ARC RESOURCES LTD. REPORTS YEAR-END 2025 RESULTS AND RESERVES

ourth Quarter Results

• Fourth quarter production averaged a record 408,382 boe ⁽¹⁾ per day (58 per cent natural gas and 42 per cent crude oil and liquids ⁽²⁾ ), which included 118,898 barrels per day of crude oil and condensate production, the highest in ARC’s 30-year history. Production per share ⁽³⁾ increased 10 per cent compared to the fourth quarter of 2024.
• ARC generated funds from operations of $874 million ⁽⁴⁾ ($1.52 per share ⁽⁴⁾ ) and cash flow from operating activities of $668 million ($1.16 per share ⁽⁴⁾ ).
  • ARC realized an average natural gas price of $3.77 per Mcf ⁽⁴⁾ , which is $1.43 greater than the average AECO 7A Monthly Index price.
• Free funds flow was $415 million ⁽⁴⁾ ($0.72 per share ⁽⁴⁾ ), and net income was $260 million or $0.45 per share. ARC distributed $257 million ($0.45 per share) to shareholders through the base dividend and share repurchases, and allocated the remainder to debt reduction.
  • ARC declared dividends of $120 million ($0.21 per share ⁽⁴⁾ ) and repurchased 5.1 million common shares for $137 million under its normal course issuer bid (“NCIB”).
• ARC invested $459 million in capital expenditures ⁽⁴⁾ during the fourth quarter, which contributed to total capital expenditures of $1.9 billion in 2025, which was within Company guidance.
• Subsequent to December 31, 2025, ARC executed an agreement to purchase assets in the Kakwa area of Alberta for approximately $160 million. The transaction is expected to close in February 2026.
• Net debt ⁽⁴⁾ decreased by $191 million compared to the third quarter of 2025. As at December 31, 2025, net debt was $2.9 billion or 0.9 times funds from operations ⁽⁴⁾ .

https://www.barchart.com/story/news/58667/arc-resources-ltd-reports-year-end-2025-results-and-reserves