PRODUCTIOn HISTORY PRODUCTIOn 39/61 LIQUID/gAS SPLIT boe/d 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Mobil Orion Ante Creek Startech Redwater/nPCU Dawson gas Plant #1 Storm  96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Q410 gAS (6:1) LIQUIDS TOP PROPERTIES BY PRODUCTIOn vOLUME 2010 DAILY AvERAgE PRODUCTIOn HISTORY boe/d 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Dawson Redwater nth Pemina Cu Barrymoor CU Lougheed MBvW groundbirch+ goodlands Antecreek Parkland Weyburn Unit Brooks 8 - 18 Mipa 1&2&8 Wardlow6-6 $^{Lougheed}$Midale Unit gAS  LIQUIDS 14 AnnuAl  report ARC ResouRCes 10 In 2010, ARC executed a successful and disciplined capital program focusing on the strategic exploitation  and development of our high quality asset base. Better then anticipated well performance at Dawson,  the redeployment of capital to higher return projects and diligent cost control allowed ARC to achieve  all of the objectives of its original $625 million budget while spending only $591 million. ARC drilled a  total of 176 gross wells (165 net wells) on its operated properties with a 100 per cent success rate.  ARC’s capital program in 2010 replaced 502 per cent of annual production at an all-in F&D cost  of $6.47 per boe excluding FDC for the P+P category. Our three-year average F&D excluding FDC is  $6.93 per boe on a P+P basis. We expect these F&D results to be “top tier” in the Canadian oil and gas  industry in 2010.  Our 2009 capital program set the stage for the significant growth we achieved in 2010, and our 2010  program has set the stage for growth in 2011. While full year production volumes for 2010 averaged  73,954 boe per day, a 16 per cent increase over 2009, the impact of our successful program was  evident in the fourth quarter of 2010, when production averaged 84,686 boe per day – an increase of  35 per cent over the fourth quarter in 2009. This increase in the latter part of 2010 reflects the construction  and commissioning of the Phase 1 gas plant in the main Dawson field, which brought on 60 mmcf per  day of natural gas and 8,800 boe per day from the Storm acquisition, which closed on August 17, 2010.  The highlight of the 2010 capital program was the completion of the Phase 1 gas plant in Dawson and  the subsequent safe start-up of the plant. Throughout the last half of 2010, this plant operated safely  and reliably at rates in excess of 60 mmcf per day. Construction of a second 60 mmcf per day gas plant  at Dawson is well under way with an expected start-up of April 2011. Including the gas plants, a total of  $240 million was allocated to the exploitation and development of the Montney resource play in British  Columbia, the largest component of the 2010 capital program. With continued success of our Montney  drilling program and excellent well performance from the existing wells, we were able to add a total of  382 Bcf of reserves in the greater Dawson area through the drill bit. The ability to sustain our production  from internal opportunities speaks to the high quality of our assets and the ability of our technical team  to exploit these assets. (Additional information on the reserves can be found in the “ARC Resources Ltd.  2010 Year-end Reserves Increase by 29 Per cent” news release dated February 10, 2011). ARC’s board of directors approved a $625 million capital program for 2011 that will deliver considerable  growth in 2012 (2011 growth will be primarily derived from 2010 development). The 2011 capital program  focuses on liquids-rich opportunities at Ante Creek and Pembina in Alberta, Parkland in British Columbia  and our oil properties in southeast Saskatchewan and southwest Manitoba. Continued, staged development  of the Montney opportunities in northeast British Columbia is also a very important part of the program.  ARC is forecasting average daily production of 84,000 boe per day to 87,000 boe per day in 2011 based on  our existing assets and current drilling opportunities and an exit rate of 93,000 boe per day.  2011 gUIDAnCE SUMMARY OF ARC’S 2010 AnD 2011 gUIDAnCE AnD A REvIEW  OF 2010 ACTUAL RESULTS COMPARED TO gUIDAnCE.  2010 guidAnce  2010 ActuAl  % VAriAnce 2011 guidAnce Production (boe/d)  72,500 – 74,500  73,954  –  84,000 – 87,000 Expenses ($/boe):  Operating costs 10.00  9.70  (3)  9.55 Transportation 1.10  1.10  –  1.15 Cash general and administrative (prior to long-term incentive compensation)  2.00  2.19  10  1.70 Interest  1.70  1.57  (8)  1.35 Capital expenditures ($ millions)  625  591  (5)  625 Annual weighted average common shares (millions)  264  264  –  28