ARC Resources Ltd. Unveils 2025 Year-End Results and Reserves
ARC Resources Ltd. has announced significant achievements for the year ending December 31, 2025, including record production and financial results, alongside crucial developments in reserves. The company reported an ambitious financial outlook and strategic plans for continued growth in the upcoming years.
Record Fourth Quarter and Year-End 2025 Results
In the fourth quarter, ARC Resources achieved an average production of 408,382 barrels of oil equivalent (boe) per day. This production consisted of 58% natural gas and 42% crude oil and liquids, which included 118,898 barrels per day of crude oil, marking the highest output in the company’s history.
- Production Increase: Production per share increased by 10% compared to the fourth quarter of 2024.
- Financial Performance: The company generated funds from operations of $874 million, equivalent to $1.52 per share.
- Free Funds Flow: Recorded at $415 million, translating to $0.72 per share.
- Net Income: Totaled $260 million, or $0.45 per share.
2025 Annual Highlights
For the full year of 2025, ARC Resources recorded an impressive annual average production of 374,336 boe per day, up 10% per share from 2024. The key financial metrics for the year include:
- Funds from Operations: $3.2 billion ($5.48 per share).
- Free Funds Flow: $1.3 billion, allowing for significant shareholder returns.
- Debt Management: A decrease in net debt to $2.9 billion, representing 0.9 times funds from operations.
Impact of Key Transactions
Notably, ARC’s acquisition strategy played a crucial role in its growth. The company completed a $1.6 billion acquisition of condensate-rich assets in the Kakwa area from Strathcona Resources Ltd. in July 2025. This acquisition, including additional asset purchases, strengthened ARC’s resource base and contributed to the record production levels.
Reserves and Technical Results
ARC Resources also reported record reserves in 2025 with notable increases:
- Proved Developed Producing (PDP) Reserves: Increased by 15%.
- Total Proved Plus Probable (2P) Reserves: Increased by 9%.
- Reserve Replacement: For the 18th consecutive year, ARC replaced over 120% of its 2P reserves.
The before-tax net present value (NPV) for 2P reserves was calculated at $38.71 per share as of December 31, 2025.
Future Guidance and Strategy
Looking ahead, ARC plans to distribute nearly all of its free funds flow to shareholders in 2026 through dividends and share repurchases. Production guidance for 2026 is set between 405,000 and 420,000 boe per day, maintaining its focus on balance sheet strength and sustainable growth.
The company has also committed to capital expenditures estimated between $1.8 billion to $1.9 billion for the year, signaling continued investment in operational efficiency and growth.
ARC Resources remains dedicated to enhancing shareholder value through strategic investments and strong operational performance.
