ARC RESOURCES LTD. REPORTS SECOND QUARTER 2025 RESULTS, PROVIDES 2025 REVISED GUIDANCE, AND ANNOUNCES NEW ATTACHIE LAND ACQUISITION

Executive Summary

• ARC reported Q2 2025 funds from operations of $682 M ($1.17/share) and net income of $396 M ($0.68/share), a 65 % YoY increase driven by higher production and gas prices.
• Completed the $1.6 B cash acquisition of the Kakwa Montney assets on July 2 2025, adding ~35‑40 k boe/d to full‑year production outlook.
• Revised 2025 guidance: capital spend $1.85–$1.95 B, average production 385–395 k boe/d (up from prior), and free funds flow target $1.3–$1.5 B for the year.

Key Details

• Production – Q2 avg 357,228 boe/d (61 % gas, 39 % liquids); Attachie 26,833 boe/d; Kakwa 169,622 boe/d. Full‑year 2025 production now expected 385–395 k boe/d, >410 k boe/d in H2.
• Financials – Funds from operations $682 M; cash flow from ops $699 M; free funds flow $186 M. Capital expenditures $496 M (32 wells drilled, 45 completed). Net debt $1.3 B (0.4× FFO).
• Shareholder Returns – Distributed $188 M (100 % of free cash flow) via dividends ($111 M) and NCIB repurchases (2.9 M shares for $77 M). Intent to return essentially all free funds flow in 2025.
• Acquisition – Kakwa assets purchased from Strathcona for ~$1.6 B cash; integration funded by senior notes ($1.0 B) and a new $500 M term loan. Adds 35‑40 k boe/d production, increases 2025 capex budget by ~$150 M.
• Attachie Development Agreement – Earn‑in of up to 36 contiguous Montney sections with Tsaa Dunne Za Energy (HRFN partner), expanding Attachie footprint >10 % to ~360 sections. $50 M earmarked for Phase II site work in 2025.
• Guidance Adjustments – Capital budget raised to $1.85–$1.95 B (incl. $150 M Kakwa, $50 M Attachie Phase II). Operating expense forecast $5.00‑$5.50/boe (up from prior $4.50‑$4.90).
• Natural Gas Curtailments – Sunrise gas production curtailed 75–200 MMcf/d in Q2; ongoing curtailment ~360 MMcf/d to preserve cash flow amid low Western Canadian prices. Expected restoration when prices recover.
• Conference Call – Management will discuss results on Friday, Aug 1 2025 at 8:00 a.m. MT (dial‑in details provided).

Notable Quotes

(Not included as the release contains no direct CEO/President quotations.)