Annual Report - 2001 - ARC Resources Ltd.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. PROPERTY, PLANT AND EQUIPMENT
2001 2000
Property, plant and equipment, at cost $ 1,650,720 $ 784,393
Accumulated depletion, depreciation and amortization (339,414) (183,580)
Property, plant and equipment, net $ 1,311,306 $ 600,813
The calculation of 2001 depletion, depreciation and amortization included an estimated $166.5 million ($140.8
million in 2000) for future development costs associated with proved undeveloped reserves and excluded $12.0
million ($12.0 million in 2000) for future net realizable value of production equipment and facilities and $22.3 million
($5.7 million in 2000) for unproved properties.
6. LONG-TERM DEBT
2001 2000
Revolving credit facilities $ 238,748 $ 62,645
Senior Secured Notes (US$35 million) 55,741 52,423
Total long-term debt $ 294,489 $ 115,068
The Trust has four revolving credit facilities to a combined maximum of $350 million and US$35 million of Senior
Secured Notes (the “Notes”).
The revolving credit facilities each have a 364 day extendable revolving period and a two year term. Borrowings
under the facilities bear interest at bank prime (4.0 per cent at December 31, 2001) or, at the Trust’s option,
bankers’ acceptance plus a stamping fee. The lenders review the credit facilities by April 30 each year and
determine whether they will extend the revolving periods for another year. In the event that the revolving periods
are not extended, the Trust will finance the required quarterly installments using existing long-term facilities.
Collateral for the loans is in the form of floating charges on all lands and assignments and negative pledges on
specific petroleum and natural gas properties.
The Notes were issued during 2000 pursuant to an Uncommitted Master Shelf Agreement. The Notes bear interest
at 8.05 per cent and require equal principal payments of US$7 million over a five year period commencing in 2004.
Security for the Notes is in the form of floating charges on all lands and assignments. The Uncommitted Master
Shelf Agreement allows for the issuance of an additional US$65 million of Notes at rates and maturity dates to be
agreed upon at the date of issuance.
The Trust has not hedged its foreign exchange exposure on the Notes. A foreign exchange translation loss of $2.1
million was deferred at December 31, 2001 (gain of $1.1 million in 2000), and is being recognized over the term
of the Notes.
The payment of principal and interest are allowable deductions in the calculation of cash available for distribution
to unitholders. Should the properties securing this debt generate insufficient revenue to repay the outstanding
balances, the unitholders have no direct liability.
Interest paid during the year did not differ significantly from interest expense.
ARC ENERGY TRUST AR 2001