ARC Resources Limited (ARX) 2024年年度報告「TSX」.pdf

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1、ANNUAL REPORTProud Producer of Canadian Energy2024 Natural Gas 1.3 Bcf/d Condensate 80,000 bbl/d Natural Gas Liquids(NGLs)43,000 bbl/d Crude Oil 7,000 bbl/d 63%23%12%2%350 Mboe/dProductionProfile(1)Proud Producer of Canadian Energy Reliable energy for the worldARC Resources Ltd.is a Canadian energy

2、company with a strong track record of operational and financial performance.Today,we are the largest pure-play Montney producer,Canadas largest condensate producer and the countrys third-largest natural gas producer.Our strategy is to be the best-in-class responsible energy producer.Our approach cen

3、ters on producing low-cost energy safely and efficiently.Backed by our investment-grade credit rating,we have established a strong and resilient energy company thats well-positioned to meet the worlds energy needs today and into the future.(1)Average annual daily production as of the year ended Dece

4、mber 31,2024.ON THE COVER AND RIGHT:ARCs Attachie Phase I project located in northeast British Columbia was commissioned in October 2024.LEARN MORE:02 About ARC04 Message to Shareholders06 2024 Operational and Financial Highlights07 Managements Discussion and Analysis69 2024 Consolidated Financial S

5、tatements81 Notes to Consolidated Financial Statements115 Shareholder InformationMessage to Shareholders2024 was a milestone year defined by operational excellence,capital discipline,and a focus on long-term profitability.Terry AndersonPresident and Chief Executive OfficerOver the course of the year

6、,we executed one of the largest capital programs in ARCs history,completed a major growth project with Attachie Phase I,and distributed$627 million to our shareholders.It was an exceptional year that was marked by strong operational and financial performance.During the execution of our$1.85 billion

7、capital program,our focus on safe and efficient development continued.I am tremendously proud of the efforts of our people in delivering these outstanding results.We close 2024 with great momentum,well-positioned to deliver an exciting 2025.Operational ExcellenceIn 2024,we achieved fourth quarter pr

8、oduction of 382,341 boe/d,the highest in our 29-year history.This included record condensate and light oil volumes of approximately 103,000 bbl/d,20 per cent higher than the same period last year.This increase was driven by new production from Attachie and strong well productivity at Kakwa.In a peri

9、od of weak natural gas prices,our condensate production helped mitigate any impact to our bottom-line.Last year,as low natural gas prices persisted in the third and fourth quarters,we elected to curtail volumes at Sunrise at times,and preserve the value of this resource until pricing improved.This i

10、s consistent with ARCs disciplined approach we will always prioritize profitability over a topline production number.ARC is Canadas largest condensate producer a valuable commodity that balances our production profile and drove 62 per cent of our revenue in 2024.During the year,Kakwas industry-leadi

11、ng performance was achieved by focusing our development in areas with higher condensate-to-gas ratios which we plan to continue in 2025.In addition,we implemented changes in our completions design which resulted in more effective frac placement,and ultimately,improved capital efficiencies.The commis

12、sioning of Attachie Phase I in October 2024 was the first milestone in delivering on our long-term plan and it supports a meaningful step change in our growth and profitability.Phase I is progressing as planned,with production expected to average approximately 37,500 boe/d in 2025.We are proud of ou

13、r team and partners for their dedication to safety and work on this project.Attachie has highlighted our strengths in project execution and our approach to community and Indigenous engagement.Our strong relationship with Halfway River First Nation enabled ARC to be selected in the Government of Brit

14、ish Columbias Landscape Planning Pilot as the sole oil and gas producer to be exempt from the disturbance caps in the area,bringing long-term confidence to our future development of Attachie.Top-Tier InventoryWe delivered another year of consistent reserve growth,positive technical revisions,and low

15、 finding and development costs.This is a track record we have established over the years,and it reflects what you can continue to expect from ARC in the future.Record reserves were achieved across all categories including five per cent growth on both proved producing(“PDP”)and proved plus probable(“

16、2P”)reserves.At Attachie,we booked an additional 50 million boe of 2P reserves,which represents just nine per cent of ARCs internal inventory estimate at Attachie and provides a runway for long-term reserve growth.Growth was also driven by positive technical revisions on all products in all categori

17、es.Notably,changes in our completions design at Kakwa have resulted in a moderate 4|2024 ANNUAL REPORT|ARC RESOURCES LTD.increase in reserves per undeveloped location,and positive technical revisions have contributed to 41 million barrels of oil equivalent on a total proved basis.These record reserv

18、es validate the depth of our inventory and reaffirm the long-term profitability of our Montney assets.Maximizing Profitability Looking back on the year,our low-cost structure and market diversification once again provided a material competitive advantage in achieving high margins through pricing cyc

19、les.Despite the weak natural gas prices in the back half of the year,by leveraging our transportation agreements to reach markets in the United States,ARC realized an annual average natural gas price that was 65 per cent above the average AECO 7A Monthly Index Price.This marks the 12th straight year

20、 that our market diversification strategy resulted in a realized natural gas price that exceeded AECO by 20 per cent or greater.When backstopped with the benefits of owning and operating our infrastructure,we delivered a combined transportation and operating expense of$9.98 per boe,which was below o

21、ur guidance range.In 2024,we also progressed our strategy to further diversify and expand margins through participation in the global LNG market.In April,we entered into an agreement with Cedar LNG to supply and liquefy 200 MMcf/d of natural gas.This is our third long-term LNG agreement which sees u

22、s achieve our target of linking approximately 25 per cent of our future natural gas production to international pricing.Shareholder ReturnsWe are focused on continuing to deliver competitive and sustainable returns.Free funds flow for the year totalled$627 million,and for the second consecutive year

23、,essentially all of which was distributed to shareholders through dividends and share buybacks.During the year,we were also pleased to increase our quarterly dividend by 12 per cent to$0.19 per share.For the third consecutive year,our strong share performance landed ARC on the TSX30,which recognizes

24、 the 30 top-performing companies on the TSX.Looking ahead to 2025,we anticipate reduced capital expenditures and increased production,which is expected to drive free funds flow of approximately$1.8 billion1 based on the forward curve,all of which we intend to return to shareholders once again.Lookin

25、g Forward2024 was a pivotal year in demonstrating our ability to execute,and instilling confidence in achieving the goals of our long-term plan.This foundation has set us up well for 2025,where we will demonstrate ARCs profitability with a full year of Attachie.In 2025,we plan to continue investing

26、in this new development area,and we have already shifted our focus to Phase II,the next major milestone in our long-term plan.Thank you to our people for their continued commitment and contributions to ARCs strong performance,along with our shareholders,partners,service providers,Indigenous communit

27、ies,governments and investors for your ongoing support.This is an exciting time for ARC our commitment to operational excellence,continued capital discipline,and uncompromising focus on safety positions us well for continued success.Thank you,Terry AndersonPresident and Chief Executive OfficerARCs m

28、ajor growth project,Attachie Phase I was commissioned in October 2024 with production expected to average approximately 37,500 boe/d in 2025.1 Based on the forward curve at January 24,2025(WTI US$71.70 per barrel;US$3.88/MMBtu NYMEX;C$2.03/Mcf AECO).ARC RESOURCES LTD.|2024 ANNUAL REPORT|52024 Operat

29、ional and Financial Highlights(1)ARC delivered strong operational and financial results in 2024.These results were achieved while upholding our longstanding principles of safety,capital discipline,and financial strength.(1)Throughout this report,ARC adheres to Canadian generally accepted accounting

30、principles(“GAAP”).In some instances,ARC employs certain measures to analyze its financial performance,financial position,and cash flows including,“capital expenditures”,“free funds flow”and“free funds flow per share”,that do not have any standardized meaning under International Financial Reporting

31、Standards as issued by the International Accounting Standards Board(“IFRS Accounting Standards”)and may not be comparable to similar measures presented by other entities.The most directly comparable GAAP measure for capital expenditures is cash flow used in investing activities,and the most directly

32、 comparable GAAP measure for free funds flow is cash flow from operating activities.Free funds flow per share includes a non-GAAP financial measure component of free funds flow.The non-GAAP and other financial measures should not be considered to be more meaningful than measures determined in accord

33、ance with IFRS Accounting Standards as indicators of ARCs financial performance,financial position,or cash flows.Certain additional disclosures for these non-GAAP and other financial measures have been incorporated by reference and can be found in the section entitled“Non-GAAP and Other Financial Me

34、asures”in ARCs Managements Discussion and Analysis(“MD&A”)as at and for the three months and year ended December 31,2024,available here and under ARCs SEDAR+profile at www.sedarplus.ca.2023Capital Expenditures($millions)2024$1,846$1,850Net Debt to Funds From Operations(ratio)202320240.5x0.5xOperatin

35、g Expense($/boe)20232024$4.68$4.59Free Funds Flow($millions)20232024$790$1.05$1.29per share$627Funds From Operations($millions)20232024$4.15$4.32per share$2,473$2,640Net Income($millions)per share2024$1,124$1.882023$2.61$1,597Annual Average Daily Production(boe/d)2024347,9082023351,9546|2024 ANNUAL

36、REPORT|ARC RESOURCES LTD.Managements Discussion and AnalysisFor the Three Months and Year Ended December 31,202408 About ARC Resources Ltd.10 Quarterly Results 11 Annual Guidance13 2024 Fourth Quarter Financial and Operational Results44 Risk Factors 57 Control Environment58 Financial Reporting Updat

37、e64 Forward-looking Information and Statements66 Glossary 67 Annual Historical Review68 Quarterly Historical ReviewARC RESOURCES LTD.|2024 ANNUAL REPORT|7MANAGEMENTS DISCUSSION AND ANALYSISThis Managements Discussion and Analysis(MD&A)of ARC Resources Ltd.(ARC or the Company)is Managements analysis

38、of the financial performance and significant trends and external factors that may affect future performance.It is dated February 6,2025,and should be read in conjunction with the audited consolidated financial statements(the financial statements)as at and for the year ended December 31,2024,and the

39、MD&A and unaudited condensed interim consolidated financial statements for the periods ended March 31,2024,June 30,2024,and September 30,2024,as well as ARCs 2023 Annual Information Form(AIF),each of which is available on ARCs website at and on SEDAR+at www.sedarplus.ca.All financial information is

40、reported in Canadian dollars and all per share information is based on diluted weighted average common shares,unless otherwise noted.Throughout this MD&A,crude oil(crude oil)refers to light crude oil,medium crude oil,and heavy crude oil as defined by National Instrument 51-101 Standards of Disclosur

41、e for Oil and Gas Activities(NI 51-101).Condensate is a natural gas liquid as defined by NI 51-101.Throughout this MD&A,natural gas liquids(NGLs)comprise all NGLs as defined by NI 51-101 other than condensate,which is disclosed separately.Crude oil and liquids(crude oil and liquids)refers to crude o

42、il,condensate,and NGLs.Throughout this MD&A and in other materials disclosed by the Company,ARC presents financial measures that adhere to Canadian generally accepted accounting principles(GAAP)and International Financial Reporting Standards as issued by the International Accounting Standards Board(

43、IFRS Accounting Standards),however the Company also employs certain non-GAAP financial measures to analyze financial performance,financial position,and cash flow including,netback,capital expenditures,free funds flow,adjusted earnings before interest and taxes(adjusted EBIT),and average capital empl

44、oyed.Additionally,other financial measures are also used to analyze performance including,but not limited to,funds from operations and net debt.These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS Accounting Standards and therefore may not be compara

45、ble to similar measures presented by other entities.The non-GAAP and other financial measures should not be considered to be more meaningful indicators of ARCs performance than GAAP measures which are determined in accordance with IFRS Accounting Standards,such as net income,cash flow from operating

46、 activities,and cash flow used in investing activities.Readers are cautioned that the MD&A should be read in conjunction with the sections entitled Non-GAAP and Other Financial Measures,Forward-looking Information and Statements,and Glossary at the end of this MD&A.ABOUT ARC RESOURCES LTD.ARC is a d

47、ividend-paying,Canadian energy company headquartered in Calgary,Alberta.ARCs activities focus on the exploration,development,and production of unconventional natural gas,condensate,NGLs,and crude oil in western Canada with an emphasis on the development of assets with a large volume of hydrocarbons

48、in-place,commonly referred to as resource plays.The guiding principles upon which ARC conducts its business have created a strong foundation for the Companys performance.ARCs standard of operational excellence,robust risk management program,and strong balance sheet have positioned the Company to eff

49、ectively manage volatile market conditions.The Companys concentrated asset base,located in premier positions within the Montney fairway and network of owned-and-operated infrastructure,allows ARC to deliver strong capital and operating efficiencies.The commodity and geographic optionality within the

50、 asset base allows ARC to manage risk.ARC exercises capital discipline and maintains a deliberate pace of development to manage its corporate decline rate.ARCs business model is focused on a strong balance sheet,with ample liquidity,social and governance leadership,long-term corporate profitability,

51、free funds flow generation,and paying a dividend to shareholders.Together with the Companys premier land position in the Montney,significant resource in-place,large inventory of future drilling locations,and high-performance people and culture,these principles make ARC a differentiated company.8|202

52、4 ANNUAL REPORT|ARC RESOURCES LTD.HighlightsCorporate highlights for the years 2020 through 2024 are shown in Table 1:Table 1($millions,except per share amounts,or unless otherwise noted)20242023202220212020Production(1)Crude oil and condensate(bbl/d)87,266 83,880 86,393 70,393 29,245 Natural gas(MM

53、cf/d)1,307 1,322 1,259 1,149 739 NGLs(bbl/d)42,787 47,760 49,385 40,084 9,112 Total production(boe/d)347,908 351,954 345,613 302,003 161,564 Average daily production per thousand shares(2)0.58 0.58 0.52 0.48 0.46 Net income(loss)1,124.1 1,596.5 2,302.3 786.6 (547.2)Net income(loss)per share 1.88 2.6

54、1 3.47 1.25 (1.55)Cash flow from operating activities 2,348.6 2,394.3 3,833.3 2,006.5 655.7 Cash flow from operating activities per share(3)3.94 3.92 5.78 3.20 1.86 Funds from operations(4)2,472.5 2,639.6 3,712.5 2,415.4 667.6 Funds from operations per share(3)4.15 4.32 5.60 3.85 1.89 Free funds flo

55、w(5)627.0 789.8 2,270.6 1,353.6 324.4 Free funds flow per share(6)1.05 1.29 3.42 2.16 0.92 Cash flow used in investing activities 1,906.2 1,690.7 1,413.2 808.1 364.3 Capital expenditures(7)1,845.5 1,849.8 1,441.9 1,061.8 343.2 Long-term debt(8)1,387.4 1,148.9 990.0 1,705.3 701.9 Net debt(4)1,335.6 1

56、,317.1 1,301.5 1,828.7 693.5 Net debt to funds from operations(ratio)(4)0.5 0.5 0.4 0.8 1.0 Return on average capital employed(ROACE)(%)(9)16 23 35 18 (18)Proved plus probable reserves(MMboe)(10)(11)2,098.2 1,994.3 1,828.6 1,760.6 929.0 Proved plus probable reserves per share(boe)(10)(11)3.5 3.3 2.8

57、 2.8 2.6(1)Reported production amount is based on Companys interest before royalty burdens.(2)Represents average daily production divided by the diluted weighted average common shares outstanding for the respective years ended December 31.(3)Refer to the section entitled Non-GAAP and Other Financial

58、 Measures contained within this MD&A for an explanation of composition.(4)Refer to Note 15 Capital Management in the financial statements and to the section entitled Non-GAAP and Other Financial Measures contained within this MD&A.(5)Non-GAAP financial measure that does not have any standardized mea

59、ning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other entities.The most directly comparable GAAP measure for free funds flow is cash flow from operating activities.Refer to the section entitled Non-GAAP and Other Financial Measures contained

60、within this MD&A.(6)Non-GAAP ratio that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar ratios presented by other entities.Includes a non-GAAP financial measure component of free funds flow.Refer to the section entitled Non-GAAP a

61、nd Other Financial Measures contained within this MD&A for an explanation of composition.(7)Non-GAAP financial measure that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other entities.The most directly com

62、parable GAAP measure for capital expenditures is cash flow used in investing activities.Refer to the section entitled Non-GAAP and Other Financial Measures contained within this MD&A.(8)Refer to Note 12 Long-term Debt in the financial statements.Long-term debt includes current and long-term portions

63、.(9)Non-GAAP ratio that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar ratios presented by other entities.Includes non-GAAP financial measure components of adjusted EBIT and average capital employed.Refer to the section entitled

64、Non-GAAP and Other Financial Measures contained within this MD&A for an explanation of composition.(10)Crude oil,condensate,natural gas,and NGLs reserves(reserves)as determined by ARCs independent qualified reserve evaluator with an effective date of December 31 for the years shown in accordance wit

65、h the Canadian Oil and Gas Evaluation Handbook and NI 51-101.(11)Reserves are the gross interest reserves before deduction of royalties and without including any royalty interests.For more information,see ARCs AIF and the news release entitled ARC Resources Ltd.Reports Year-end 2024 Results and Rese

66、rves dated February 6,2025,available on ARCs website at and on SEDAR+at www.sedarplus.ca.ARC RESOURCES LTD.|2024 ANNUAL REPORT|9QUARTERLY RESULTS(1)Trends in net income,cash flow from operating activities,and funds from operations are primarily associated with fluctuations in commodity sales from pr

67、oduction which reflect changes in production levels and commodity prices.Net income is also impacted by changes in the value of risk management contracts and impairment or reversal of impairment of property,plant and equipment(PP&E).Exhibit 1$millions$per share Net IncomeNet incomePer share,dilutedQ

68、1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 202402505007500.000.400.801.201.60$millions$per shareCash Flow from Operating ActivitiesCash flow from operating activitiesPer share,diluted Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 202402505007500.400.801.201.60$millions$per shareFunds f

69、rom OperationsFunds from operationsPer share,diluted Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 202402004006008000.400.801.201.602.00$millions$per shareFree Funds FlowFree funds flowPer share,dilutedQ1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024-2000200400600-0.300.000.300.600.901

70、.20$millionsLong-term Debt and Net Debt Long-term debtNet debtQ1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 202405001,0001,5002,000boe/d per 1,000 sharesAverage Daily ProductionDaily production(boe/d)Daily production per thousand sharesQ1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 202401

71、00,000200,000300,000400,0000.300.400.500.600.70(1)The details contained in the graphs above are included in the section entitled Quarterly Historical Review contained within this MD&A.10|2024 ANNUAL REPORT|ARC RESOURCES LTD.ANNUAL GUIDANCEARCs 2024 and 2025 annual guidance and a review of 2024 actua

72、l results are outlined below:Table 22024 Guidance 2024 Actual%Variance from2024 Guidance 2025 GuidanceProductionCrude oil and condensate(bbl/d)87,000-91,500 87,266 104,000-110,000Natural gas(MMcf/d)1,325-1,340 1,307 (1)1,400-1,420NGLs(bbl/d)42,000-45,000 42,787 42,000-48,000Total(boe/d)350,000-360,0

73、00 347,908 (1)380,000-395,000Expenses($/boe)(1)(2)Operating4.50-4.90 4.68 4.50-4.90Transportation5.50-6.00 5.21 (5)5.00-5.50General and administrative(G&A)expense before share-based compensation expense1.05-1.25 1.28 2 0.90-1.10G&A-share-based compensation expense0.55-0.65 0.67 3 0.25-0.35Interest a

74、nd financing(3)0.90-1.00 0.94 0.70-0.80Current income tax expense,as a per cent of funds from operations(1)10-15 8 (20)10-15Capital expenditures($billions)(2)(4)1.75-1.85 1.85 1.6-1.7(1)Refer to the section entitled Non-GAAP and Other Financial Measures contained within this MD&A for an explanation

75、of composition.(2)2025 annual guidance excludes potential impact from tariffs.(3)Excludes accretion of ARCs asset retirement obligation(ARO).(4)Refer to the section entitled About ARC Resources Ltd.contained within this MD&A for historical capital expenditures.Variances from 2024 annual guidance are

76、 as follows:Production was below the guidance range due to the deliberate curtailment of production from the Sunrise area in the third and fourth quarters as a response to low western Canadian natural gas prices.Production was restored by the end of the year.Transportation was below the guidance ran

77、ge primarily due to lower fuel gas charges and lower trucking costs.G&A expense before share-based compensation expense was above the guidance range primarily due to increased employee compensation as well as consulting costs associated with an enterprise system implementation project.G&A-share-base

78、d compensation expense was above the guidance range due to the appreciation of ARCs share price as well as an increase in the performance multiplier associated with certain of ARCs share-based compensation plans.Current income tax as a per cent of funds from operations was below the guidance range p

79、rimarily due to lower taxable income as a result of lower average realized commodity prices than planned.ARCs priority is to provide an attractive total shareholder return by balancing profitable reinvestment in the Companys assets with a meaningful return of capital through dividends and share repu

80、rchases.In 2024,ARC invested$1.85 billion in capital expenditures.In 2025,ARC has developed a capital budget of between$1.6 to$1.7 billion.The planned changes from 2024 to 2025 reflect lower capital investment in the Attachie area with the completion of ARCs Attachie Phase I facility in 2024.The 202

81、5 budget is expected to deliver average annual production of between 380,000 and 395,000 boe per day.For more information regarding 2025 guidance,refer to the news releases dated November 6,2024 and February 6,2025,entitled ARC Resources Ltd.Reports Third Quarter 2024 Results and Announces 2025 Budg

82、et,First Production at Attachie,and 12 per cent Dividend Increase and ARC Resources Ltd.Reports Year-end 2024 Results and Reserves,available on ARCs website at and on SEDAR+at www.sedarplus.ca.ARC RESOURCES LTD.|2024 ANNUAL REPORT|11Exhibit 2 2024 Production Guidance 2024 Guidance 2024 Actual340,000

83、345,000350,000355,000360,000365,000Total(boe/d)84,00086,00088,00090,00092,000Crude Oil and Condensate(bbl/d)1,2801,3001,3201,3401,360Natural Gas(MMcf/d)40,00042,00044,00046,00048,000NGLs(bbl/d)12|2024 ANNUAL REPORT|ARC RESOURCES LTD.Exhibit 2a 2024 Expense Guidance 2024 Guidance 2024 Actual4.404.604

84、.805.00Operating($/boe)5.005.205.405.605.806.006.20Transportation($/boe)1.401.601.802.002.20G&A($/boe)(1)0.800.901.001.10Interest and Financing($/boe)(1)Refer to the section entitled Non-GAAP and Other Financial Measures contained within this MD&A for an explanation of composition.2024 FOURTH QUARTE

85、R FINANCIAL AND OPERATIONAL RESULTSFinancial HighlightsTable 3 Three Months EndedYear Ended($millions,except per share and production data)September 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeNet income 328.9 370.3 506.3 (27)1,124.1 1,596.5 (30)Net income pe

86、r share 0.55 0.63 0.84 (25)1.88 2.61 (28)Cash flow from operating activities 518.4 650.9 698.9 (7)2,348.6 2,394.3 (2)Cash flow from operating activities per share 0.87 1.10 1.16 (5)3.94 3.92 1 Funds from operations 592.4 770.4 699.2 10 2,472.5 2,639.6 (6)Funds from operations per share 0.99 1.30 1.1

87、6 12 4.15 4.32 (4)Free funds flow 133.8 420.4 154.7 172 627.0 789.8 (21)Free funds flow per share 0.22 0.71 0.26 173 1.05 1.29 (19)Dividends declared per share(1)0.17 0.19 0.17 12 0.70 0.66 6 Average daily production(boe/d)326,768 382,341 365,248 5 347,908 351,954 (1)(1)Refer to the section entitled

88、 Non-GAAP and Other Financial Measures contained within this MD&A for an explanation of composition.ARC RESOURCES LTD.|2024 ANNUAL REPORT|13Net IncomeIn the fourth quarter of 2024,ARC recognized net income of$370.3 million($0.63 per share),a decrease of$136.0 million from ARCs fourth quarter 2023 ne

89、t income of$506.3 million($0.84 per share).The decrease in net income is primarily attributed to a decreased gain on risk management contracts of$147.8 million and a lower gain on disposal of$58.5 million.This was partially offset by an increase in commodity sales from production of$45.3 million dri

90、ven by increased production and lower income taxes of$43.9 million.Exhibit 3$millionsChange in Net IncomeThree Months Ended December 31506.345.329.7(147.8)(31.0)(13.4)(18.8)17.043.9(58.5)(2.4)370.3Q4 2023Commodity sales from productionRoyaltiesRisk management contractsOperating and transportationG&A

91、DD&A(1)Foreign exchangeIncome taxesGain on disposal(2)Other(3)Q4 20240200400600(1)Includes DD&A and impairment of PP&E.(2)Gain on disposal of crude oil and natural gas assets.(3)Includes sales of commodities purchased from third parties,interest and other income,commodities purchased from third part

92、ies,interest and financing,and impairment(reversal of impairment)of financial assets.14|2024 ANNUAL REPORT|ARC RESOURCES LTD.For the year ended December 31,2024,ARC recognized net income of$1.1 billion($1.88 per share)compared to$1.6 billion($2.61 per share)for the same period of the prior year.The$

93、472.4 million decrease in net income is primarily attributed to a decrease in commodity sales from production of$656.7 million,driven by a lower average realized commodity price.This was partially offset by a decrease in royalties of$181.9 million and lower income taxes of$129.9 million.Exhibit 3a$m

94、illionsChange in Net IncomeYear Ended December 311,596.5(656.7)181.9(81.7)(13.5)(35.9)45.1(28.3)129.9(13.2)1,124.12023Commodity sales from productionRoyaltiesRisk management contractsOperating and transportationG&ADD&A(1)Interest and financingIncome taxesOther(2)202402505007501,0001,2501,5001,750(1)

95、Includes DD&A and impairment of PP&E.(2)Includes gain on disposal of crude oil and natural gas assets,sales of commodities purchased from third parties,interest and other income,commodities purchased from third parties,loss on foreign exchange,and impairment(reversal of impairment)of financial asset

96、s.ARC RESOURCES LTD.|2024 ANNUAL REPORT|15Cash Flow from Operating Activities and Funds from OperationsCash flow from operating activities for the three months ended December 31,2024,was$650.9 million,a decrease of$48.0 million from ARCs fourth quarter 2023 cash flow from operating activities of$698

97、.9 million.For the year ended December 31,2024,cash flow from operating activities decreased to$2.3 billion from$2.4 billion for the same period in 2023.The decrease in cash flow from operating activities for the three months ended December 31,2024,compared to the same period in the prior year,refle

98、cts changes in non-cash operating working capital,partially offset by higher funds from operations.The decrease in cash flow from operating activities for the year ended December 31,2024,compared to the year ended December 31,2023,reflects lower funds from operations,partially offset by changes in n

99、on-cash operating working capital.ARC considers funds from operations to be a key measure of financial performance as it demonstrates ARCs ability to generate the necessary funds to maintain production at current levels and fund future growth through capital investment.Management believes that such

100、a measure provides an insightful assessment of financial performance on a continuing basis by eliminating certain non-cash charges and actual settlements of ARO,of which the nature and timing of expenditures are discretionary.Funds from operations is a capital management measure,which is not a stand

101、ardized measure and therefore may not be comparable with the calculation of similar measures by other entities.Refer to Note 15 Capital Management in the financial statements and to the section entitled“Non-GAAP and Other Financial Measures”contained within this MD&A.Table 4 is a reconciliation of A

102、RCs net income to funds from operations and its most directly comparable GAAP measure,cash flow from operating activities:Table 4Three Months EndedYear Ended($millions)September 30,2024December 31,2024December 31,2023December 31,2024December 31,2023Net income 328.9 370.3 506.3 1,124.1 1,596.5 Adjust

103、ed for the following non-cash items:Unrealized gain on risk management contracts(84.5)(9.5)(227.3)(82.4)(556.2)DD&A and impairment of PP&E 333.5 372.4 353.6 1,360.7 1,405.8 Unrealized loss(gain)on foreign exchange 21.0 (2.7)11.3 5.1 7.1 Gain on disposal of crude oil and natural gas assets(80.0)(58.5

104、)(80.0)(84.4)Deferred taxes 69.7 36.3 111.1 130.5 259.3 Other 3.8 3.6 2.7 14.5 11.5 Funds from operations 592.4 770.4 699.2 2,472.5 2,639.6 Net change in other liabilities(17.9)3.2 (1.6)(19.9)(9.3)Change in non-cash operating working capital(56.1)(122.7)1.3 (104.0)(236.0)Cash flow from operating act

105、ivities 518.4 650.9 698.9 2,348.6 2,394.3 ARC Resources Ltd.916|2024 ANNUAL REPORT|ARC RESOURCES LTD.Details of the change in funds from operations from the three months and year ended December 31,2023 to the three months and year ended December 31,2024 are included in Table 5 below:Table 5Three Mon

106、ths EndedYear EndedDecember 31December 31$millions$/share$millions$/shareFunds from operations 2023 699.2 1.16 2,639.6 4.32 Production volume varianceCrude oil and liquids 144.6 0.24 94.1 0.15 Natural gas 11.8 0.02 (15.3)(0.03)Commodity price varianceCrude oil and liquids(13.7)(0.02)(66.7)(0.10)Natu

107、ral gas(97.4)(0.16)(668.8)(1.10)Sales of commodities purchased from third parties(39.8)(0.07)(81.3)(0.13)Interest and other income 2.0 7.1 0.01 Realized gain on risk management contracts 70.0 0.12 392.1 0.64 Royalties 29.7 0.05 181.9 0.30 ExpensesCommodities purchased from third parties 41.7 0.07 64

108、.9 0.11 Operating(8.3)(0.01)(6.6)(0.01)Transportation(22.7)(0.04)(6.9)(0.01)G&A(13.4)(0.02)(35.9)(0.06)Interest and financing(4.7)(0.01)(27.4)(0.04)Current income tax(30.9)(0.05)1.1 Realized gain on foreign exchange 3.0 7.3 0.01 Other(0.7)(6.7)(0.01)Weighted average shares,diluted 0.02 0.10 Funds fr

109、om operations 2024 770.4 1.30 2,472.5 4.15 Funds from operations for the three months ended December 31,2024,was$770.4 million($1.30 per share),an increase of$71.2 million from$699.2 million($1.16 per share)for the three months ended December 31,2023.For the year ended December 31,2024,funds from op

110、erations was$2.5 billion($4.15 per share),a decrease of$167.1 million from$2.6 billion($4.32 per share)for the year ended December 31,2023.The increase in funds from operations for the three months ended December 31,2024,is primarily due to an increase in production,and a realized gain on risk manag

111、ement contracts compared to a realized loss in the same period of the prior year.This was partially offset by lower realized commodity prices,specifically natural gas and condensate prices,and an increase in current income tax.ARC RESOURCES LTD.|2024 ANNUAL REPORT|17Exhibit 4$millionsChange in Funds

112、 from OperationsThree Months Ended December 31699.2156.4(111.1)70.029.7(8.3)(22.7)(13.4)(30.9)1.5770.4Q4 2023VolumePriceRisk management contractsRoyaltiesOperatingTransportationG&A Current income taxOther(1)Q4 202405001,000(1)Includes sale of commodities purchased from third parties,commodities purc

113、hased from third parties,interest and other income,interest and financing,realized gain on foreign exchange,and other non-cash items.The decrease in funds from operations for the year ended December 31,2024,is primarily due to a lower average realized commodity price.This was partially offset by a r

114、ealized gain on risk management contracts compared to a realized loss in the same period of the prior year,and a decrease in royalties.Exhibit 4a$millionsChange in Funds from OperationsYear Ended December 312,639.678.8(735.5)392.1181.9(6.6)(6.9)(35.9)(27.4)(7.6)2,472.52023VolumePriceRisk management

115、contractsRoyaltiesOperatingTransportationG&AInterest and financingOther(1)202401,0002,0003,000(1)Includes sale of commodities purchased from third parties,commodities purchased from third parties,interest and other income,realized gain on foreign exchange,current income tax,and other non-cash items.

116、18|2024 ANNUAL REPORT|ARC RESOURCES LTD.Net Income SensitivityTable 6 illustrates sensitivities of operating items to business environment and operational changes and the resulting impact on net income:Table 6 Impact on Annual Net IncomeAssumptionChangeNotional Amount($millions)$/shareBusiness Envir

117、onment(1)Crude oil price($/bbl)(2)(3)91.46 10%268.6 0.45 Natural gas price($/Mcf)(2)2.37 10%148.1 0.25 Cdn$/US$exchange rate(2)(4)1.37 5%179.4 0.30 Interest rate on floating-rate debt(%)6.25 1%3.4 0.01 Operational(5)Crude oil and liquids production(bbl/d)130,053 5%129.7 0.22 Natural gas production(M

118、Mcf/d)1,307 5%3.4 0.01 Royalties($/boe)4.12 5%19.7 0.03 Operating($/boe)4.68 5%22.4 0.04 Transportation($/boe)5.21 5%24.9 0.04 G&A($/boe)1.95 5%9.3 0.02(1)Calculations are performed independently and may not be indicative of actual results that would occur when multiple variables change at the same

119、time.The subsequent impact on risk management contracts is not included.(2)Prices and rates are indicative of ARCs average realized commodity prices for the year ended December 31,2024.Refer to Table 10 contained within this MD&A for additional details.The calculated impact on net income is indicati

120、ve of changes in the underlying benchmark prices and differentials and would only be applicable within a limited range of these amounts.(3)Includes the impact on crude oil,condensate,and NGLs prices.(4)Includes impact of foreign exchange on crude oil,condensate,natural gas,and NGLs prices that are r

121、ealized in US dollars.(5)Operational assumptions are based upon results for the year ended December 31,2024 and the calculated impact on net income would only be applicable within a limited range of these amounts.Exhibit 5 Impact on annual net income($millions)Net Income Sensitivity(300)(200)(100)01

122、0020030010%change in crude oil price5%change in Cdn$/US$exchange rate10%change in natural gas price5%change in crude oil and liquids production volumes5%change in transportation5%change in operating5%change in royalties5%change in G&A5%change in natural gas production volumes1%change in interest rat

123、e on floating-rate debtARC RESOURCES LTD.|2024 ANNUAL REPORT|19ProductionTable 7 Three Months EndedYear EndedProductionSeptember 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeCrude oil(bbl/d)6,827 6,589 8,612 (23)6,972 8,364 (17)Condensate(bbl/d)81,690 96,388 7

124、7,193 25 80,294 75,516 6 NGLs(bbl/d)37,797 42,998 49,474 (13)42,787 47,760 (10)Crude oil and liquids(bbl/d)126,314 145,975 135,279 8 130,053 131,640 (1)Natural gas(MMcf/d)1,203 1,418 1,380 3 1,307 1,322 (1)Total production(boe/d)326,768 382,341 365,248 5 347,908 351,954 (1)Natural gas production(%)6

125、1 62 63 (1)63 63 Crude oil and liquids production(%)39 38 37 1 37 37 For the three months and year ended December 31,2024,total production increased five per cent and decreased one per cent,respectively,as compared to the same periods in the prior year.For the three months and year ended December 31

126、,2024,crude oil and liquids production increased eight per cent and decreased one per cent,respectively,as compared to the same periods in the prior year.The increase for the three months ended December 31,2024,was primarily due to new production from ARCs Attachie Phase I facility that was successf

127、ully commissioned in October 2024,along with new wells coming on-stream in the Greater Dawson area.The decrease for the year ended December 31,2024,was primarily due to downtime associated with scheduled maintenance activities in the Kakwa area,partially offset by new wells coming on-stream in the G

128、reater Dawson area.For the three months and year ended December 31,2024,natural gas production increased three per cent and decreased one per cent,respectively,compared to the same periods in the prior year.The increase for the three months ended December 31,2024,was primarily due to new production

129、from ARCs Attachie Phase I facility,along with new wells coming on-stream in the Greater Dawson and Kakwa areas,partially offset by the deliberate curtailment of production from the Sunrise area in response to low Western Canadian natural gas prices.The decrease for the year ended December 31,2024,w

130、as primarily due to downtime associated with scheduled maintenance activities in the Kakwa area and the deliberate curtailment of production from the Sunrise area.Exhibit 6bbl/dMMcf/dAverage Daily ProductionCrude oil(bbl/d)Condensate(bbl/d)NGLs(bbl/d)Natural gas(MMcf/d)Q1 2023Q2 2023Q3 2023Q4 2023Q1

131、 2024Q2 2024Q3 2024Q4 2024040,00080,000120,000160,00003006009001,2001,50020|2024 ANNUAL REPORT|ARC RESOURCES LTD.Table 8 summarizes ARCs production by core area for the three months ended December 31,2024 and December 31,2023:Table 8Three Months Ended December 31,2024ProductionTotalCrude OilCondensa

132、teNatural GasNGLsCore Area(boe/d)(bbl/d)(bbl/d)(MMcf/d)(bbl/d)Kakwa 195,362 20 74,497 543.4 30,276 Greater Dawson 98,149 776 12,466 459.0 8,412 Sunrise 52,545 452 311.8 134 Ante Creek 18,821 5,675 667 63.6 1,874 Attachie 16,950 8,305 40.2 1,952 All other 514 118 1 0.2 350 Total 382,341 6,589 96,388

133、1,418.2 42,998 Three Months Ended December 31,2023ProductionTotalCrude OilCondensateNatural GasNGLsCore Area(boe/d)(bbl/d)(bbl/d)(MMcf/d)(bbl/d)Kakwa 190,013 21 64,663 508.8 40,531 Greater Dawson 90,124 809 10,531 428.0 7,457 Sunrise 63,250 354 376.7 109 Ante Creek 19,405 7,594 568 57.7 1,625 Attach

134、ie 2,295 1,075 6.9 65 All other 161 188 2 1.7 (313)Total 365,248 8,612 77,193 1,379.8 49,474 Exhibit 7Production by Core AreaThree Months Ended December 31,202451%26%14%5%4%KakwaGreater DawsonSunriseAnte CreekAttachieARC RESOURCES LTD.|2024 ANNUAL REPORT|21Table 8a summarizes ARCs production by core

135、 area for the years ended December 31,2024 and December 31,2023:Table 8a Year Ended December 31,2024ProductionTotalCrude OilCondensateNatural GasNGLsCore Area(boe/d)(bbl/d)(bbl/d)(MMcf/d)(bbl/d)Kakwa 177,852 19 64,555 486.3 32,228 Greater Dawson 93,556 607 11,452 441.3 7,941 Sunrise 49,997 333 297.4

136、 105 Ante Creek 19,517 6,237 626 65.0 1,821 Attachie 6,659 3,327 16.6 558 All other 327 109 1 0.5 134 Total 347,908 6,972 80,294 1,307.1 42,787 Year Ended December 31,2023ProductionTotalCrude OilCondensateNatural GasNGLsCore Area(boe/d)(bbl/d)(bbl/d)(MMcf/d)(bbl/d)Kakwa 189,741 17 64,465 518.1 38,90

137、3 Greater Dawson 87,891 844 8,968 426.0 7,079 Sunrise 51,412 346 305.9 93 Ante Creek 19,994 7,302 576 62.3 1,729 Attachie 2,435 1,144 7.4 63 All other 481 201 17 2.2 (107)Total 351,954 8,364 75,516 1,321.9 47,760 Exhibit 7aProduction by Core AreaYear Ended December 31,202451%27%14%6%2%KakwaGreater D

138、awsonSunriseAnte CreekAttachie22|2024 ANNUAL REPORT|ARC RESOURCES LTD.Commodity Sales from ProductionFor the three months and year ended December 31,2024,commodity sales from production increased by three per cent and decreased by 12 per cent,respectively,as compared to the same periods in 2023.The

139、increase for the three months ended December 31,2024 is primarily due to an increase in production volumes.The decrease for the year ended December 31,2024 is primarily due to a lower average realized commodity price,driven by a decrease in natural gas prices.A breakdown of commodity sales from prod

140、uction by product and percentage of commodity sales from production by product type is outlined in Tables 9 and 9a:Table 9Three Months EndedYear EndedCommodity Sales from Production,by Product Type($millions)September 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%Cha

141、ngeCrude oil 57.9 55.5 74.0 (25)233.4 290.2 (20)Condensate 716.7 847.0 703.7 20 2,850.7 2,754.1 4 Natural gas 197.1 336.9 422.5 (20)1,134.6 1,818.7 (38)NGLs 82.7 106.1 100.0 6 385.0 397.4 (3)Commodity sales from production 1,054.4 1,345.5 1,300.2 3 4,603.7 5,260.4 (12)Table 9aThree Months EndedYear

142、Ended%of Commodity Sales from Production by Product TypeSeptember 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeCrude oil and liquids 81 75 68 7 75 65 10 Natural gas 19 25 32 (7)25 35 (10)Commodity sales from production 100 100 100 100 100 Exhibit 8Commodity Sa

143、les from Production by Product TypeThree Months EndedDecember 31,20244%63%25%8%Crude oilCondensateNatural gasNGLsCommodity Sales from Production by Product TypeYear EndedDecember 31,20245%62%25%8%Crude oilCondensateNatural gasNGLsARC RESOURCES LTD.|2024 ANNUAL REPORT|23Commodity PricesA listing of b

144、enchmark commodity prices and ARCs average realized commodity prices are outlined in Table 10:Table 10Three Months EndedYear EndedSeptember 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeAverage Benchmark PricesWTI crude oil(US$/bbl)75.27 70.32 78.53 (10)75.76 7

145、7.60 (2)Cdn$/US$exchange rate 1.36 1.40 1.36 3 1.37 1.35 1 WTI crude oil(Cdn$/bbl)102.37 98.45 106.80 (8)103.79 104.76 (1)Peace Sour Price at Edmonton(Cdn$/bbl)94.09 92.16 93.31 (1)93.13 94.06 (1)Condensate Stream Price at Edmonton (Cdn$/bbl)97.59 99.37 104.87 (5)100.36 103.56 (3)NYMEX Henry Hub Las

146、t Day Settlement (US$/MMBtu)2.16 2.79 2.88 (3)2.27 2.74 (17)Chicago Citygate Monthly Index(US$/MMBtu)1.76 2.71 2.63 3 2.14 2.81 (24)AECO 7A Monthly Index(Cdn$/Mcf)0.81 1.46 2.66 (45)1.44 2.93 (51)ARC Average Realized Commodity Prices(1)Crude oil($/bbl)92.22 91.46 93.34 (2)91.46 95.05 (4)Condensate($

147、/bbl)95.38 95.52 99.09 (4)97.00 99.92 (3)Natural gas($/Mcf)1.78 2.58 3.33 (23)2.37 3.77 (37)NGLs($/bbl)23.77 26.83 21.97 22 24.59 22.79 8 Average realized commodity price($/boe)35.07 38.25 38.69 (1)36.15 40.95 (12)(1)Refer to the section entitled Non-GAAP and Other Financial Measures contained withi

148、n this MD&A for an explanation of composition.Benchmark Commodity PricesAverage WTI crude oil prices decreased seven per cent in the fourth quarter of 2024 compared to the prior quarter and 10 per cent compared to the fourth quarter of 2023.During the quarter,weak economic data from key crude oil-co

149、nsuming regions continued to weigh on growth expectations,while concerns of a potential supply disruption related to Middle Eastern conflicts eased.This was partially offset as several crude oil-producing nations elected to defer previously planned production increases.The Edmonton condensate benchm

150、ark price increased two per cent in the fourth quarter of 2024 compared to the prior quarter and decreased five per cent compared to the fourth quarter of 2023.Canadian condensate prices increased relative to benchmark WTI prices with seasonally higher oil sands diluent blending demand.Average NYMEX

151、 Henry Hub natural gas prices increased 29 per cent in the fourth quarter of 2024 compared to the prior quarter and decreased three per cent compared to the fourth quarter of 2023.The increase during the quarter can be attributed to strong consumption and relatively stable US production levels allev

152、iating market concerns over elevated inventory levels.The AECO 7A Monthly Index increased 80 per cent in the fourth quarter of 2024 compared to the prior quarter and decreased 45 per cent compared to the fourth quarter of 2023.Prices increased during the quarter due to high export levels,supply curt

153、ailments,and indications of greater local inventory capacity than previously anticipated.ARCs Average Realized Commodity PricesFor the three months and year ended December 31,2024,ARCs average realized crude oil price decreased two per cent and four per cent,respectively,compared to the same periods

154、 in 2023.The decrease for the three months and year ended December 31,2024 reflects a decrease in the WTI benchmark price,partially offset by narrower differentials between WTI and Peace Sour benchmark prices,compared to the same periods of the prior year.For the three months and year ended December

155、 31,2024,ARCs average realized condensate price decreased four per cent and three per cent,respectively,compared to the same periods of the prior year.The decrease for the three months ended December 31,2024,primarily reflects a decrease in the WTI benchmark price,partially offset with Edmonton cond

156、ensate benchmark prices trading at a premium to WTI,as compared to a discount for the same period of the prior year.The decrease for the year ended December 31,2024,is primarily due to a wider differential between WTI and Edmonton condensate benchmark prices,compared to the prior year.24|2024 ANNUAL

157、 REPORT|ARC RESOURCES LTD.ARCs natural gas sales are physically diversified to multiple sales points within North America,each with different index-based pricing.ARCs average realized natural gas price decreased 23 per cent and 37 per cent for the three months and year ended December 31,2024,respect

158、ively,compared to the same periods of the prior year.The decrease is primarily due to benchmark price declines in North American markets.Exhibit 9Natural Gas Sales by Sales Point Three Months Ended December 31,202436%24%10%10%9%11%AECOUS MidwestUS Gulf CoastPacific NorthwestStation 2Empress/Emerson/

159、DawnNatural Gas Sales by Sales Point Year EndedDecember 31,202435%28%10%11%7%9%AECOUS MidwestUS Gulf CoastPacific NorthwestStation 2Empress/Emerson/DawnDuring the year ended December 31,2024,as part of its natural gas market diversification strategy,ARC entered into a long-term liquefaction tolling

160、services agreement and other ancillary agreements(the Agreements)with Cedar LNG Partners LP(Cedar LNG),a partnership between the Haisla Nation and Pembina Pipeline Corporation,advancing the Cedar LNG Project(the Project).ARC will deliver approximately 200 MMcf per day of natural gas for liquefaction

161、 by the Project for a term of 20 years commencing with commercial operations,anticipated in late 2028.In 2024,Cedar LNG announced a positive final investment decision for the project,satisfying all the conditions precedent of the Agreement.In addition to the agreement with Cedar LNG,ARC entered into

162、 a non-binding Heads of Agreement with an investment-grade rated company for the associated liquefied natural gas(LNG)offtake,the equivalent of approximately 1.5 million tonnes per annum of LNG.ARC RESOURCES LTD.|2024 ANNUAL REPORT|25Risk Management ContractsThe fair value of ARCs risk management co

163、ntracts at December 31,2024 was a net asset of$306.1 million,representing the expected value of settlement of ARCs contracts at the balance sheet date after adjustments for credit risk.This comprises a net asset of$37.4 million from crude oil contracts,a net asset of$285.2 million from natural gas c

164、ontracts,and a net liability of$16.5 million from foreign currency contracts.Exhibit 10$millionsChange in Risk Management Net AssetSeptember 30,2024 to December 31,2024296.565.7(3.1)(53.0)306.1September 30,2024Change in priceNew transactionsSettled positionsDecember 31,2024100200300400$millionsChang

165、e in Risk Management Net AssetDecember 31,2023 to December 31,2024224.9203.580.3(202.6)306.1December 31,2023Change in priceNew transactionsSettled positionsDecember 31,2024100200300400500600Tables 11 and 11a summarize the gain or loss on risk management contracts for the three months and year ended

166、December 31,2024 compared to the same periods in 2023:Table 11 Risk Management Contracts($millions)Crude Oil&CondensateNatural GasEmbedded Derivative(1)NGLs and Foreign CurrencyQ4 2024 TotalQ4 2023 TotalRealized gain(loss)on risk management contracts(2)0.7 53.1 (4.1)49.7 (20.3)Unrealized gain(loss)o

167、n risk management contracts(3)(18.1)43.9 5.2 (21.5)9.5 227.3 Gain(loss)on risk management contracts(17.4)97.0 5.2 (25.6)59.2 207.0(1)Represents the change in fair value of embedded derivatives contained within certain natural gas sales contracts.(2)Represents actual cash settlements under the respec

168、tive contracts recognized in net income during the period.(3)Represents the change in fair value of the contracts recognized in net income during the period.26|2024 ANNUAL REPORT|ARC RESOURCES LTD.Table 11a Risk Management Contracts($millions)Crude Oil&CondensateNatural GasEmbedded Derivative(1)NGLs

169、 and Foreign Currency2024 Total2023 TotalRealized gain(loss)on risk management contracts(2)(20.4)215.0 (4.3)190.3 (201.8)Unrealized gain(loss)on risk management contracts(3)19.1 72.1 31.2 (40.0)82.4 556.2 Gain(loss)on risk management contracts(1.3)287.1 31.2 (44.3)272.7 354.4(1)Represents the change

170、 in fair value of embedded derivatives contained within certain natural gas sales contracts.(2)Represents actual cash settlements under the respective contracts recognized in net income during the period.(3)Represents the change in fair value of the contracts recognized in net income during the peri

171、od.ARCs realized gain on risk management contracts for the three months and year ended December 31,2024,primarily reflects cash settlements received on AECO natural gas contracts.The realized gain on risk management contracts for the three months and year ended December 31,2024,compared to a realize

172、d loss on risk management contracts for the same periods of the prior year,is primarily the result of lower average commodity prices relative to contract prices.ARCs unrealized gain on risk management contracts for the three months ended December 31,2024,primarily reflects the revaluation of AECO ba

173、sis natural gas contracts outstanding with lower forward pricing.The decrease in unrealized gain on risk management contracts for the three months ended December 31,2024,compared to the same period of the prior year,primarily reflects an increase in contract settlements as well as the result of lowe

174、r average commodity prices relative to contract prices.ARCs unrealized gain on risk management contracts for the year ended December 31,2024,primarily reflects the revaluation of AECO and AECO basis natural gas contracts with lower forward pricing,as well as widening differentials between North Amer

175、ican and international benchmark prices.As compared to the same period of the prior year,the decrease in ARCs unrealized gain on risk management contracts for the year ended December 31,2024,primarily reflects an increase in contract settlements,as well as the result of lower average commodity price

176、s relative to contract prices.Embedded DerivativesARC is party to two separate long-term natural gas supply agreements,whereby ARC will deliver natural gas to specified North American delivery points and receive international pricing in exchange.These contracts have been determined to contain embedd

177、ed derivatives that are required by IFRS Accounting Standards to be valued separately from their host contracts.Table 12 summarizes the details of the agreements:Table 12Volume(MMBtu/d)TermDelivery PointPricing FormulaAnticipated CommencementJKM Agreement140,00015 yearsChicagoJKM less transport&liqu

178、efaction 2027 TTF Agreement140,00015 yearsGulf CoastTTF less transport,liquefaction®asification 2029 In respect of these contracts,ARC recognized an unrealized gain on risk management contracts of$5.2 million and$31.2 million for the three months and year ended December 31,2024(unrealized gain of

179、$12.5 million and unrealized loss of$2.0 million for the year ended December 31,2023),respectively.At December 31,2024,the combined fair value of the embedded derivatives was$25.2 million(liability of$6.0 million at December 31,2023).The combined fair value reflects the estimated differentials betwe

180、en forward pricing at the respective delivery points and those contained in the pricing formulas.Due to the long-term nature of these agreements and multiple variables impacting the estimated valuations,it is anticipated that the estimated fair value of the embedded derivatives will fluctuate over t

181、ime as the agreements mature.For further information,refer to Note 16 Financial Instruments and Market Risk Management in the financial statements.ARC RESOURCES LTD.|2024 ANNUAL REPORT|27Netback and Netback per boeThe components of ARCs netback and netback per boe for the three months and year ended

182、 December 31,2024 compared to the same periods in 2023 are summarized in Tables 13 and 13a:Table 13Three Months EndedYear EndedNetback($millions)(1)September 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeCommodity sales from production 1,054.4 1,345.5 1,300.2 3

183、 4,603.7 5,260.4 (12)Royalties(123.0)(143.1)(172.8)(17)(524.9)(706.8)(26)Operating(147.3)(146.9)(138.6)6 (596.4)(589.8)1 Transportation(157.7)(177.0)(154.3)15 (662.9)(656.0)1 Netback 626.4 878.5 834.5 5 2,819.5 3,307.8 (15)(1)Non-GAAP financial measure that does not have any standardized meaning und

184、er IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other entities.Refer to the section entitled Non-GAAP and Other Financial Measures contained within this MD&A.Table 13a Three Months EndedYear EndedNetback per boe($per boe)(1)September 30,2024December

185、31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeCommodity sales from production(2)35.07 38.25 38.69 (1)36.15 40.95 (12)Royalties(2)(4.09)(4.07)(5.14)(21)(4.12)(5.50)(25)Operating(4.90)(4.18)(4.13)1 (4.68)(4.59)2 Transportation(5.25)(5.03)(4.59)10 (5.21)(5.11)2 Netback per boe 20

186、.83 24.97 24.83 1 22.14 25.75 (14)(1)Non-GAAP ratio that does not have any standardized meaning under IFRS Accounting Standards and therefore may not be comparable to similar ratios presented by other entities.Includes a non-GAAP financial measure component of netback.Refer to the section entitled N

187、on-GAAP and Other Financial Measures contained within this MD&A.(2)Refer to the section entitled Non-GAAP and Other Financial Measures contained within this MD&A for an explanation of composition.Exhibit 11$millions$per boeNetback and Netback per boeNetbackNetback per boeQ1 2023Q2 2023Q3 2023Q4 2023

188、Q1 2024Q2 2024Q3 2024Q4 202402505007501,0001,2500.0010.0020.0030.0040.0028|2024 ANNUAL REPORT|ARC RESOURCES LTD.RoyaltiesRoyalties for the three months and year ended December 31,2024 decreased 17 per cent and 26 per cent,respectively,to$143.1 million and$524.9 million($172.8 million and$706.8 milli

189、on for the same periods in 2023).Royalties as a percentage of commodity sales from production(1)decreased to 11 per cent($4.07 per boe)in the fourth quarter of 2024,from 13 per cent($5.14 per boe)in the fourth quarter of 2023.Royalties as a percentage of commodity sales from production decreased to

190、11 per cent($4.12 per boe)for the year ended December 31,2024 from 13 per cent($5.50 per boe)for the prior year.The decrease in royalties and royalties as a percentage of commodity sales for the three months and year ended December 31,2024,is due to lower realized commodity prices,specifically natur

191、al gas and condensate prices,as compared to the same periods in 2023.(1)Refer to the section entitled Non-GAAP and Other Financial Measures contained within this MD&A for an explanation of composition.Exhibit 12$millions%of Commodity SalesRoyaltiesCrude oilCondensateNatural gasNGLsRoyalties as a per

192、centage of commodity sales from productionQ1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024(50)05010015020025030035005101520OperatingOperating expense for the three months ended December 31,2024 was$146.9 million,an increase of six per cent from$138.6 million for the three months ended Decemb

193、er 31,2023.For the year ended December 31,2024,operating expense was$596.4 million,an increase of one per cent from$589.8 million for the year ended December 31,2023.The increase in operating expense for the three months ended December 31,2024,as compared to the same period of the prior year,is prim

194、arily due to higher water hauling costs in the Kakwa area.The increase in operating expense for the year ended December 31,2024,as compared to the same period in the prior year,primarily reflects higher scheduled maintenance activity in the Greater Dawson area,partially offset by lower processing fe

195、es in the Kakwa area.Operating expense per boe for the three months ended December 31,2024 was$4.18 per boe,an increase of one per cent from$4.13 per boe for the three months ended December 31,2023.For the year ended December 31,2024,operating expense was$4.68 per boe,an increase of two per cent fro

196、m$4.59 per boe in the same period of the prior year.ARC RESOURCES LTD.|2024 ANNUAL REPORT|29Exhibit 13$millions$per boeOperating ExpenseOperating expenseOperating expense per boeQ1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024040801201602000.002.004.006.008.00TransportationTransportation exp

197、ense for the three months and year ended December 31,2024 was$177.0 million and$662.9 million,an increase of 15 per cent and one per cent,from$154.3 million and$656.0 million for the three months and year ended December 31,2023,respectively.The increase in transportation expense for the three months

198、 ended December 31,2024,relative to the same period in 2023,is primarily due to increased condensate transportation costs,reflecting the increase in condensate production,and increases in natural gas pipeline tariffs.The increase in transportation expense for the year ended December 31,2024,relative

199、 to the prior year,is primarily due to increases in natural gas pipeline tariffs,partially offset by lower trucking costs and lower fuel gas charges.Transportation expense per boe for the three months and year ended December 31,2024 was$5.03 per boe and$5.21 per boe,an increase of 10 per cent and tw

200、o per cent from$4.59 per boe and$5.11 per boe for the three months and year ended December 31,2023,respectively.Exhibit 14$millions$per boeTransportation ExpenseTransportation expenseTransportation expense per boeQ1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024040801201602000.002.004.006.008

201、.0030|2024 ANNUAL REPORT|ARC RESOURCES LTD.G&AG&A expense before share-based compensation expense decreased 10 per cent to$43.3 million for the three months ended December 31,2024 from$48.0 million for the three months ended December 31,2023.The decrease is primarily due to a decrease of consulting

202、costs associated with an enterprise system implementation project that commenced in the fourth quarter of 2023 and concluded in 2024.For the year ended December 31,2024,ARCs G&A expense before share-based compensation expense was$163.3 million,an eight per cent increase from$151.7 million during the

203、 same period of the prior year.The increase for the year ended December 31,2024 is primarily due to increased consulting and information technology costs related to the enterprise system implementation project.During the three months and year ended December 31,2024,ARC recognized G&A expense of$22.6

204、 million and$84.8 million,respectively,associated with its share-based compensation plans,compared to$4.5 million and$60.5 million during the same periods of the prior year.The change for the three months and year ended December 31,2024,compared to the same periods of the prior year,reflects the rev

205、aluation of the liability associated with ARCs share-based compensation,based on the movement of ARCs share price and the average performance multiplier associated with certain of its plans.Table 14 is a breakdown of G&A expense:Table 14Three Months EndedYear EndedG&A Expense($millions,except per bo

206、e)September 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeG&A expense before share-based compensation expense 35.8 43.3 48.0 (10)163.3 151.7 8 G&A share-based compensation expense 9.3 22.6 4.5 402 84.8 60.5 40 G&A expense 45.1 65.9 52.5 26 248.1 212.2 17 G&A ex

207、pense before share-based compensation expense per boe 1.19 1.23 1.43 (14)1.28 1.18 8 G&A share-based compensation expense per boe 0.31 0.64 0.13 392 0.67 0.47 43 G&A expense per boe 1.50 1.87 1.56 20 1.95 1.65 18 Exhibit 15$/boeG&A Expense(Recovery)G&A before share-based compensationShare-based comp

208、ensationG&A expenseQ1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024-0.500.000.501.001.502.002.503.00ARC RESOURCES LTD.|2024 ANNUAL REPORT|31Share-based Compensation PlansARCs share-based,long-term incentive plans result in employees,officers and directors(the plan participants)receiving cash

209、 compensation in relation to the value of a specified number of underlying notional share awards.Collectively,ARCs long-term incentive plans are comprised of Restricted Share Unit(RSU),Performance Share unit(PSU),and Deferred Share Unit(DSU)plans.ARC also has certain share-based compensation plans t

210、hat were acquired through a business combination which are eligible for continuation and exercise(the Acquired Plans).RSU Plans and PSU PlansAwards under the RSU and PSU Plans consist of RSUs for which the number of share awards is fixed and will vest evenly over a period of three years and PSUs for

211、 which the number of share awards is variable and will vest at the end of three years.Upon vesting of the RSUs,the plan participant receives a cash payment based on the fair value of the underlying share awards plus all dividends accrued since the grant date.The cash compensation of the PSUs issued

212、upon vesting is further dependent upon an adjustment to the final number of PSU awards that eventually vest based on a performance multiplier.The performance multiplier is determined using two criteria:50 per cent of the performance multiplier is based on ARCs relative total shareholder return perfo

213、rmance compared to a defined peer group,and 50 per cent of the performance multiplier is dependent on an overall assessment of achievements based on a predetermined corporate scorecard.The performance multiplier is calculated at the time of payment and can result in cash compensation issued upon ves

214、ting of the PSUs ranging from zero to two times the value of the PSU awards originally granted.At December 31,2024,ARC had 1.6 million RSUs and 2.9 million PSUs outstanding under these plans.For the three months and year ended December 31,2024,ARC recognized G&A in relation to its RSU and PSU Plans

215、of$18.4 million and$73.7 million($5.9 million and$54.9 million for the three months and year ended December 31,2023),respectively.The change in expense recognized for the three months and year ended December 31,2024 reflects the change in valuation of awards outstanding throughout the respective per

216、iods.Exhibit 16$/shareperformance multiplierARC Share Price and Performance MultiplierARCs share price(1)Average performance multiplierQ1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 20240.005.0010.0015.0020.0025.0030.000.01.02.0(1)Denotes ARCs closing share price on the Toronto Stock Exchange(T

217、SX)on the last trading day of each respective quarter.32|2024 ANNUAL REPORT|ARC RESOURCES LTD.Table 15 shows the changes to the outstanding RSU and PSU awards during the year ended December 31,2024:Table 15 RSU and PSU Plans(number of awards,thousands)RSUsPSUs(1)Total RSUs and PSUsBalance,December 3

218、1,20231,9853,5165,501Granted7442,1092,853Distributed(1,078)(2,644)(3,722)Forfeited(97)(119)(216)Balance,December 31,20241,5542,8624,416(1)Based on underlying awards before any effect of the performance multiplier.At December 31,2024,there are an additional 3,000 RSU awards outstanding related to the

219、 Acquired Plans.These awards are eligible to be settled in cash or equity and are set to expire in 2025.Due to the variability in the expected future payments under the plans,ARC estimates that between$40.5 million and$189.7 million could be paid out in 2025 through 2027 based on possible future cha

220、nges to ARCs period-end share price,accrued dividends,market performance relative to peers,and corporate scorecard results.Table 16 is a summary of the range of future expected payments under the RSU and PSU Plans based on variability of the performance multiplier and awards outstanding under the RS

221、U and PSU Plans as at December 31,2024:Table 16Value of RSU and PSU Awards as at December 31,2024Performance Multiplier(awards thousands and$millions,except per share)1.02.0Estimated awards to vest(1)RSUs1,5541,5541,554PSUs 2,862 5,724 Total awards1,5544,4167,278Share price(2)26.07 26.07 26.07 Value

222、 of RSU and PSU awards upon vesting 40.5 115.1 189.7 2025 22.2 47.6 73.0 2026 12.5 39.1 65.7 2027 5.8 28.4 51.0(1)Includes additional estimated awards to be issued under the RSU and PSU Plans for dividends accrued to-date.(2)Per share outstanding.Values will fluctuate over the vesting period based o

223、n the volatility of the underlying share price.Assumes a future share price equal to the TSX closing price at December 31,2024.Share Option PlansARC has a Share Option Plan,whereby granting of new share option awards was suspended in 2019.Remaining share options vest evenly on the fourth and fifth a

224、nniversary of their grant date and have a maximum term of seven years.The option holder has the right to exercise the options and purchase one common share per option at the original grant price or at a reduced exercise price,equal to the grant price less all dividends paid subsequent to the grant d

225、ate and prior to the exercise date.ARC also has certain share options remaining under the Acquired Plans which vest annually over three years and expire 10 years after the date of grant.The final grant was in 2019.The option holder has the right to exercise the options and purchase one common share

226、per option at the original grant price.The original grant price under ARCs Share Option Plan and the Acquired Plans is calculated as the weighted average trading price of ARC common shares for the five days immediately preceding the grant date.At December 31,2024,ARC had 0.3 million share options ou

227、tstanding under ARCs Share Option Plan,with a weighted average exercise price of$10.01.At December 31,2024,ARC had 0.7 million share options outstanding under the Acquired Plans,with a weighted average exercise price of$21.45.All share options were exercisable at December 31,2024.ARC RESOURCES LTD.|

228、2024 ANNUAL REPORT|33Long-term Restricted Share Award(LTRSA)Plan Issuance of new awards under the LTRSA plan were suspended in 2021.Previously granted LTRSA consist of restricted common shares that were awarded at the date of grant and a cash payment made equal to the estimated personal tax obligati

229、on associated with the total award.The restricted shares issued on the grant date of the award are held in trust until the vesting conditions have been met.In 2020,the LTRSA Plan was amended to extend the vesting schedule from three years to five years and to adjust the calculation of the service pe

230、riod.While in trust,the restricted shares earn cash dividends that are reinvested into the purchase of ARC common shares.These re-invested common shares issued are also held in trust until vested.LTRSA awards granted prior to 2020 vest evenly on the eighth,ninth,and tenth anniversaries of their resp

231、ective grant dates.LTRSA awards granted subsequent to 2019 vest evenly on the sixth,seventh,eighth,ninth,and tenth anniversaries of their respective grant dates.Restricted shares and any accrued dividends that are subject to forfeiture will be redeemed and cancelled by ARC.Compensation expense assoc

232、iated with cash payment is recognized at the fair value on the grant date,while expense associated with the restricted common shares is estimated as the fair value of the award equal to the previous five-day weighted average trading price of ARC shares on the TSX on the grant date and is recognized

233、over the vesting period.At December 31,2024,ARC had 0.9 million restricted shares outstanding under the LTRSA Plan.ARC recognized G&A of$0.1 million and$0.9 million relating to the LTRSA Plan during the three months and year ended December 31,2024($0.3 million and$1.1 million for the three months an

234、d year ended December 31,2023),respectively.DSU PlansARC offers a DSU Plan to non-employee directors,under which each director receives a minimum of 60 per cent of their total annual remuneration in the form of DSUs.DSU awards fully vest on the date of grant,but are only available for redemption whe

235、n the director ceases to be a member of ARCs board of directors(the Board).Awards are settled in cash and are determined by the value of the underlying common shares at the time of settlement.ARC also has DSUs remaining under the Acquired Plans.Approximately 34 per cent of these awards are eligible

236、to be settled in equity,with the remainder to be settled in cash.At December 31,2024,ARC had 0.8 million DSUs outstanding under the DSU Plans and 0.3 million DSUs outstanding under the Acquired Plans.For the three months and year ended December 31,2024,G&A of$4.1 million and$10.2 million was recogni

237、zed in relation to the DSU Plans(G&A recovery of$1.7 million and G&A expense of$4.4 million for the three months and year ended December 31,2023),respectively.Interest and FinancingInterest and financing expense for the three months and year ended December 31,2024 was$36.2 million and$133.8 million(

238、$1.03 per boe and$1.05 per boe),respectively,compared to$31.6 million and$105.5 million($0.94 per boe and$0.82 per boe)for the same periods of the prior year.The increase for the three months and year ended December 31,2024,as compared to the same periods of the prior year,is primarily the result of

239、 an increase in the amount of long-term debt outstanding and an increase in short-term borrowing costs related to draws on ARCs credit facility.Additionally,the increase for the year ended December 31,2024,also reflects an increase in financing expense associated with additions and modifications to

240、lease obligations.A breakdown of interest and financing expense is shown in Table 17:Table 17Three Months EndedYear EndedInterest and Financing($millions,except per boe amounts)September 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeBank debt and long-term note

241、s 16.7 19.5 13.9 40 65.7 51.1 29 Lease obligations 13.6 13.1 14.0 (6)54.0 41.2 31 Accretion on ARO 3.5 3.6 3.7 (3)14.1 13.2 7 Interest and financing 33.8 36.2 31.6 15 133.8 105.5 27 Interest and financing per boe1.121.030.94 10 1.050.82 28 ARC Resources Ltd.2734|2024 ANNUAL REPORT|ARC RESOURCES LTD.

242、Foreign Exchange Gain and LossTable 18 details the realized and unrealized components of ARCs foreign exchange gain and loss:Table 18Three Months EndedYear EndedForeign Exchange Gain and Loss($millions)September 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeUnr

243、ealized gain(loss)on US dollar-denominated accounts receivable(21.0)2.7 (11.3)124 (5.1)(7.1)28 Realized gain(loss)on US dollar-denominated transactions(1.5)3.5 0.5 600 3.8 (3.5)209 Foreign exchange gain(loss)(22.5)6.2 (10.8)157 (1.3)(10.6)88 Exhibit 17Cdn$/US$Cdn$/US$Exchange RatesQ1 2023Q2 2023Q3 2

244、023Q4 2023Q1 2024Q2 2024Q3 2024Q4 20241.201.301.401.50For the three months and year ended December 31,2024,ARC recognized an unrealized loss on foreign currency translation adjustment in other comprehensive income of$0.5 million and an unrealized gain of$11.7 million(unrealized gain of$4.4 million a

245、nd$5.2 million for the three months and year ended December 31,2023),respectively.TaxesARC recognized current income tax of$72.4 million and$200.4 million for the three months and year ended December 31,2024,respectively,compared to$41.5 million and$201.5 million for the same periods in 2023.The inc

246、rease for the three months ended December 31,2024,as compared to the same period of the prior year,is primarily due to higher expected taxable income as a result of increased production volumes.For the three months ended December 31,2024,ARC recognized deferred income tax of$36.3 million,compared to

247、$111.1 million for the same period in 2023.The decrease primarily relates to a lower unrealized gain on risk management contracts and lower income tax pools claimed relative to DD&A expense for the three months ended December 31,2024,as compared to the same period of 2023.For the year ended December

248、 31,2024,ARC recognized deferred income tax of$130.5 million,compared to$259.3 million for the same period in 2023.The decrease primarily relates to a lower unrealized gain on risk management contracts for the year ended December 31,2024,as compared to the same period of 2023.ARC RESOURCES LTD.|2024

249、 ANNUAL REPORT|35The income tax pools,which are detailed in Table 19,are deductible at various rates and annual deductions associated with the initial tax pools will decline over time.Table 19 Income Tax Pool Type($millions)December 31,2024Annual DeductibilityCanadian oil and gas property expense 78

250、8.6 10%declining balanceCanadian development expense 1,881.5 30%declining balanceUndepreciated capital cost 1,769.8 Primarily 25%declining balanceOther 31.2 Various rates,5%declining balance to 20%Total federal tax pools 4,471.1 DD&A and Impairment of PP&EFor the three months and year ended December

251、 31,2024,ARC recognized DD&A of$372.4 million and$1.4 billion,respectively,compared to$353.6 million and$1.4 billion for the three months and year ended December 31,2023.The increase in DD&A for the three months ended December 31,2024 compared to the same period in the prior year,is primarily due to

252、 increased production volumes.The decrease for the year ended December 31,2024 compared to the prior year,is primarily due to a lower DD&A rate reflecting updated reserves and future development costs.A breakdown of DD&A expense is summarized in Table 20:Table 20Three Months EndedYear EndedDD&A Expe

253、nse($millions,except per boe amounts)September 30,2024December 31,2024December 31,2023%ChangeDecember 31,2024December 31,2023%ChangeDepletion of crude oil and natural gas assets 310.7 349.3 326.7 7 1,263.0 1,307.7 (3)Depreciation of corporate assets 1.3 1.7 5.9 (71)9.1 22.2 (59)Depreciation of right

254、-of-use(ROU)assets under lease 21.5 21.4 21.0 2 85.4 73.0 17 DD&A expense 333.5 372.4 353.6 5 1,357.5 1,402.9 (3)DD&A expense per boe(1)11.09 10.59 10.52 1 10.66 10.92 (2)(1)Refer to the section entitled Non-GAAP and Other Financial Measures contained within this MD&A for an explanation of compositi

255、on.For the year ended December 31,2024,ARC recognized impairment charges of$3.2 million($2.9 million for the year ended December 31,2023),related to certain non-core assets.36|2024 ANNUAL REPORT|ARC RESOURCES LTD.Cash Flow used in Investing Activities,Capital Expenditures,Acquisitions,and Dispositio

256、nsARCs cash flow used in investing activities was$423.3 million and$1.9 billion during the three months and year ended December 31,2024,respectively,compared to$434.3 million and$1.7 billion for the three months and year ended December 31,2023.In addition to cash flow used in investing activities,Ma

257、nagement uses the non-GAAP financial measure of capital expenditures to monitor its capital investments relative to those budgeted by the Company on an annual basis.ARC excludes acquisition and disposition activities from its annual capital expenditure budget,as well as the accounting impact of any

258、accrual changes or payments under certain lease arrangements.Refer to Table 24 in the section entitled Non-GAAP and Other Financial Measures contained within this MD&A for a reconciliation of ARCs capital expenditures to its most directly comparable GAAP measure,cash flow used in investing activitie

259、s.Capital expenditures were$350.0 million and$1.8 billion for the three months and year ended December 31,2024,respectively,compared to$544.5 million and$1.8 billion for the three months and year ended December 31,2023.Capital expenditures for the three months and year ended December 31,2024 include

260、d the drilling of 34 and 159 crude oil and natural gas wells and the completion of 35 and 144 crude oil and natural gas wells,respectively,across ARCs asset base.Additional investment during the three months and year ended December 31,2024 was focused on ARCs Attachie Phase I facility,which was succ

261、essfully commissioned in October 2024.During the year ended December 31,2024,ARC disposed of certain non-core,non-Montney assets for cash proceeds of$80.0 million.ARC also executed various asset exchange transactions which consolidate its assets and enable greater operational efficiency.For informat

262、ion regarding ARCs planned capital expenditures for 2025,refer to the news releases dated November 6,2024 and February 6,2025,entitled ARC Resources Ltd.Reports Third Quarter 2024 Results and Announces 2025 Budget,First Production at Attachie,and 12 per cent Dividend Increase and ARC Resources Ltd.R

263、eports Year-end 2024 Results and Reserves,available on ARCs website at and on SEDAR+at www.sedarplus.ca.A breakdown of capital expenditures,acquisitions,and dispositions for the three months ended December 31,2024 and December 31,2023 is shown in Table 21:Table 21 Three Months Ended December 3120242

264、023Capital Expenditures($millions)E&E(1)PP&ETotalE&EPP&ETotal%ChangeGeological and geophysical 2.3 2.3 1.4 1.4 64 Drilling and completions 4.1 260.2 264.3 1.3 386.2 387.5 (32)Plant and facilities 7.1 49.9 57.0 3.2 129.7 132.9 (57)Maintenance and optimization 9.7 9.7 14.6 14.6 (34)Corporate 16.7 16.7

265、 8.1 8.1 106 Capital expenditures 11.2 338.8 350.0 4.5 540.0 544.5 (36)Acquisitions 16.4 16.4 8.0 14.0 22.0 (25)Dispositions (7.6)(7.6)(52.0)(14.3)(66.3)(89)Capital expenditures and net acquisitions and dispositions 11.2 347.6 358.8 (39.5)539.7 500.2 (28)(1)Exploration and evaluation(E&E).ARC RESOUR

266、CES LTD.|2024 ANNUAL REPORT|37Exhibit 18Capital Expenditures by ClassificationThree Months Ended December 31,20241%75%16%3%5%Geological and geophysicalDrilling and completionsPlant and facilitiesMaintenance and optimizationCorporateA breakdown of capital expenditures,acquisitions,and dispositions fo

267、r the years ended December 31,2024 and December 31,2023 is shown in Table 21a:Table 21aYear Ended December 3120242023Capital Expenditures($millions)E&EPP&ETotalE&EPP&ETotal%ChangeGeological and geophysical 0.1 11.0 11.1 8.3 8.3 34 Drilling and completions 11.6 1,493.3 1,504.9 4.2 1,548.4 1,552.6 (3)

268、Plant and facilities 19.5 203.5 223.0 7.6 220.2 227.8 (2)Maintenance and optimization 76.5 76.5 42.6 42.6 80 Corporate 30.0 30.0 18.5 18.5 62 Capital expenditures 31.2 1,814.3 1,845.5 11.8 1,838.0 1,849.8 Acquisitions 21.5 21.5 8.5 17.0 25.5 (16)Dispositions (87.6)(87.6)(52.0)(90.9)(142.9)(39)Capita

269、l expenditures and net acquisitions and dispositions 31.2 1,748.2 1,779.4 (31.7)1,764.1 1,732.4 3 ARC Resources Ltd.3138|2024 ANNUAL REPORT|ARC RESOURCES LTD.Exhibit 18aCapital Expenditures by ClassificationYear Ended December 31,20241%81%12%4%2%Geological and geophysicalDrilling and completionsPlan

270、t and facilitiesMaintenance and optimizationCorporateAsset Retirement ObligationARC maintains a planned and scheduled approach to its abandonment and reclamation activities.At December 31,2024,ARC recognized ARO of$431.4 million($451.3 million at December 31,2023),for the future abandonment and recl

271、amation of ARCs crude oil and natural gas assets,of which$17.0 million is classified as current and$414.4 million is classified as long-term($17.0 million and$434.3 million at December 31,2023,respectively).The estimated ARO includes assumptions in respect of actual future costs to abandon wells and

272、 decommission and reclaim assets,the time frame in which such costs will be incurred,and annual inflation factors.The future liability has been discounted at a liability-specific risk-free rate of 3.3 per cent(3.0 per cent at December 31,2023).Accretion charges of$3.6 million and$14.1 million for th

273、e three months and year ended December 31,2024($3.7 million and$13.2 million for the same periods in 2023),respectively,have been recognized in interest and financing in the statements of income to reflect the increase in ARO associated with the passage of time.Actual spending under ARCs program for

274、 the three months and year ended December 31,2024 was$1.8 million and$16.2 million($3.6 million and$17.5 million for the same periods in 2023),respectively.Exhibit 19$millionsChange in ARODecember 31,2023 to December 31,2024451.321.8(8.4)(31.2)(16.2)14.1431.4December 31,2023Development activitiesCha

275、nge in estimates(1)Change in discount rateSettlement of obligationsAccretionDecember 31,2024300400500(1)Relates to changes in cost estimates of future obligations and anticipated settlement dates of ARO.ARC RESOURCES LTD.|2024 ANNUAL REPORT|39Capitalization,Financial Resources and LiquidityCapital M

276、anagementARCs capital management objective is to fund dividend payments,lease payments,current period abandonment and reclamation expenditures,and capital expenditures necessary for the replacement of production declines using only funds from operations.Profitable growth activities will be financed

277、with a combination of funds from operations and other sources of capital.ARC believes that investing in development activities that prioritize profitability over production growth creates significant long-term shareholder value.Maintaining targeted debt levels,paying a sustainable dividend,and exerc

278、ising capital discipline to manage a moderate pace of development and control its corporate decline rate are the basis for ARCs current capital allocation framework.ARC takes a portfolio approach by periodically evaluating its capital allocation priorities,considering returns to shareholders through

279、 sustainable dividend increases and/or share repurchases,and long-term development investments.ARC uses free funds flow,defined as funds from operations less capital expenditures,as an indicator of the funds available for capital allocation.For the three months and year ended December 31,2024,free f

280、unds flow was$420.4 million and$627.0 million($154.7 million and$789.8 million for the three months and year ended December 31,2023),respectively.For the calculation of free funds flow,refer to the section entitled Non-GAAP and Other Financial Measures contained within this MD&A.ARC distributed esse

281、ntially all free funds flow in 2024 to shareholders through dividends and repurchase of shares.During the year ended December 31,2024,ARC distributed 99 per cent of free funds flow to shareholders.Currently,ARC believes that the optimal mechanism to return shareholder capital is through a combinatio

282、n of a sustainable base dividend that grows over time and continued share repurchases.ARC intends to continue to distribute essentially all of its free funds flow to shareholders on a full-year basis.During the year ended December 31,2024,ARC increased its dividend by 12 per cent from$0.17 per share

283、 per quarter to$0.19 per share per quarter,repurchased 8.5 million common shares under its normal course issuer bid(NCIB)and renewed its NCIB through to September 5,2025.Exhibit 20$millionsFree Funds Flow2020202120222023202403006009001,2001,5001,8002,1002,400ARC maintains financial flexibility throu

284、gh its strong balance sheet.ARC manages its capital structure for the long term,with the objective of having its net debt less than 1.5 times funds from operations.At December 31,2024,ARCs net debt was 0.5 times its funds from operations.40|2024 ANNUAL REPORT|ARC RESOURCES LTD.Exhibit 21$millionsrat

285、ioNet Debt to Funds from OperationsNet debtFunds from operationsNet debt to funds from operations(1)2020202120222023202401,0002,0003,0004,0000.00.51.01.5(1)Composed of net debt divided by funds from operations.Long-term DebtAt December 31,2024,ARC had total available credit capacity of$2.7 billion,o

286、f which$1.4 billion was outstanding under its credit facility and senior notes.At December 31,2024,ARCs long-term debt had a weighted average interest rate of 3.6 per cent.At December 31,2024,ARC has a$1.7 billion unsecured extendible revolving credit facility(the facility),with a maturity date of F

287、ebruary 2028.For more information,refer to Note 12 Long-term Debt in the financial statements.At December 31,2024,ARC was in compliance with the financial covenants related to its credit facility as follows:Table 22Covenant DescriptionPosition at December 31,2024Consolidated Debt not to exceed 60 pe

288、r cent of Total Capitalization 15%Consolidated Tangible Assets of the Restricted Group must exceed 80 per cent of Consolidated Tangible Assets 100%Lease ObligationsAt December 31,2024,ARC had lease obligations of$1.0 billion,of which$92.8 million is due within one year.ARCs lease obligations primari

289、ly relate to office space,equipment used in ARCs operations,and processing facilities.The terms of ARCs lease obligations range from one to 12 years.For further information,refer to Note 11 Lease Arrangements in the financial statements.Shareholders EquityDuring the year ended December 31,2024,ARC r

290、epurchased 8.5 million common shares under its NCIB at a weighted average price per share of$24.36 for a total of$207.1 million,inclusive of all costs.Shares were cancelled upon repurchase.At December 31,2024,ARC has recognized a liability of$15.1 million($5.6 million at December 31,2023)for share r

291、epurchases that may take place during its internal blackout period under an automatic share purchase plan agreement with an independent broker.The transaction has been recognized as a reduction to share capital of$5.6 million and a reduction to retained earnings of$9.5 million.At December 31,2024,th

292、ere were 589.6 million common shares outstanding and 1.1 million share options outstanding under ARCs share option plans.For more information,refer to the section entitled Share Option Plans contained within this MD&A.ARC RESOURCES LTD.|2024 ANNUAL REPORT|41At December 31,2024,ARC had 0.9 million re

293、stricted shares outstanding under its LTRSA Plan.For more information on the restricted shares outstanding and held in trust under ARCs LTRSA Plan,refer to the section entitled Long-term Restricted Share Award Plan contained within this MD&A.DividendsARCs business strategy is focused on value creati

294、on and long-term returns to shareholders,with the dividend being an important component.During the year ended December 31,2024,ARC increased its quarterly dividend by 12 per cent from$0.17 per share to$0.19 per share.In the fourth quarter of 2024,ARC declared dividends totaling$112.2 million($0.19 p

295、er share)compared to$101.7 million($0.17 per share)in the same period of 2023.ARC declared dividends of$416.2 million($0.70 per share)for the year ended December 31,2024 and$400.3 million($0.66 per share)for the year ended December 31,2023.ARCs dividend as a per cent of funds from operations(1)for b

296、oth the three months ended December 31,2023 and December 31,2024 was an average of 15 per cent.For the year ended December 31,2024,ARCs dividend as per cent of funds from operations increased from an average of 15 per cent for the year ended December 31,2023,to an average of 17 per cent for the year

297、 ended December 31,2024.The increase in dividend as a per cent of funds from operations for the year ended December 31,2024,as compared to the same period of the prior year,reflects the decrease in funds from operations and a higher dividend per share.(1)Refer to the section entitled Non-GAAP and Ot

298、her Financial Measures contained within this MD&A for an explanation of composition.Exhibit 22$/shareRatio(%)Dividend as a Per Cent of Funds from OperationsFunds from operations per shareDividend per shareDividend as a per cent of funds from operationsQ1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 202

299、4Q4 20240.000.400.801.201.600510152025The actual amount of future quarterly dividends is proposed by Management and is subject to the approval and discretion of the Board.The Board reviews future dividends in conjunction with their review of quarterly financial and operational results.Please refer t

300、o ARCs website at for details of the estimated quarterly dividend amounts and dividend dates for 2025.42|2024 ANNUAL REPORT|ARC RESOURCES LTD.Contractual Obligations and CommitmentsThe following table is a summary of ARCs contractual obligations and commitments as at December 31,2024:Table 23Payment

301、s Due by Period1 Year2-3 Years4-5 YearsBeyond 5YearsTotalDebt repayments 842.0 550.0 1,392.0 Interest payments(1)29.7 43.4 38.1 28.6 139.8 Purchase and service commitments(2)144.0 100.3 689.3 7,963.7 8,897.3 Transportation commitments 665.5 1,180.7 957.8 4,385.0 7,189.0 Total contractual obligations

302、 and commitments 839.2 2,166.4 1,685.2 12,927.3 17,618.1(1)Fixed interest payments on senior notes.(2)Includes variable operating costs associated with the Companys lease obligations.The increase in contractual obligations and commitments during the year ended December 31,2024,primarily relates to l

303、iquefaction and transportation amounts committed under the terms of the Agreements entered into with Cedar LNG.ARC enters into commitments for purchases of goods and services in the normal course of operations in advance of expenditures being made.At a given point in time,ARC has committed to a port

304、ion of its capital budget by means of giving the necessary authorizations to incur the expenditures in a future period.ARC is involved in litigation and claims arising in the normal course of operations.Such claims are not expected to have a material impact on ARCs results of operations or cash flow

305、s.Off-Balance Sheet FinancingARC does not have any guarantees or off-balance sheet arrangements that have been excluded from the balance sheets other than commitments disclosed in Note 21 Commitments and Contingencies of the financial statements.Related PartiesKey Management Personnel CompensationAR

306、Cs key management personnel consists of its officers and directors.Short-term benefits are composed of salaries and directors fees,annual bonuses,and other benefits.In addition,the Company provides share-based compensation to its key management personnel under the RSU,PSU,DSU,LTRSA,and Share Option

307、Plans.For the year ended December 31,2024,ARC recognized G&A of$73.3 million related to total key management personnel compensation($41.8 million for the year ended December 31,2023).Critical Accounting EstimatesARC continuously refines and documents its management and internal reporting systems to

308、ensure that accurate and timely internal and external information is gathered and disseminated.ARCs financial and operational results incorporate certain estimates including:estimated commodity sales from production at a specific reporting date for which actual revenues have not yet been received,in

309、cluding associated estimated credit losses;estimated royalty obligations,transportation,and operating expenses at a specific reporting date for which costs have been incurred but have not yet been settled;estimated capital expenditures on projects that are in progress;estimated DD&A charges that are

310、 based on estimates of reserves that ARC expects to recover in the future;estimated future recoverable value of PP&E,E&E,and goodwill and any associated impairment charges or reversals;ARC RESOURCES LTD.|2024 ANNUAL REPORT|43estimated fair values of financial instruments,including embedded derivativ

311、es,that are subject to fluctuation depending upon the underlying forward curves for commodity prices,foreign exchange rates and interest rates,as well as volatility curves,and the risk of non-performance;estimated value of ARO that is dependent upon estimates of future costs and timing of expenditur

312、es;estimated value of ROU assets and lease obligations that are dependent upon estimates of discount rates and timing of lease payments;estimated compensation expense under ARCs share-based compensation plans including the PSUs awarded under the PSU Plans that are dependent on the final number of PS

313、U awards that eventually vest based on a performance multiplier;andestimated fair values of assets acquired and liabilities assumed in a business combination.ARC has hired individuals and consultants who have the skills required to make such estimates and ensures that individuals or departments with

314、 the most knowledge of the activity are responsible for the estimates.Further,past estimates are reviewed and compared to actual results,and actual results are compared to budgets in order to make more informed decisions on future estimates.For further information on the determination of certain est

315、imates inherent in the financial statements,refer to Note 5 Management Judgments and Estimation Uncertainty in the financial statements.RISK FACTORSManagement is focused on long-term strategic planning and has identified the key risks,uncertainties,and opportunities associated with ARCs business tha

316、t can impact its financial results.These include,but are not limited to:Volatility of Commodity PricesThe prices of crude oil and liquids and natural gas are volatile,outside of ARCs control and affect ARCs financial condition,financial performance,cash flows,and future rate of growth.ARCs revenues,

317、profitability,cash flows,and future rate of growth are highly dependent on commodity prices.Commodity prices may fluctuate widely in response to relatively minor changes in the supply of and demand for crude oil and liquids and natural gas,market uncertainty,and a variety of additional factors that

318、are beyond ARCs control,such as:domestic and global supply of and demand for crude oil and liquids and natural gas,as impacted by economic factors that affect gross domestic product growth rates of countries around the world,including impacts from international trade,pandemics,and related concerns;m

319、arket expectations with respect to future supply of crude oil and liquids and natural gas demand and price changes;global crude oil and liquids and natural gas inventory levels;volatility and trading patterns in the commodity-futures markets;the proximity,capacity,cost,and availability of pipelines

320、and other transportation facilities;the capacity of refiners to utilize available supplies of crude oil and liquids;weather conditions affecting supply and demand;overall domestic and global political and economic conditions;actions of the Organization of Petroleum Exporting Countries,its members an

321、d other state-controlled crude oil companies relating to crude oil price and production controls;fluctuations in the value of the US dollar;the price and quantity of crude oil and liquids and LNG imports to and exports from the US and other countries;44|2024 ANNUAL REPORT|ARC RESOURCES LTD.the devel

322、opment of new hydrocarbon exploration,production,and transportation methods or technological advancements in existing methods,including hydraulic fracturing;capital investments by crude oil and natural gas companies relating to the exploration,development,and production of hydrocarbons;social attitu

323、des or policies affecting energy consumption and energy supply;domestic and foreign governmental regulations,including environmental regulations,climate change regulations and taxation;shareholder activism or activities by non-governmental organizations to limit certain sources of capital for the en

324、ergy sector or restrict the exploration,development,and production of crude oil and liquids and natural gas;and the effect of energy conservation efforts and the price,availability,and acceptance of alternative energies,including renewable energy.Commodity prices have historically been,and continue

325、to be,volatile.ARC expects this volatility to continue.ARC makes price assumptions that are used for planning purposes,and a significant portion of its cash outflows,including capital expenditures and transportation commitments,are largely fixed in nature.Accordingly,if commodity prices are below th

326、e expectations on which these commitments were based,ARCs financial results are likely to be adversely and disproportionately affected because these cash outflows are not variable in the short term and cannot be quickly reduced to respond to unanticipated decreases in commodity prices.ARCs risk mana

327、gement arrangements will not fully mitigate the effects of price volatility.Significant or extended price declines could also materially and adversely affect the amount of crude oil and liquids and natural gas that ARC can economically produce,require ARC to make significant downward adjustments to

328、its reserve estimates,or result in deferral or cancellation of ARCs growth projects.A reduction in production could also result in a shortfall in expected cash flows and require ARC to reduce capital spending or borrow funds or access capital markets to cover any such shortfall.Any of these factors

329、could negatively affect ARCs ability to replace its production and its future rate of growth.Adverse Economic ConditionsAdverse general economic,business,and industry conditions could have a material adverse effect on ARCs results of operations and cash flow.The demand for energy,including crude oil

330、 and liquids and natural gas,is generally linked to broad-based economic activities.If there was a slowdown in economic growth,an economic downturn or recession,or other adverse economic or political developments in the US,Europe,Middle East,or Asia,there could be a significant adverse effect on glo

331、bal financial markets and commodity prices.In addition,geopolitical instability and the escalation and expansion of conflict in the Middle East,Europe,and the South China Sea region,and the occurrence or threat of terrorist attacks in the US or other countries,could involve other nations,potentially

332、 increasing existing tensions between the US,China,and Russia,and may adversely affect the global economy,financial markets,and shipping and supply chains.Global or national health concerns,including the outbreak of pandemic or contagious diseases may adversely affect ARC by(i)reducing global econom

333、ic activity thereby resulting in lower demand for crude oil and liquids and natural gas,(ii)impairing its supply chain,for example,by limiting the manufacturing of materials or the supply of goods and services used in ARCs operations,and(iii)affecting the health of its workforce,rendering employees unable to work or travel.These and other factors disclosed elsewhere in this MD&A that generally aff