On ARC Resources’ Q4 2025 earnings call, much of the investor focus centered on one question: what’s happening at Attachie? Management addressed it head-on, and the message was more about capital discipline than asset quality.
Slowing down — by design
ARC was explicit that it is intentionally slowing development at Attachie, not abandoning it. Early Upper Montney pads — particularly the 3-12 pad — have not yet met expectations. Importantly, these wells are still very early life, only five to six weeks on production, and continue to clean up. Rather than push forward with additional capital before understanding the results, ARC chose to pause new pad development and evaluate performance first ARC Resources Ltd. (ARX_CA) Q4 ….
The issue isn’t geology
Management repeatedly emphasized that the concern is not the resource itself. ARC does not believe the underperformance is related to water, broader geology, or an aerial trend across the asset. In fact, strong wells exist on both sides of the underperforming pad. The working hypothesis is that completion effectiveness, including casing deformation, may be limiting the ability to fully stimulate the reservoir ARC Resources Ltd. (ARX_CA) Q4 ….
As management framed it, the challenge is not whether the hydrocarbons are there — it’s how best to access them consistently.
Why ARC removed Attachie guidance
ARC removed asset-level guidance for Attachie to avoid unnecessary short-term noise. Slowing development affects well timing and production ramp-ups, which can create volatility that distracts from long-term value creation. Corporate production and capital guidance for 2026 remained unchanged, reinforcing that Attachie is a portfolio optimization issue, not a company-level problem ARC Resources Ltd. (ARX_CA) Q4 ….
Capital remains flexible
Roughly $250 million of planned Attachie capital remains a placeholder. ARC made it clear this capital is not committed by default. Depending on learnings, funds may be:
- selectively deployed at Attachie once performance improves, or
- reallocated to higher-confidence assets such as Kakwa
This flexibility reflects ARC’s stated priority: profitability over volume growth ARC Resources Ltd. (ARX_CA) Q4 ….
Long-term confidence hasn’t changed
Despite near-term caution, ARC reiterated its confidence in Attachie’s long-term potential. The asset spans roughly 360 net sections, and only about 10% of the acreage has been developed to date. Management indicated future plans may involve spreading development beyond the initial concentrated area and adjusting spacing and completion design to unlock more consistent results ARC Resources Ltd. (ARX_CA) Q4 ….
The real message
ARC’s commentary on Attachie wasn’t defensive — it was deliberate. Management is signaling that rushing capital into an asset before the technical model is fully understood is a bigger risk than slowing activity. With a strong base business, particularly at Kakwa, ARC has the luxury to wait, learn, and optimize.
In short, ARC’s position was clear: Attachie is not broken — but it’s not ready to be scaled until returns are repeatable.
