![ARC Resources Adds Ex-Chevron Gas Chief to Board, Tallies Divestments](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/02/lng-canadas-arc-signs-ex-chevron-global-gas-chief-board.jpg?itok=JrdyUisk)
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Western Canadian operator ARC Resources has signed former Chevron Corp. gas chief Hugh Connett to its board as it aims to grow its exposure to higher-priced gas markets overseas.
Connett was most recently president, Chevron Global Gas, a position which included roles in power, pipelines and LNG.
ARC signed a 15-year, 140 MMcf/d supply agreement with Cheniere Energy in November to receive the Dutch TTF price for the gas. The TTF price for LNG delivery next month was US$8.79/Mcf on Feb. 9; for March 2025 delivery, US$10.32.
ARC’s gas production in the fourth quarter averaged 1.38 Bcf/d, it reported Feb. 8, from its Montney Shale operations.
Sales to Cheniere are expected to begin in 2029 to the LNG exporter’s Sabine Pass Liquefaction Stage V expansion in southwestern Louisiana.
ARC is looking for more LNG deals, aiming to sign up to 25% of its future gas output “to international markets with revenue linked to international or LNG pricing,” it reported.
ARC’s average realized sales price for its natural gas was CA$3.33 per Mcf in the fourth quarter. For 2023, it received an average of CA$3.77, compared with a 2022 average of CA$8.15.
Of ARC’s fourth-quarter production, 135,279 bbl/d was oil and NGL (63% oil). Overall output of all three streams was 63% natgas.
The total 365,248 boe/d was ARC’s highest output in its 28-year history, it reported.
Chevron recently put its Duvernay Shale assets on the market in western Canada, while projections are that private equity investors may look to the Western Canadian Sedimentary Basin for new growth opportunities.
ARC sold CA$44 million (US$32.6 million) of assets in the fourth quarter, it reported, bringing its 2023 total to CA$73.8 million (US$54.8 million), as it high-graded its portfolio. Proceeds from the fourth-quarter divestments were used in stock buybacks.
Including oil and NGL, its fourth-quarter average realized sales price was CA$38.69 per boe/d, compared with CA$61.17 in fourth-quarter 2022.
ARC’s netback per boe/d averaged CA$24.83, down from CA$40.92 in fourth-quarter 2022, deducting for royalties and operating and transportation expenses.
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