Throughout this report we have highlighted ARC’s 2013 operating and financial performance. ARC’s success as a profitable oil and gas producer reaches outside of
our organization and contributes to the creation of vibrant and
We do this through providing employment and business opportunities, payment of government taxes and royalties, generating shareholder value and giving back to our communities. Here is a look at ARC’s contribution in these areas in 2013:
Salaries and Compensation
: ARC employs over 600
including permanent employees and contractors throughout western Canada. Total employee compensation in 2013 was $129
and additionally, ARC invested $1.3 million into employee training and development; a direct contribution to the development of the workforce in western Canada.
Taxes and Royalties
: In 2013, ARC paid $18 million in business and property taxes, $6 million(3)
in provincial sales tax , $223 million in provincial royalties and $16 million in income taxes. With operations in Manitoba, Saskatchewan, Alberta and British Columbia, the monies ARC pays in taxes and royalties goes toward vital public services, from which we all benefit, such as health care, education and public infrastructure.
Goods and Services
ARC makes an effort to use local goods and services wherever possible, positively boosting local economies in and around our operations.
: ARC executed a robust capital program in 2013, actively developing our asset base. This activity resulted in $1.2 billion(4)
of spending on goods and services. As part of this total spending we worked with over 3,500 suppliers, helping to create and sustain jobs throughout the supply chain. ARC makes an effort to use local good and services wherever possible, positively boosting local economies in and around our operations.
ARC has a long track record of delivering shareholder value, with a 19 per cent compound annual return since inception in 1996 and a 27 per cent total return in 2013. The payment of a dividend is a fundamental part of our strategy. During 2013 ARC paid $374 million in dividends to shareholders, and since inception has paid nearly $5 billion.
: In 2013, ARC contributed $2.3 million to community and not-for-profit organizations across our operating areas. Through our donations we assisted over 400 organizations who are helping to build healthier and stronger communities.
I am proud of the role ARC plays in contributing to the socio-economic health of our communities. A focus on building a sustainable and long-term business has been pivotal to ARC’s success and will remain central as we continue to grow our business; helping to ensure we can continue to create value years into the future.
Senior Vice President and Chief Financial Officer