ARC Resources, an esteemed Canadian energy company, is anticipating a substantial boost in production, equivalent to up to 50,000 barrels of oil per day, by 2025. With a positive outlook for the coming years, ARC Resources aims to enhance their presence in the energy sector.
Production Forecast for 2025
By the end of 2025, ARC Resources has set its sights on achieving a remarkable total daily production of 375,000 to 400,000 boe (barrels of oil equivalent). A significant portion of this production, comprising 60%, will be natural gas, while crude oil and liquids will account for the remaining 40%.
Steady Growth in Production
ARC Resources is committed to maintaining a steady growth trajectory. In 2024, they project a total production ranging from 350,000 to 360,000 boe per day. The composition of this production will be predominantly natural gas, constituting approximately 63%, with crude oil and liquids making up the remaining 37%.
Likewise, in 2023, ARC Resources anticipates a total production of 350,000 to 355,000 boe per day. Within this production, natural gas will account for around 62%, while crude oil and liquids will contribute approximately 38%.
Insight into Production Guidance for 2024
When discussing their production guidance for 2024, ARC Resources emphasizes that it is contingent on various factors such as commodity price scenarios and economic conditions. As such, certain estimates within their guidance may fluctuate due to changes in commodity prices and regulations.
For crude oil and condensate, ARC Resources expects a daily production range of 87,000 to 91,500 barrels. In terms of natural gas, the projected production rate is estimated to be between 1,325 and 1,340 million cubic feet per day (MMcf/day). Finally, NGLs (Natural Gas Liquids) are anticipated to contribute a daily production range of 42,000 to 45,000 barrels.
Impact of Ethane Sales on 2024 Production
ARC Resources has taken into account the potential expiration of an ethane sales contract in the second quarter of 2024. As a result of this contract's expiry, there may be a reduction of approximately 5,000 barrels per day in reported NGL production on an annualized basis for that year. However, ARC Resources plans to compensate for this impact by re-injecting ethane into their natural gas stream. This strategic move is expected to lead to an increase in revenue from the sales of higher heat content natural gas, effectively offsetting any negative impact on funds from operations.
With a clear vision and strategic planning, ARC Resources is well-positioned for success in the coming years. For more information about their operations and advancements, please visit ARC Resources.