I like Arc for the same reasons I like Mercedes Benz - quality, safety and confidence on the road, no matter the conditions. ~50% hedged and ~50% unhedged is well balanced. A 'safety first' Mercedes sedan also has over 600hp, so don't be fooled by four doors and an executive behind the wheel, as it will outperform most cars on the road. It's all about perspective when evaluating hedges. Arc will be one of the long term survivors, with an increasing market share because of their discipline paired with its large powertrain of production. Invest in what you believe in. I have full confidence in Arc.
From Q2 results..
The following table summarizes ARC's average realized prices for the second quarter of 2021 relative to the first quarter of 2021 and ARC's average realized prices for the first half of 2021 relative to the first half of 2020.
| | Three Months Ended | Six Months Ended |
| | June 30,
2021 | | March 31, 2021(1) | | % Change | | June 30,
2021 | | June 30, 2020(1) | | % Change |
| Average natural gas price before diversification activities ($/Mcf) | 3.37 | | 3.19 | | 6 | | 3.34 | | 2.10 | | 59 |
| Natural gas diversification activities ($/Mcf) | (0.03) | | 1.41 | | (102) | | 0.50 | | (0.12) | | (517) |
| Realized gain (loss) on risk management contracts ($/Mcf)(2) | (0.18) | | (0.21) | | (14) | | (0.19) | | 0.10 | | (290) |
| Average realized natural gas price including realized gain (loss) on risk management contracts ($/Mcf) | 3.16 | | 4.39 | | (28) | | 3.65 | | 2.08 | | 75 |
| Average realized crude oil price ($/bbl) | 74.01 | | 64.46 | | 15 | | 68.89 | | 38.53 | | 79 |
| Average realized condensate price ($/bbl) | 77.93 | | 71.59 | | 9 | | 76.93 | | 43.48 | | 77 |
| Average realized NGLs price ($/bbl) | 22.19 | | 29.45 | | (25) | | 23.45 | | 8.76 | | 168 |
| Total average realized commodity price ($/boe) | 34.90 | | 34.25 | | 2 | | 34.68 | | 16.83 | | 106 |
| (1) | Comparative figures represent ARC's results prior to the closing of the Business Combination on April 6, 2021, and therefore do not reflect historical data from Seven Generations. |
| (2) | Realized gain (loss) on risk management contracts is not included in ARC's average realized natural gas price. |
ARC's risk management program reduces volatility in funds from operations to support ARC's dividend, capital program, and deleveraging plan. For the balance of 2021, ARC has hedged approximately 50 per cent of both its expected crude oil and condensate and natural gas production at levels that generate profitable rates of return.