company plans to spend approximately $150 million at Sunrise for development drilling and infrastructure to complete and commission the new 60 mmcf per day Sunrise gas processing facility. ARC plans to drill nine gross operated natural gas wells at Sunrise in 2015 leading up to the on-stream date of the new facility. ARC expects 2015 Sunrise production to average 75 mmcf per day in 2015; a greater than 100% year-over-year increase in production relative to 2014. Sunrise production will increase to 120 mmcf per day once the new, ARC operated facility is complete and full. ARC expects a substantial portion of the new facility capacity to be filled shortly within the on-stream date, with the remaining capacity to be filled by early 2016.
ARC Resources Ltd. Reports Unaudited Consolidated Earnings and Production Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Production Guidance for the First Quarter of 2015 and Production and Capital Expenditure Guidance for the Year 2015
Feb 11 15
ARC Resources Ltd. reported unaudited consolidated earnings and production results for the fourth quarter and full year ended December 31, 2014. For the quarter, funds from operations were CAD 251.7 million or CAD 0.79 per share against CAD 237.8 million or CAD 0.76 per share year ago. Net income was CAD 113.7 million or CAD 0.36 per basic and diluted share against CAD 13.6 million or CAD 0.04 per basic and diluted share year ago. Operating income was CAD 64.5 million or CAD 0.20 per share against CAD 50 million or CAD 0.16 per share year ago. Capital expenditures, before land and net property acquisitions were CAD 249.3 million against CAD 207.7 million year ago. Total capital expenditures, including land and net property acquistions were CAD 264.9 million against CAD 224.1 million a year ago. Net debt outstanding was CAD 1,255.9 million against CAD 1,011.5 million a year ago. Cash flow from operating activities was CAD 291.2 million compared to CAD 220.9 million a year ago. Property, plant and equipment development expenditures were CAD 263 million compared to CAD 200.6 million a year ago. Intangible exploration and evaluation asset expenditures were CAD 4.3 million compared to CAD 10.6 million a year ago.
For the year, funds from operations were CAD 1,124 million or CAD 3.54 per share against CAD 861.8 million or CAD 2.76 per share year ago. Net income was CAD 380.8 million or CAD 1.20 per basic and diluted share against CAD 240.7 million or CAD 0.77 per basic and diluted share year ago. Operating income was CAD 390.3 million or CAD 1.23 per share against CAD 224.9 million or CAD 0.72 per share year ago. Capital expenditures, before land and net property acquisitions were CAD 945.5 million against CAD 859.9 million year ago. Total capital expenditures, including land and net property acquistions were CAD 1,042 million against CAD 820.8 million a year ago. Cash flow from operating activities was CAD 1,153 million compared to CAD 801.7 million a year ago. Property, plant and equipment development expenditures were CAD 958.2 million compared to CAD 859.2 million a year ago. Intangible exploration and evaluation asset expenditures were CAD 49.4 million compared to CAD 15 million a year ago.
For the quarter, total production was 117,986 boe per day against 100,883 boe per day year ago. ARC's fourth quarter 2014 daily production per thousand shares increased 16% to 0.37 boe per day relative to the fourth quarter of 2013. ARC's fourth quarter oil and liquids production of 45,965 barrels per day was 12% higher than the fourth quarter of 2013. ARC achieved record fourth quarter production of 117,986 boe per day, 17% higher than the fourth quarter of 2013 and 2% higher than the third quarter of 2014. Lower fourth quarter crude oil prices resulted in lower fourth quarter oil sales revenue. ARC's fourth quarter operating netbacks of CAD 25.00 per boe before hedging and CAD 27.29 per boe after hedging were 12% and 5% lower than the fourth quarter of 2013, respectively, due to lower crude oil prices.
For the year, total production was 112,387 boe per day against 96,087 boe per day year ago. ARC's full year liquids production was a record 44,710 barrels per day, 18% higher than 2013. Higher liquids production was attributed to new wells coming on-stream including oil wells at Tower, liquids-rich gas wells at Parkland, and continued strong production at Ante Creek. Full year production of 112,387 boe per day was 17% higher than 2013. New wells at Parkland/Tower and Sunrise, as well as continued strong production at Ante Creek were the primary drivers of higher fourth quarter and full year 2014 production growth. ARC's 2014 annual average production is within the original guidance range of 110,000 to 114,000 boe per day, a significant achievement given the divestment of 2,400 boe per day of production in the second quarter of 2014. Increased production and higher natural gas prices in the fourth quarter and full year 2014 were the key drivers of higher revenue. Full year 2014 operating netbacks of CAD 33.01 per boe before hedging and CAD 32.36 per boe after hedging were 16% and 12% higher than 2013, respectively, due to higher average crude oil and natural gas prices in 2014.
For the year 2015, the company announced a reduction to its 2015 capital program from CAD 875 million to CAD 750 million. The company will only execute capital projects that meet appropriate hurdle rates of return and as such, the company expects 2015 capital program to be less than the CAD 750 million currently approved, which will have a modest impact on full year 2015 production volumes, particularly on the oil side. The 2015 capital budget includes spending on strategic long-term development and infrastructure projects which will set the stage for growth in 2015 and beyond. The company’s 2015 capital program is dynamic and capital will be allocated to the high rate-of-return projects in response to market conditions during 2015. Capital expenditures were reduced from CAD 875 million to CAD 750 million and current income taxes were revised to a range of 0 to 8% of funds from operations from 3% to 8% of funds from operations due to lower expected commodity prices in 2015. The 2015 guidance outlined below is under review and will be updated with first quarter 2015 results to incorporate reduced capital spending attributed to expected cost savings from the service sector, in response to reduced activity levels, and to reflect spending on only those projects that are profitable under current market conditions. Capital expenditures were reduced from CAD 875 million to CAD 750 million and current income taxes were revised to a range of 0 to 8% of funds from operations from 3% to 8% of funds from operations due to lower expected commodity prices in 2015.
For the first quarter of 2015, the company expects to spend approximately CAD 150 million in the first quarter of 2015 and has a great deal of flexibility to adjust its capital budget as required.
For the full year of 2015, the company expects total production to be in the range of 120,000 to 125,000 boe per day, representing approximately 10% year-over-year production growth relative to estimated 2014 levels.
ARC Resources Ltd. Announces Dividend, Payable on May 15, 2015
Feb 11 15
ARC Resources Ltd. announced that a dividend of $0.10 per share, payable on May 15, 2015 to shareholders of record on April 30, 2015. The ex-dividend date is April 28, 2015.