ARC Resources Is Increasing Production At Rock Bottom Natural Gas Pricing

Core Viewpoint - ARC Resources Ltd. is strategically advancing its Attachie project during a period of low natural gas prices, positioning itself to benefit from future price recoveries while currently generating profits [2][6][11] Production Strategy - The company is curtailing approximately 250 MMCF per day of natural gas production at its Sunrise asset due to record low prices, with plans to resume full production when prices recover [4] - A well design change in the Upper Montney is expected to yield a 40% increase in natural gas production over the first twelve months, with only a 25% increase in well costs [4] Financial Performance - ARC Resources is maintaining profitability through its condensate production, even at the market bottom for natural gas prices, allowing it to invest in growth projects and pay dividends [6][11] - The company has a low reinvestment rate, enabling it to pay a dividend of C$0.17 per share while also repurchasing shares and investing in growth [7] Shareholder Returns - The management's strategy includes a share repurchase program aimed at reducing the number of shares outstanding to pre-merger levels, while benefiting from the additional production from the Seven Generations acquisition [8][9] - The company is positioned to grow production by approximately 10% with the Attachie project, which is nearing completion [7] Pricing and Market Position - The strong prices for condensate and oil have mitigated the impact of lower natural gas prices, allowing the company to maintain normal operational levels despite production being at the lower end of guidance [10] - The diversification from the Seven Generations acquisition has positively impacted the company's performance, making it resilient during periods of low natural gas prices [11]