ARC Resources Ltd.

Good morning, ladies and gentlemen, and welcome to the ARC Resources first quarter 2025 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, May 2, 2025. I would now like to turn the conference over to Dale Lucco, Manager, Capital Markets. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us on our first 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, and Ryan Barrett, Senior Vice President, Marketing. Before I turn it over to Terry and Chris to take you through our first quarter results, I'll remind everyone that this conference call includes forward-looking statements and non-GAAP and other financial measures with the associated risks outlined in the earnings release and our MD&A. All dollar amounts discussed today are in Canadian dollars unless otherwise stated. Finally, the press release, financial statements, and MD&A are available on our website as well as CDAR. 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. I'm pleased to discuss AHRQ's first quarter results and provide an update on our outlook for 2025 and beyond. First quarter production averaged 372,000 BOE per day, which was in line with our Q1 guidance of 370,000 to 375,000 BOE per day. Production included approximately 95,000 barrels per day of condensate, which was a significant contributor to the $400 million of free cash flow we generated in the quarter. In addition, our transportation portfolio allowed us to send more than 50% of our natural gas to higher-priced markets in the U.S., resulting in an average realized natural gas price that was more than double the local ACO benchmark. Operationally, the asset base continues to deliver strong results. We invested $460 million, about a quarter of our 2025 budget, and focused our drilling and completion activities at Atachi, Capua, and Greater Dawson. This will contribute to strong condensate growth in the second half of the year and achieve annual production guidance of 380,000 to 395,000 BOE per day, which was unchanged in the quarters. In terms of the assets, I'll begin with Attachee. First quarter production averaged just over 31,000 BOE per day, which was in line with expectations. The production mix was approximately 60% liquids, including about 15,000 barrels per day of condensate. The reservoir deliverability is meeting our expectations, which is critical to achieve long-term returns and provide confidence as we advance Phase 2 of Attachee. As mentioned in the press release, the ramp up in production at Hitachi was delayed to address some early stage emulsion at the facility. We operated at a reduced facility capacity beginning in late March to optimize our chemical program there. So Q2 production is expected to average between 30 and 35,000 BOE per day. These types of events are not uncommon in new areas of this scale, and I'm pleased how our team was able to resolve them and limit the impact to operations. With that, we remain on track to grow production and average between 35,000 to 40,000 BOE per day at Hitachi in the second half of the year. At CAQA, we continue to build on operating momentum from last year. Production averaged 162,000 BOE per day in the quarter, which was slightly above our interim forecast. We have an active program upcoming that will support volume and free cash flow growth over the balance of the year. Our strategy at CAQA is to produce the asset at an average of 170,000 to 175,000 BOE per day on a full year basis and continue to look for efficiencies to grow margins and free cash flow. One method we are exploring at CAQA is the use of a dual FRAC system. This is expected to drive further efficiencies by reducing cycle time without compromising safety. Moving on to our Sunrise asset, in late March, with Station 2 pricing near zero, we shut in 75 million cubic feet per day of natural gas production. This eliminated our natural gas exposure at Station 2 and preserved resource for when prices are higher. This decision underscores our commitment to maintaining financial discipline and optimizing returns in response to market conditions. We continue to operate the asset with profitability in mind. In March, we also advanced our natural gas marketing strategy by announcing a long-term LNG sale and purchase agreement with Exxon. Commencing with the Cedar LNG project expected in late 2028, Exxon will purchase all of ARC's LNG offtake from the project, And in return, we'll receive international LNG pricing. With this contract and our previously announced Chenier LNG contracts, we will achieve our long-term market diversification strategy of linking approximately 25% of our future natural gas production to international pricing. Finally, I want to reaffirm that our long-term plan remains on track, aiming to triple free cash flow per share by 2028 from 2024 levels. Attachee is a key part of this strategy, and our observations from Phase 1 have reinforced our conviction on the next phase of the project. With that in mind, I want to reiterate that we remain flexible to adjust our course should economic conditions materially weaken. ARC will continue to operate under our guiding principles of profitability, capital discipline, and financial strength. Thank you, and I'll now turn it over to our CFO, Chris Dibby, to provide further insights into our financial performance.