Canada’s ARC Resources gains in Q2 over Q1
Canadian Montney producer ARC Resources said August 1 its Q2 2024 net income increased to C$239.5mn (US$172.8mn) from C$185.4mn in Q1 2024 but fell from C$278.9mn in the second quarter last year.
Cash flow from operating activities fell to C$543mn from C$550.9mn in Q2 2023 while capital expenditures increased to C$532.3mn from C$416.5mn a year ago.
Total production in Q2 averaged 330,046 barrels of oil equivalent (boe)/day, down from 343,630 boe/day a year ago, with natural gas flat at 1.29bn ft3/day and liquids down sharply to 115,707 barrels/day from 128,742 barrels/day a year ago. Lower liquids production reflected planned turnaround activity at ARC’s Greater Dawson and Kakwa facilities.
Average realised natural gas prices in Q2 fell to C$1.86/’000 ft3 from C$3.19/’000 ft3 in Q1 2024 and C$2.83/’000 ft3 in the second quarter last year.
In response to the natural gas price environment, ARC decided subsequent to the second quarter to curtail about 250mn ft3/day of production at Sunrise, its only dry gas asset, until prices recover to levels that support its return requirements.
The curtailment at Sunrise is expected to reduce Q3 production to the 330,000-335,000 boe/day range, although Q4 production is expected in the 380,000-385,000 boe/day range, reflecting restored volumes at Sunrise, increased condensate-rich production from Greater Dawson and Kakwa relative to the first half and initial contributions from an expansion at the liquids-rich Attachie asset.