Morningstar DBRS Assigns Credit Rating of BBB With a Stable Trend to ARC Resources Ltd.'s Unsecured Notes Offering

DBRS, Inc. (Morningstar DBRS) assigns a credit rating of BBB with a Stable trend to ARC Resources Ltd.'s (ARC or the Company; rated BBB with a Stable trend) offering of (1) $550 million 3.577% Senior Unsecured Notes due June 17, 2028 (Series 3); and (2) $450 million 4.409% Senior Unsecured Notes due June 17, 2032 (Series 4). Morningstar DBRS notes that the Company intends to use the net proceeds from the Notes to complete the acquisition of certain assets and for general corporate purposes.

The credit ratings are underpinned by ARC's large scale in the liquids-rich Montney resource play, competitive cost structure, successful track record of integrating acquired assets, and conservative financial policy.

The credit rating assigned to this newly issued debt instrument is based on the credit ratings of an already-outstanding debt series of the above-mentioned debt instrument. Please refer to https://dbrs.morningstar.com/research/448432 for more information, including all relevant disclosures.

The ratings listed above are based on the 1) Trust Indenture dated March 10, 2021; 2) First Supplemental Trust Indenture dated March 10, 2021; 3) Second Supplemental Trust Indenture dated March 10, 2021; 4) Third Supplemental Trust Indenture dated June 17, 2025; 5) Fourth Supplemental Trust Indenture dated June 17, 2025; 6) Final Term Sheets dated June 3, 2025 and information provided by ARC to Morningstar DBRS as of June 17, 2025.

Continuation of the ratings is subject to the provision to Morningstar DBRS of timely and sufficient information and/or data for the purposes of monitoring the above-noted ratings.

Information regarding Morningstar DBRS credit ratings, including definitions, policies, and methodologies, is available on dbrs.morningstar.com or contact us at info-DBRS@morningstar.com.

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