tW elve Months enDeD DeCeMbeR 31  2010 2009 FIn A n CIA l (CDn$ MIllIons, eXCept peR shARe AnD peR boe AMounts) (Cdn$ millions, except per share and per boe amounts)  Revenue before royalties  1,213.7 978.2 p er share  (1) 4.59 4.16 Cash flow from operating activities  (2) 673.9 497.4 per share  (1) 2.55 2.11 net income  260.8 225.1 per share  (1) 0.99 0.96 operating income  (3) 244.2 181.2 per share  (1) 0.92 0.77 Distributions  313.5 298.5 per unit  (1) 1.20 1.28 Capital expenditures  590.9 359.6 net debt outstanding  (4) 872.7 902.4 opeRAtInG production Crude oil (bbl/d)  27,341 27,509 natural gas (mmcf/d)  254.2 194.0 natural gas liquids (bbl/d)  4,245 3,689 t otal (boe/d)  73,954 63,538 A verage prices  Crude oil ($/bbl)  73.85 62.24 n atural gas ($/mcf)  4.21 4.18 n atural gas liquids ($/bbl)  53.98 40.67 o il equiv alent ($/boe)  44.88 42.07 o perating netback ($/boe)  Commodity and other revenue (before hedging)  44.96 42.17 t ransportation costs  (1.10) (0.89) Roy alties (7.14) (6.37) o perating costs  (9.70) (10.19) n etback (before hedging)  27.02 24.72 Realized gain on risk management contracts  2.20 0.54 n etback (after hedging)  29.22 25.26 eQu I tY (millions) shares outstanding, end of period  284.4 239.0 Weighted average shares  (5) 264.2 235.4 tRADInG stAtIstICs (Cdn$, except volumes - based on intra-day trading) high 26.04 21.89 low 18.77 11.73 Close 25.41 19.94 Average daily volume (thousands)  1,197 1,057 (1) prior to the conversion to a corporation, Arc had “units” outstanding instead of “shares”. in all cases, the term per share can be interpreted as per unit prior to december 31, 2010. per share  amounts (with the exception of per unit distributions, which are based on the number of trust units outstanding at each distribution record date) are based on diluted common shares. (2) cash flow from operating activities is a gAAp measure. Historically, management has disclosed cash flow from operations as a non-gAAp measure calculated using cash flow from operating activities less the change in non-cash working capital and the expenditures on site restoration and reclamation as they appear on the consolidated statements of cash flows. cash flow from  operations is $680.6 million ($2.58 per share) for 2010 and $518 million ($2.20 per share) for 2009. (3) operating income is a non-gAAp measure and is calculated using net income (loss) less significant one-time items and items that are not indicative of operating performance. for 2010 and 2009,  operating income was derived using net income (loss) less unrealized gains/losses on risk management contracts, net of tax, and unrealized foreign exchange gains/losses on us$ denominated  debt, net of tax. (4) net debt excludes current unrealized amounts pertaining to risk management contracts and the current portion of future income taxes. (5) diluted common shares. 6 ARC ResouRCes AnnuAl  report 10