Annual Report - 2001 - ARC Resources Ltd.
Annual Report - 2001 - ARC Resources Ltd.
Annual Report - 2001 - ARC Resources Ltd.
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MANAGEMENT’S DISCUSSION AND ANALYSIS<br />
The following discussion and analysis of financial results should be read in conjunction with the<br />
audited consolidated financial statements for the year end December 31, <strong>2001</strong> and is based on<br />
information available to February 7, 2002.<br />
TABLE OF CONTENTS<br />
P46<br />
P48<br />
P48<br />
P49<br />
P50<br />
P50<br />
P51<br />
P51<br />
P51<br />
P52<br />
P52<br />
OBJECTIVES<br />
PRODUCTION<br />
MARKETING AND PRICES<br />
HEDGING<br />
REVENUE<br />
NETBACKS<br />
RECYCLE RATIO<br />
GENERAL AND<br />
ADMINISTRATIVE EXPENSES<br />
MANAGEMENT FEES<br />
INTEREST EXPENSE<br />
TAXES<br />
P52<br />
P53<br />
P53<br />
P54<br />
P54<br />
P56<br />
P57<br />
P58<br />
P59<br />
DEPLETION, DEPRECIATION AND<br />
FUTURE SITE RECLAMATION EXPENSES<br />
CASH FLOW AND EARNINGS<br />
CAPITAL EXPENDITURES<br />
ABANDONMENTS<br />
CAPITALIZATION AND FINANCIAL<br />
RESOURCES<br />
UNITHOLDERS’ EQUITY<br />
CASH DISTRIBUTIONS<br />
ASSESSMENT OF BUSINESS RISKS<br />
OUTLOOK<br />
GLOSSARY OF ABBREVIATIONS<br />
API<br />
American Petroleum Institute<br />
bbls<br />
barrels<br />
bbls/d<br />
barrels per day<br />
bcf<br />
billion cubic feet<br />
boe*<br />
barrels of oil equivalent<br />
boe/d*<br />
barrels of oil equivalent per day<br />
Capex<br />
capital expenditures<br />
FD&A costs finding, development and<br />
acquisition costs<br />
GAAP<br />
generally accepted accounting principles<br />
G&A<br />
general and administrative<br />
GJ<br />
gigajoule<br />
mbbls<br />
thousand barrels<br />
mboe*<br />
thousand barrels of oil equivalent<br />
mcf<br />
thousand cubic feet<br />
mcf/d<br />
thousand cubic feet per day<br />
mmbbls<br />
million barrels<br />
mmboe*<br />
million barrels of oil equivalent<br />
mmbtu<br />
million British Thermal Units<br />
mmcf<br />
million cubic feet<br />
mmcf/d<br />
million cubic feet per day<br />
NAV<br />
net asset value<br />
NGL<br />
natural gas liquids<br />
NYMEX<br />
New York Mercantile Exchange<br />
RLI<br />
reserve life index<br />
WTI<br />
West Texas Intermediate<br />
*6 mcf of gas = 1 barrel of oil<br />
FORWARD-LOOKING STATEMENTS<br />
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and<br />
uncertainties, certain of which are beyond <strong>ARC</strong>’s control, including: the impact of general economic conditions in Canada and<br />
the United States, industry conditions, changes in laws and regulations including the adoption of new environmental laws and<br />
regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified<br />
personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and<br />
obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas<br />
operations, therefore <strong>ARC</strong>’s actual results, performance or achievement could differ materially from those expressed in, or<br />
implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated<br />
by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of<br />
proceeds, that <strong>ARC</strong> will derive therefrom.
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