CALGARY, Alberta, Feb 6, 2026, 09:42 MST
- Q4 net income dropped to C$259.9 million, even as revenue climbed to C$1.65 billion
- ARC withdrew its 2026 production forecast for Attachie but maintained the overall corporate output target
- 2P reserves hit a record 2,277 million boe, with a before-tax 2P NPV standing at C$22.1 billion
ARC Resources withdrew its 2026 production forecast for the Attachie project following disappointing results from recent wells. The company also reported a decline in fourth-quarter profit despite higher revenue.
This move shines a new spotlight on Attachie, a condensate-heavy Montney asset that investors have eyed as a key growth driver for the Calgary-based producer.
It also arrives during earnings season, a key time for Canadian gas producers to prove their well results are consistent and decide how aggressively to push dividends and buybacks without overloading their balance sheets.
Net income dropped to C$259.9 million (C$0.45 a share) in the quarter ending Dec. 31, down from C$370.5 million a year earlier. Meanwhile, total revenue climbed to C$1.65 billion from C$1.42 billion. A C$72.5 million loss on risk management contracts — hedges meant to lock in prices — weighed on results.
Funds from operations, a key cash-flow metric for Canadian producers, climbed 13% to C$874 million. Free funds flow — which subtracts capital spending from funds from operations — hit C$415 million. ARC also reported returning C$257 million to shareholders during the quarter.
Output came in at an average of 408,382 barrels of oil equivalent per day during the quarter, including 118,898 barrels a day of liquids. For the full year, production averaged 374,336 boe/d, the company said, boosted by the Attachie project and a Kakwa acquisition finalized in July.
On Friday’s earnings call, CEO Terry Anderson said ARC plans to “take the time to ensure we get it right” at Attachie and remain “nimble” with its capital allocation. He told analysts the company might redirect some spending toward Kakwa as it assesses recent changes at Attachie pads. https://www.investing.com/news/transcripts/earnings-call-transcript-arc-resources-q4-2025-misses-eps-revenue-up-93CH-4491353
ARC maintained its 2026 corporate guidance at 405,000 to 420,000 boe/d, with capital expenditures pegged between C$1.8 billion and C$1.9 billion. Using forward prices as of Jan. 22, the company projected roughly C$1.2 billion in free funds flow for 2026, stating that nearly all of this will go toward dividends and share buybacks.
Year-end proved plus probable reserves (2P) hit a record 2,277 million boe, with ARC reporting it replaced 121% of the 2P volumes produced in 2025. The before-tax net present value (NPV) of those 2P reserves — a discounted forecast of future cash flows — stood at C$22.1 billion, based on a 10% discount rate. Meanwhile, the 2P reserve life index climbed to 15.1 years.
The downside is clear: gas and condensate prices can shift quickly, and Attachie requires more consistent well output to justify additional investment. ARC also pointed out that its 2026 production forecast assumes there won’t be any cuts due to low prices — a reference to last year’s reductions at Sunrise when AECO, Alberta’s gas benchmark, dropped.
MarketBeat reported ARC posted earnings of 32 cents per share on its U.S. over-the-counter listing, missing the 37-cent analyst forecast, with revenue hitting $1.65 billion. The stock slipped roughly 4% to $18.56. Meanwhile, shares listed in Toronto dropped 12.3% to C$22.28 by 11:42 a.m. ET Friday, per MarketScreener data.
Related articles: Energy Sector
