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( ARC ARC RESOURCES LTD . REPORTS RECORD THIRD QUARTER 2021 RESULTS , INCREASES DIVIDEND , AND ANNOUNCES 2022 BUDGET NEWS RELEASE Calgary , November 4 , 2021 ( ARX - TSX ) ARC Resources Ltd. ( " ARC " or the " Company " ) today reported its third quarter 2021 financial and operational results and announced its 2022 budget . HIGHLIGHTS Q3 2021 Results ARC delivered record quarterly production and free funds flow ( ¹ ) per share , exceeding consensus expectations ( 2 ) . Average production of 353,657 boe ( 3 ) ( 4 ) per day generated funds from operations ( 5 ) of $ 765 million ( $ 1.06 per share ) and free funds flow of $ 497 million ( $ 0.69 per share ) . RESOURCES LTD . 2022 Capital Budget ARC's board of directors ( the " Board " ) has approved a preliminary 2022 capital budget of $ 1.2 to $ 1.3 billion that is expected to deliver average production in the range of 335,000 to 350,000 boe per day . Free funds flow was used to reduce net debt excluding lease obligations ( 5 ) by $ 158 million and to return $ 172 million of capital to shareholders through quarterly dividends of $ 47 million and share repurchases of $ 125 million . Free Funds Flow Allocation - ARC plans to return 50 to 80 per cent of free funds flow to shareholders primarily through : Sustainable dividend growth as the primary long - term mechanism . Share repurchases when Management's view of the intrinsic value of the business exceeds ARC's share price under moderate commodity price scenarios . ARC plans to allocate the balance of free funds flow to debt reduction . ● Notes : To date , ARC has repurchased approximately 20 million common shares for total consideration of $ 210 million , representing 2.7 per cent of common shares outstanding . ( 4 ) Dividend Increase The Board has approved a 52 per cent increase to ARC's quarterly dividend , from $ 0.066 per share to $ 0.10 per share , beginning with its dividend that is expected to be paid on January 17 , 2022 to shareholders of record on December 31 , 2021 . ( 5 ) Approximately $ 1.1 billion is required to sustain production at 335,000 to 350,000 boe per day , with the balance planned for investing in an expansion at Sunrise , long - lead investments for Attachie West Phase I , and progressing several emissions - reduction initiatives . Long - term Gas Supply Agreement ARC has entered into a long - term gas supply agreement to deliver approximately 150 MMcf per day of natural gas from ARC's Sunrise facility to an LNG Canada participant . The agreement will commence with the start - up of LNG Canada . ARC now expects to exceed the $ 160 million of synergies originally identified through the business combination ( the " Business Combination " ) with Seven Generations Energy Ltd. ( " Seven Generations " ) due to greater - than - expected capital synergies . The integration is effectively complete and ARC expects to capture all of the identified synergies by year - end . ARC's unaudited condensed interim consolidated financial statements and notes ( the " financial statements " ) and Management's Discussion and Analysis ( " MD & A " ) as at and for the three and nine months ended September 30 , 2021 , are available on ARC's website at www.arcresources.com and under ARC's SEDAR profile at www.sedar.com . The dividend increase reflects ARC's conviction in its business , increased profitability , and is sustainable in a low commodity price environment . ( 1 ) Non - GAAP measure that does not have any standardized meaning under International Financial Reporting Standards ( IFRS " ) and therefore may not be comparable to similar measures presented by other entities . Refer to the section entitled " Non - GAAP Measures in ARC's MD & A for the three and nine months ended September 30 , 2021 , available on ARC's website at www.arcresources.com and under ARC's SEDAR profile at www.sedar.com . ( 2 ) Source : Refinitiv Eikon ( October 27 , 2021 ) , ( 3 ) ARC has adopted the standard six thousand cubic feet ( " Mcf " ) to one barrel ( " bbl " ) of crude oil ratio when converting natural gas to barrels of oil equivalent ( " boe " ) . Boe may be misleading , particularly if used in isolation . Aboe conversion ratio of 6 Mcf : 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead . Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6 : 1 conversion ratio , utilizing the 6 : 1 conversion ratio may be misleading as an indication of value . Throughout this news release , crude oil ( " crude oil " ) refers to light , medium , and heavy crude oil product types as defined by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ( " NI 51-101 " ) . Condensate is a natural gas liquid as defined by NI 51-101 . Throughout this news release , natural gas liquids ( " NGLs " ) comprise all natural gas liquids as defined by NI 51-101 other than condensate , which is disclosed separately . Throughout this news release , crude oil and liquids ( " crude oil and liquids " ) refers to crude , condensate , and NGLs . Refer to Note 15 " Capital Management " in ARC's financial statements and to the sections entitled " Funds from Operations " and " Capitalization , Financial Resources and Liquidity in ARC's MD & A as at and for the three and nine months ended September 30 , 2021 , available on ARC's website t www.arcresources.com and under ARC'S SEDAR profile www.sedar.com .