A History of Proven Performance
Formed in 1996, ARC's original vision was to become the premier “blue chip” conventional oil and gas company in Canada as measured by quality of assets, management expertise and long-term investor returns. Through its 20 year history, ARC has realized this vision and has consistently delivered exceptional value to its shareholders.
Follow the timeline marking defining moments in ARC’s history.
ARC Energy Trust is formed with the acquisition of 21 properties from Mobil Oil Canada. An initial IPO of 18 million units priced at $10 per share raises $180 million. ARC begins trading on the TSX July 11, under the symbol AET.UN.
ARC completes its first full year as a trust and closes seven transactions totaling $94 million of net acquisitions. Year-end reserves and total production increase by 40 percent.
With oil prices averaging just $14.40 U.S per barrel, ARC weathers the storm and maintains distributions at $0.10 per unit per month.
ARC has a year of growth and success. Market capitalization increases 200 per cent to $489 million. Units outstanding rise 109 per cent to 53.6 million. ARC acquires Starcor Energy Royalty Fund and Orion Energy Trust in March, resulting in an increase in production from 10,225 boe per day to 17,741 boe per day. All of the growth coupled with rising oil prices resulted in a 42 percent increase in the unit price.
ARC’s consistent growth and outstanding results place it as one of Canada’s largest oil and gas royalty trusts. In addition, ARC acquires strategic producing assets in Ante Creek.
ARC completes the acquisition of Startech Energy Inc., boosting production by approximately 16,000 boe/day and adding 30 new employees. ARC reaches the
$1 billion market capitalization milestone – becoming the third trust in the energy sector
to do so.
ARC becomes the first conventional oil and gas trust to eliminate an external management contract and all related future fees. John Dielwart becomes the first executive of a trust to be appointed to the role of Chairman of the Canadian Association of Petroleum Producers (CAPP).
ARC completes the largest acquisition in its history, acquiring Star Oil and Gas Ltd., for $710 million. As a result of the acquisition production increases 16,000 boe per day to approximately 58,000 boe per day. The key asset in the Star acquisition was the Dawson gas field.
ARC focuses on the development of its asset base with a then record capital expenditure of $194 million, and maintains production at approximately 57,000 boe per day.
ARC announces a $462 million strategic acquisition of properties in the Pembina and Redwater fields. ARC pioneers the use of an innovative completion technology for horizontal wells that proves to be a key technology for unlocking value from tight gas reservoirs, such as the Dawson field.
ARC celebrates its 10 year anniversary in a year that saw record highs in production, cash flow and record total earnings. Cumulative distributions increase to over $2 billion. The Canadian Federal government announces a new tax on trusts, with an implementation date of January 1, 2011.
ARC significantly expands its land holdings in the greater Dawson area to approximately 90,000 net acres and drills the Sunrise discovery well - setting the stage for future growth in the area.
ARC completes the CO2 enhanced oil recovery pilot facilities at Redwater and successful injection begins. An independent evaluation of the lands in the greater Dawson area identifies over 8 Tcf of original gas in place. Plans are announced to more than triple production at the Dawson gas field with the construction of two 60 mmcf per day gas plants. The first plant is set to come on-stream in 2010 and the second in 2011. Total Cumulative distributions paid to investors surpass $3 billion.
ARC successfully applies horizontal completion techniques, already in use at Dawson, to the Ante Creek Montney field in northern Alberta. Building on early indications of success, ARC completes a $180 million property acquisition to expand its holdings in the Ante Creek area. The acquisition expands ARC’s Ante Creek holdings by 70 per cent, adding 2,000 boe per day of production.
ARC achieves a 16 per cent year- over-year growth in production, accompanied by an increase in revenues, cash flow and net income. The first phase of the Dawson gas plant comes on-stream in May. ARC completes the acquisition of Storm Exploration Inc., adding the Parkland Montney field.
ARC completes its conversion from a royalty trust to a corporation in adherence to tax legislation effective on January 1, 2011. Although the structure has changed, ARC’s business strategy has not. In July, ARC celebrates its 15 year anniversary. Operational successes include the completion of the second phase of the Dawson gas plant, and record production levels.
ARC successfully completes construction on the 30 mmcf per day gas plant at Ante Creek - the next step in ARC’s development of organic production growth in the area. Record production levels of 93,546 boe per day were achieved in 2012 with crude oil and liquids production up 15 per cent relative to 2011. Founder and long-time Chief Executive Officer, John Dielwart, announces his retirement from ARC with Myron Stadnyk appointed as President and Chief Executive Officer effective January 1, 2013.
ARC executes a record capital program of $860 million, setting the stage for a significant increase in production in 2014. The development of ARC's Montney assets continue with the construction and commissioning of the Parkland Gas Plant. ARC reaches the milestone of 100,000 boe per day in the fourth quarter of 2013.
ARC achieves record production exceeding 110,000 boe/day. Investment in strategic infrastructure remains a core part of ARC’s business strategy as construction begins on a new 60 mmcf/day gas plant in Sunrise. ARC surpasses the $5 billion mark of dividends paid to shareholders since inception.
ARC successfully completes construction of the Sunrise gas plant ahead of schedule and under budget. Despite a challenging year for the industry, ARC continues to manage the business for the long term. Hal Kvisle announced as new Board Chair following Mac Van Wielingen’s retirement.
ARC safely operates its 2016 capital program with no lost-time incidents for employees and contractors. Transformation continues towards a more focused asset base with the sale of Saskatchewan assets. ARC exited the year with a strong balance sheet poised for success despite challenging industry conditions.
ARC delivered record production of over 120,000 boe per day, achieved our largest development reserves additions in corporate history, and grew cash flow per share by 15 per cent relative to 2016. We safely completed the construction of a gas processing and liquids-handling facility at Dawson and advanced our understanding of the liquids-rich Lower Montney.