Canada’s ARC Resources reports reduced earnings in Q2
Canadian Montney producer ARC Resources said August 2 it had net income in Q2 2023 of C$278.9mn (US$208.8mn), down from C$762.9mn in the comparable 2022 period.
Cash flow from operations was cut in half, to C$550.9mn from C$1.1bn, while free funds flow fell to C$144.3mn from C$677.3mn. Dividends declared rose to C$103.7mn from C$79.9mn, while capital expenditures increased to C$416.5mn from C$352.4mn.
Natural gas production averaged 1.29bn ft3/day, up modestly from 1.22bn ft3/day in Q2 2022, but ARC’s average realised gas price fell significantly, to C$2.83/’000 ft3 from C$9.08/’000 ft3.
ARC said it is evaluating opportunities to supply natural gas to international markets through long-term LNG supply agreements, and in March announced a memorandum of agreement to pursue an agreement to supply the Haisla-led Cedar LNG project with about 200mn ft3/day of natural gas, enough for some 1.5mn tonnes/year of LNG.
ARC has takeaway capacity in place to execute on such agreements, it said, and plans to market about 25% of its future natural gas production to international markets.