ARC Resources Ltd.

Good morning. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Arc Resources second quarter 2023 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then number one on your telephone keypad. And if you would like to withdraw from the question queue, please press star then number two. Thank you. Mr. Lucco, you may begin your conference.

Thank you, operator. Good morning, everyone, and thank you for joining us for our second quarter earnings conference call. Joining me today are Terry Anderson, President and Chief Executive Officer, Chris Bibby, Chief Financial Officer, Armin Jahangiri, Chief Operating Officer, Laura Conrad, Chief Development Officer, and Ryan Barrett, Senior Vice President, Marketing. Before I turn it over to Terry and Krista to take you through our second quarter results, I'll remind everyone that this conference call includes forward-looking statements and non-GAAP and other financial measures. The press release, financial statements, and MD&A are available on our website as well as CDAR. Finally, following our prepared remarks, we'll open the line to questions. With that, I'll turn it over to our President and CEO, Terry Anderson. Terry, please go ahead.

Thanks, Dale, and good morning, everyone. Before I get into the quarter, it's I want to quickly summarize our long-term strategy that we laid out at our investor day in June. The main takeaways are, first, we'll continue to pursue a balanced approach to capital allocation to achieve the best overall return for our shareholders. Reinvesting about 50% of our cash flow into our assets, including Hitachi, will yield 5% annual production growth over the next five years in condensate-rich natural gas. Second, we'll dedicate free cash flow to shareholder returns through dividends and share repurchases. When you combine this with organic growth, we forecast free cash flow per share to triple by 2028. Third, the Montney is world-class and ARC is the largest Montney producer. We have more than 1 million acres of high-quality Montney lands to develop with the capability to grow to 500,000 BOE per day and remain flat for decades. Finally is the extension of our gas marketing strategy to include LNG. Our goal is to dedicate 25% of ARC's future natural gas production to international markets, which we believe is a key differentiator for ARC. To date, we've made excellent progress through our agreement with Chenier off the U.S. Gulf Coast and an MOU with Cedar LNG, and we continue to pursue other opportunities to achieve this goal. Now let's move on to the quarter. If I were to summarize, we executed two plans and overcame a challenging operating environment due to the Alberta wildfires. While we were fortunate that the wildfires did not impact any of our infrastructure, we experienced minor disruptions due to downtime on third-party pipelines. Our owned and operated infrastructure and dual connectivity played a key role in limiting this production impact to 4,000 DOE per day. I'm extremely proud of how our people responded and demonstrated the safety-first mentality that is so critical to our success. In addition, the team executed an efficient capital program that included several significant turnarounds at our CAQA field, all of which were completed both on time and within budget. Production averaged approximately 345,000 BOE per day in the quarter. This is up 13% year over year on a per share basis. Our annual production guidance is unchanged and we have strong operational momentum heading into the back half of the year where we are forecasting average production of approximately 360,000 BOE per day. Looking ahead, we're focused on the efficient execution of our base capital program and the advancement of Attachee Phase 1. Year-to-date, we invested roughly $25 million at Attachee on purchasing major equipment and construction activities. We are progressing as planned by preparing the sites and right-of-way for the plant and the gas sales installation. Construction will ramp up in the second half of the year with no change to the previously announced $740 million project costs. We also completed two additional projects I'd like to highlight. The first is the expansion at Sunrise, which adds an additional 80 million cubic feet a day of processing capacity, brings the total capacity at Sunrise to 360 million cubic feet a day. The project was completed within budget and will support volume growth in 2024 as planned. Sunrise is direct connected to Coastal Gas Link, which allows us to supply natural gas to Shell at the start-up of LNG Canada. This supports our strategy of delivering low-cost, low-emission natural gas to international markets for decades to come. Second, the electrification of our Dawson 3 and 4 facilities. With this project complete, all our gas plants in Northeast BC are fully electrified and powered by renewable hydroelectricity from the BC grid. This is a critical component of our emissions reduction strategy. In total, electrification of our facilities in northeast B.C. avoids 420,000 tons of CO2 equivalent in greenhouse gas emissions every year, the equivalent of taking more than 91,000 cars off the road. With that, I'll turn it over to Chris to go through our financial results for the quarter.