Canada’s ARC Resources reports Q1 profit
In its last quarterly report prior to the April 6 close of its merger with Seven Generations Energy, ARC Resources reported Q1 2021 net income of C$178mn (US$145.2mn) on May 6, against a C$558.mn loss in the same period a year ago.
Funds from operations rose to C$273.9mn from $160.8mn, reflecting strong average realised commodity prices and ARC’s “proactive” market diversification activities. During the quarter, ARC’s average realised natural gas price was C$4.60/’000 ft3, a 57% premium to the average AECO monthly index price.
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On a pro forma basis, the combined ARC/Seven Generations entity had funds from operations in Q1 of C$574.5mn.
Free funds flow of C$148.2mn was allocated to dividend payments of C$21.3mn and reducing net debt by C$125.5mn. Pro forma free cash flow was C$300.5mn.
Production averaged a record 170,430 barrels of oil equivalent (boe)/day in the first quarter, up from 151,783 boe/day in Q1 2020. Natural gas production increased to 794.1mn ft3/day from 692.2mn ft3/day, while liquids production rose to 38,079 b/day from 36,411 b/day.
Combined ARC/Seven Generations production on a pro forma basis was 351,204 boe/day, comprised of 60% natural gas and 40% crude oil, condensate and natural gas liquids.