CALGARY, AB, Feb. 6, 2025 /CNW/ - (TSX: ARX) ARC Resources Ltd. ("ARC" or the "Company") today reported its fourth quarter and year-end 2024 financial and operational results as well as its year-end 2024 reserves.

HIGHLIGHTS

Fourth Quarter 2024 Results

ARC delivered record quarterly production of 382,341 boe(1) per day (62 per cent natural gas and 38 per cent crude oil and liquids(2)), in line with fourth quarter guidance of between 380,000 and 385,000 boe per day. Production increased five per cent compared to the fourth quarter of 2023, and seven per cent on a per share basis(3).Condensate and light oil production during the fourth quarter averaged approximately 103,000 barrels per day, the highest in ARC's 29-year history, and a 20 per cent increase year-over-year. This growth was driven primarily by initial production from Attachie Phase I and strong well productivity at Kakwa.Attachie production continued to increase in December, averaging approximately 29,000 boe per day, and included approximately 18,000 barrels per day of condensate and natural gas liquids.Kakwa production during the fourth quarter averaged approximately 195,000 boe per day, including approximately 105,000 barrels per day of condensate and natural gas liquids.The deliberate natural gas production curtailments at Sunrise during the third and fourth quarters of 2024 reduced full-year average production by approximately 10,500 boe per day. In alignment with ARC's commitment to long-term profitability, Sunrise production was restored in the fourth quarter as natural gas prices recovered. This curtailment preserved resource for periods when prices are higher and allowed ARC to defer a portion of the capital originally planned for 2025.ARC realized funds from operations of $770 million(4) ($1.30 per share)(5) and cash flow from operating activities of $651 million ($1.10 per share) during the fourth quarter. ARC generated free funds flow of $420 million(6) ($0.71 per share(7)) and recognized net income of $370 million ($0.63 per share).ARC realized a natural gas price of $2.58 per Mcf(5), 77 per cent greater than the average AECO 7A Monthly Index price of $1.46 per Mcf.ARC reported capital expenditures of $350 million(6) in the fourth quarter, which contributed to total capital expenditures of $1.85 billion in 2024, within Company guidance.During the quarter, ARC declared dividends of $112 million or $0.19 per share, and repurchased 2.2 million common shares for $52 million under its normal course issuer bid ("NCIB"). Net debt decreased by $225 million compared to the third quarter of 2024. As of December 31, 2024, net debt was 1.3 billion(4) or 0.5 times funds from operations(4).