Mr. Terry Anderson reports

ARC RESOURCES LTD. ANNOUNCES LONG-TERM AGREEMENT WITH CEDAR LNG AND HEADS OF AGREEMENT FOR LNG OFFTAKE

ARC Resources Ltd. has entered into a long-term liquefaction tolling services agreement and other ancillary agreements with Cedar LNG Partners LP, a partnership between the Haisla Nation and Pembina Pipeline Corp. advancing the Cedar LNG project.

Under the liquefaction agreement, ARC will deliver approximately 200 MMcf (million cubic feet) per day of natural gas for liquefaction by the project for a term of 20 years commencing with commercial operations, anticipated in the second half of 2028. The liquefaction agreement is subject to a positive final investment decision and other customary conditions precedent with respect to the project.

"Today, we take another step forward in supplying low-cost Canadian energy to our partners overseas, bolstering energy security and helping to reduce emissions worldwide. Located on Canada's West Coast, Cedar LNG will produce some of the lowest-carbon, cost-competitive LNG with one of the shortest shipping routes to key Asian markets," said Terry Anderson, president and chief executive officer, ARC. "We are pleased to partner with Cedar LNG, the Haisla Nation and Pembina Pipeline Corp. to advance the development of this critical project for Canada and our global partners around the world."

"We are extremely pleased to be working with ARC Resources to deliver Canadian LNG to world markets, given their expertise and track record as a responsible producer of natural gas and knowledge of global LNG dynamics," said Scott Burrows, Pembina's president and chief executive officer. "Working together, the Haisla Nation, ARC Resources and Pembina are committed to making an indigenous majority-owned LNG facility a reality while simultaneously being a leader in environmental stewardship and delivering low carbon energy solutions."

The project is located in Kitimat, B.C., within the traditional territory of the Haisla Nation. As the first majority indigenous-owned liquefied natural gas (LNG) facility in Canada, the project will provide economic and social benefits to the Haisla Nation in support of reconciliation, while providing opportunities for Canadians more broadly.

"Today is the day we have been working towards in achieving our offtake agreement with ARC Resources. ARC's commitments and values to responsible development not only align with our nation but with Cedar LNG," said Crystal Smith, Chief Councillor for the Haisla Nation.

In addition to the agreement with Cedar LNG, ARC has entered into a non-binding heads of agreement (HOA) with an investment-grade rated company with extensive experience in the LNG value chain, for the associated LNG offtake -- the equivalent of approximately 1.5 million tonnes per annum (mtpa) of LNG.

• The HOA outlines the terms of an anticipated 20-year LNG sale and purchase agreement (SPA) for the entirety of ARC's LNG delivered from the project, and would commence with the start-up of the project. The SPA is anticipated to be finalized by year-end 2024.
• Combined with the liquefaction agreement, the SPA will provide ARC access to international LNG prices for natural gas sold at Cedar LNG.

"ARC has reached an important milestone in our strategy to diversify and expand margins through participation in the global LNG market," added Mr. Anderson. "The demand and level of interest in our low-emissions natural gas from key consuming nations and global LNG counterparties is evident. With our agreement with Cedar LNG, we are able to achieve our target of linking approximately 25 per cent of ARC's future natural gas production to international pricing."

Today's announcement marks the third long-term agreement the company has entered into that provides exposure to foreign indices. In 2022, ARC announced an agreement to supply 140,000 MMBtu (million British thermal units)/day of natural gas to Cheniere's Corpus Christi stage III expansion with pricing linked to JKM. In 2023, the company announced its second agreement with Cheniere to supply 140,000 MMBtu/day to Cheniere's SPL expansion project with pricing linked to the Dutch Title Transfer facility (TTF).

About ARC Resources Ltd.

ARC Resources is a pure-play Montney producer and one of Canada's largest dividend-paying energy companies, featuring low-cost operations and leading ESG (environmental, social and governance) performance. ARC's investment-grade credit profile is supported by commodity and geographic diversity and robust risk management practices around all aspects of the business. ARC's common shares trade on the Toronto Stock Exchange under the symbol ARX.

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