Canada’s ARC Resources posts Q1 loss
Canadian Montney producer ARC Resources said May 5 it had a net loss of C$69.4mn (US$54mn) in Q1 2022 against year-earlier net income of C$178mn, attributing the reversal to losses on its risk management contracts, higher royalties and higher current income taxes.
Other metrics, however, improved sharply: cash flow from operating activities increased to C$758.8mn from C$266.8mn, while free funds flow rose to C$410.3mn from $148.2mn. ARC distributed 64% of the free funds flow – C$265mn – to shareholders, while the rest was allocated to debt reduction.
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Last month, ARC boosted its portfolio of certified natural gas production, with EO100™ certification of its northeast BC assets, including Greater Dawson and Sunrise. Combined with its previously-certified assets at Kakwa (acquired with Seven Generations Energy in 2021), ARC now holds the largest certified production base of any Canadian producer, with about 95% of its total production covered by EO100™.
Natural gas production averaged 1.28bn ft3/day in Q1 2022, up from 794mn ft3/day a year earlier (prior to the Seven Generations acquisition). Crude oil and condensate production averaged 80,848 barrels/day, up from 27,459 b/d, while natural gas liquids production increased to 50,297 b/d from 10,620 b/d.
During the quarter, it realised an average natural gas sales price of C$5.98/’000 ft3, up from C$4.60/’000 ft3 in Q1 2021.