ARC Resources Ltd. (TSX: ARX) published its financial and operational results for the fourth quarter and full year 2025, alongside its year-end reserves data. The company recorded significant achievements, including new production milestones and positive financial performance.
ARC Resources Ltd. 2025 Year-End Results and Reserves Data
Key Financial Highlights
- ARC’s fourth-quarter production averaged 408,382 barrels of oil equivalent per day (boe/d), a record high.
- Year-end production averaged 374,336 boe/d, marking a 10% increase from the previous year.
- Funds from operations for 2025 reached $3.2 billion, or $5.48 per share.
- Free funds flow for the year amounted to $1.3 billion, equivalent to $2.20 per share.
- Net income for Q4 2025 was $260 million, or $0.45 per share.
Production Insights
In the fourth quarter of 2025, crude oil and condensate production contributed to a new high, reaching 118,898 barrels per day. This increase was driven primarily by the company’s acquisition of Montney assets in the Kakwa area and improved performance from Attachie.
Natural gas production averaged 1,410 million cubic feet per day (MMcf/d) in Q4, gaining strength from restored production at the Sunrise site.
Year-End Reserves Update
ARC reported record reserves in 2025, with proved developed producing (PDP) and total proved plus probable (2P) reserves increasing by 15% and 9%, respectively. The company successfully replaced over 120% of its 2P reserves for the 18th consecutive year, and recognized positive technical revisions for the 20th year in a row.
The net present value (NPV) of ARC’s 2P reserves, discounted at 10%, stood at $38.71 per share by year-end 2025, reflecting a solid basis for future prospects.
Shareholder Returns and Capital Management
In 2025, ARC distributed 75% of its free funds flow, totaling $966 million, to shareholders through dividends and share repurchases. The company increased its quarterly dividend by 11%, bringing it to $0.21 per share.
ARC’s proactive management strategies allowed for a net debt reduction of $191 million, resulting in a year-end net debt of $2.9 billion, representing 0.9 times its funds from operations.
Looking Ahead
ARC remains committed to its long-term strategy of delivering sustainable growth in free funds flow per share. The company anticipates 2026 annual production between 405,000 to 420,000 boe/d, alongside planned capital expenditures of $1.8 to $1.9 billion.
As it moves forward, ARC intends to utilize a significant portion of its free funds flow for shareholder returns, underscoring its dedication to providing long-term value.
