ARC Resources reported earnings after the market close Wednesday. The firm exceeded our expectations for production levels and earnings thanks to favorable well results in the Cardium region and minimal gas plant downtime at Dawson. Production for the quarter averaged 95.4 thousand barrels of oil equivalent per day. In addition to the favorable operations in the Cardium and Dawson plays, additional gas processing capacity at Ante Creek allowed the firm to begin increasing production levels, in line with our thesis. Operating cash flow was spot on our estimate, while capital spending was about 15% higher than we expected, but we do not foresee any significant changes to our 2013 forecast as we update our model for this quarter’s results and the most recent forward commodity prices. We expect to maintain our fair value estimate and narrow moat rating.