Canada’s ARC Resources Posts Q4 Profit
Canada’s ARC Resources, which will merge with Seven Generations Energy to create the largest player in the prolific Montney play, reported a C$120 (US$94.5)mn profit in Q4 2019, reversing its Q3 2019 loss of C$66.1mn and its C$10.2mn loss in the comparable 2018 period.
The Q4 improvement, ARC said, was due primarily to an increased gain on risk management contracts and increased commodity sales from production, partially offset by increased income tax expense.
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Despite the strong quarter-on-quarter improvement, ARC suffered a C$547.2mn net loss on the year, largely the result of a Q1 2020 impairment charge reflecting lower commodity price forecasts.
ARC’s production averaged 169,468 barrels of oil equivalent (boe)/day in Q4 and was comprised of 783mn ft3/day of natural gas, 15,554 b/d of crude oil, 14,715 b/d of condensate and 8,678 b/d of natural gas liquids. For the year, production averaged a record 161,564 boe/day, including 739mn ft3/day of natural gas.