ARC Resources Reports Q2 Net Income of $396 Million, Raises 2025 Guidance

ARC Resources reported Q2 net income of $396 million, up from $239 million last year. The company raised its 2025 capital spending guidance to $1.85-$1.95 billion and increased its full-year production forecast to 385,000-395,000 boe/day. However, curtailments and slower-than-expected ramp-up at some assets reduced overall guidance. Operating costs per boe rose to $5.00-$5.50 due to higher water-handling costs and curtailed volumes.

Calgary, AB, July 2, 2025 /CNW/ - ARC Resources Ltd. (TSX: ARX) today reported its second quarter 2025 financial and operational results, providing revised 2025 guidance. The company reported net income of $396 million, a 69% increase compared to the same period last year [1]. Average daily production reached 357,228 boe, an 8% year-over-year increase, with natural gas accounting for 61% of production and crude oil and liquids making up 39% [1].

ARC generated funds from operations of $682 million and recognized cash flow from operating activities of $699 million, with free funds flow of $186 million and capital expenditures totaling $496 million [1]. The company distributed $188 million in dividends to shareholders, representing approximately 100% of free funds flow [1]. ARC's net income per share was $0.68, up from $0.40 in the same period last year [1].

The company's 2025 capital expenditure guidance was raised to $1.85-$1.95 billion, reflecting investments into the acquired Kakwa Assets and additional capital at Attachie [1]. ARC expects to generate average production of 385,000-395,000 boe per day in 2025, with production during the second half of the year expected to average greater than 410,000 boe per day [1]. Operating costs per boe rose to $5.00-$5.50 due to higher water-handling costs and curtailed volumes [1].

On July 2, 2025, ARC completed the acquisition of the condensate-rich Montney assets in the Kakwa region in Alberta from Strathcona Resources Ltd. in an all-cash transaction valued at approximately $1.6 billion [1]. ARC also executed an agreement for the earning and development of up to 36 new contiguous sections in the Montney with the Tsaa Dunne Za Energy Limited Partnership, increasing ARC's Attachie position by greater than ten percent [1].

References:
[1] https://www.arcresources.com/news-releases/arc-resources-ltd-reports-second-quarter-2025-results-provides-2025-revised-guidance-and-announces-new-attachie-land-acquisition/