Annual Report - 2001 - ARC Resources Ltd.

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MESSAGE TO UNITHOLDERS
MESSAGE TO UNITHOLDERS
ONCE AGAIN, WE HAVE
excellent
RESULTS
FOR 2001, OUR SIXTH YEAR OF OPERATION, PARTICULARLY IN
DELIVERING
superior returns TO OUR UNITHOLDERS.
Total cash distributions increased 81 per cent to $234 million. On a per unit
basis, cash distributions increased 15 per cent to $2.31, the highest in our history.
Cumulative distributions to December 31, 2001 totalled $9.08, which represents 91 per
cent of our initial public offering price of $10.00 per unit.
Behind these superior returns were activities to position ARC for further strong
performance. Through the Startech acquisition in January and a Trust unit offering in
November, we increased the units outstanding by about 50 per cent to 111.7 million.
Funds from the November equity offering were used to reduce debt and to establish a
source of capital for future development expenditures. The benefits of the Startech
acquisition are evident in the Trust’s significant operational growth. Overall production
increased 58 per cent during the year and total oil equivalent reserves were up 37 per
cent. There is more to come. We believe the assets acquired will provide significant
additional reserve additions in 2002 and beyond.
OPPORTUNITIES IN THE NEW INDUSTRY ENVIRONMENT
The past year saw many changes within the oil and gas industry. The
beginning of the year saw high commodity prices and aggressive spending on mergers
and acquisitions by the energy sector followed by a transition to lower commodity prices
and a reduction in capital expenditures. As a result, a number of interesting events and
trends have emerged that will affect the industry going forward.
ARC ENERGY TRUST AR 2001