Liquids-rich natural gas wells and stronger commodity prices more than paid for an expensive corporate takeover and turned Montney shale specialist Arc Resources Ltd. back into a profitable producer during the first six months of this year.

Increased output and prices of all products – natural gas, oil and condensate, and natural gas liquids (NGL) – more than offset the initial costs of the company’s takeover of Calgary peer Seven Generations Energy Ltd. The deal closed in April.

Gas production grew to 999.9 MMcf/d in the first half of 2021 from 732.7 MMcf/d a year earlier. Oil and condensate doubled to 56,448 b/d from 28,243 b/d. NGLs jumped 3.5-fold to 30,479 b/d from 8,779 b/d.

Arc fetched an average price for its natural gas of C$3.87/Mcf ($3.10/Mcf) in the first...