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    Canada’s ARC Resources sees record production in Q4


But net income fell on weaker realised commodity prices.

by: Dale Lunan

Posted in:

Natural Gas & LNG News, Americas, Corporate, Financials, News By Country, Canada

Canada’s ARC Resources sees record production in Q4

Canadian Montney producer ARC Resources said February 8 it had record production in Q4 2023 and for all of 2024, even as net income fell for both periods on weaker prices.

Total production in the fourth quarter averaged 365,248 barrels of oil equivalent (boe)/day, up from 359,730 boe/day in Q4 2022, while full year production increased to 351,954 boe/day from 345,613 boe/day.

Fourth quarter natural gas production averaged 1.38bn ft3/day, an increase from 1.31bn ft3/day a year earlier, while 2023 gas production rose to 1.32bn ft3/day from 1.26bn ft3/day in 2022.

ARC’s average realised gas price in 2023 fell to C$3.77/’000 ft3 from C$8.15/’000 ft3 in 2022 and to C$3.33/’000 ft3 from C$8.31/’000 ft3 in the fourth quarter.

With weaker prices, net income in Q4 fell to C$506.3mn (US$376.8mn) from C$741mn a year earlier, while 2023 income slipped to C$1.6bn from C$2.3bn in 2022.

Funds from operations in Q4 fell to C$699.2mn from C$986.2mn, while free funds flow was C$154.7mn, down from C$602.9mn in Q4 2023 as capital expenditures increased to C$544.5mn from C$383.3mn and dividends rose to C$101.7mn from C$93.4mn. For all of 2023, dividends were C$400.3mn, up from C$318.2mn in 2022.