CALGARY, Jan. 7, 2015 /CNW/ - (ARX -
TSX) ARC Resources Ltd. ("ARC") announced today that it
has reduced its 2015 capital budget to $750
million from the previously announced $875 million capital budget, due to the continued
deterioration in commodity prices. The 2015 capital program remains
strategically consistent with our long-term plan and is focused on
creating value by directing capital to a mix of crude oil,
liquids-rich gas and natural gas opportunities that continue to
provide profitable returns at low commodity prices. ARC's
2015 capital budget includes investment in strategic infrastructure
at Sunrise and front-end engineering and government applications
for the Dawson liquids-rich gas
processing facility, which will set the stage for future growth in
key areas in the Montney region.
Capital will also be directed to advancing the lower Montney development at Dawson and Pouce
Coupe as well as the construction of a 5,000 barrel per day
oil battery at Tower. Despite the reduction in capital, ARC expects
average 2015 production volumes to continue to be in the range of
120,000 to 125,000 boe per day.
Forward-looking Information and Statements
This news release contains certain forward-looking information
and statements within the meaning of applicable securities
laws. The use of any of the words "expect", "anticipate",
"continue", "estimate", "objective", "ongoing", "may", "will",
"project", "should", "believe", "plans", "intends", "strategy" and
similar expressions are intended to identify forward-looking
information or statements. In particular, but without
limiting the foregoing, this news release contains forward-looking
information and statements pertaining to guidance as to ARC's
capital program for 2015, and ARC's expected 2015 oil and gas
production volumes.
The forward-looking information and statements contained in this
news release reflect material factors and expectations and
assumptions of ARC including, without limitation: the timing of
obtaining regulatory approvals, that ARC will continue to conduct
its operations in a manner consistent with past operations; the
general continuance of current industry conditions; the continuance
of existing (and in certain circumstances, the implementation of
proposed) tax, royalty and regulatory regimes; the accuracy of the
estimates of ARC's reserves and resource volumes; certain commodity
price and other cost assumptions; and the continued availability of
adequate debt and equity financing and funds from operations to
fund its planned expenditures. ARC believes the material
factors, expectations and assumptions reflected in the
forward-looking information and statements are reasonable but no
assurance can be given that these factors, expectations and
assumptions will prove to be correct.
The forward-looking information and statements included in this
news release are not guarantees of future performance and should
not be unduly relied upon. Such information and statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking information or statements
including, without limitation: that the offering and the note
issuance will not be completed within the anticipated times or at
all; changes in commodity prices; changes in the demand for or
supply of ARC's products; unanticipated operating results or
production declines; changes in tax or environmental laws, royalty
rates or other regulatory matters; changes in development plans of
ARC or by third party operators of ARC's properties, increased debt
levels or debt service requirements; inaccurate estimation of ARC's
oil and gas reserve and resource volumes; limited, unfavorable or a
lack of access to capital markets; increased costs; a lack of
adequate insurance coverage; the impact of competitors; and certain
other risks detailed from time to time in ARC's public disclosure
documents (including, without limitation, those risks identified in
this news release and in ARC's Annual Information Form).
The forward-looking information and statements contained in this
news release speak only as of the date of this news release, and
none of ARC or its subsidiaries assumes any obligation to publicly
update or revise them to reflect new events or circumstances,
except as may be required pursuant to applicable laws.
The ARC common shares offered under this offering have not and
will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold in the United States or to any U.S. person except
in certain transactions exempt from the registration requirements
of the U.S. Securities Act and applicable states securities
laws. This news release shall not constitute an offer to sell
or the solicitation of any offer to buy nor shall there be any sale
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
ARC Resources Ltd. ("ARC") is one of Canada's largest conventional oil and gas
companies with an enterprise value of approximately $8.5 billion. ARC's common shares trade on
the TSX under the symbol ARX.
ARC has adopted the standard of 6 Mcf:1 barrel of oil equivalent
("boe") when converting natural gas to boes. Boes may be
misleading, particularly if used in isolation. A boe
conversion ratio of 6 Mcf per barrel is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the
wellhead. Given that the value ratio based on the current
price of crude oil as compared to natural gas is significantly
different than the energy equivalency of the 6:1 conversion ratio,
utilizing the 6:1 conversion ratio may be misleading as an
indication of value.
ARC RESOURCES LTD.
Myron M. Stadnyk
President and Chief Executive Officer
SOURCE ARC Resources Ltd.
