The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kaleinoheaokealaula Akamine - Bank of America - Analyst
: My first question is on the shape of the Attachie ramp, it kind of has us thinking about the lower half of oil guidance here for the year. Can you give
us some confidence on the path forward for your other condensate asset at Kakwa? What does that ramp look like? And where do you think it
could top out?
Question: Kaleinoheaokealaula Akamine - Bank of America - Analyst
: Got it, Kris. I appreciate that. It sounds like you guys are still in really good shape for the year. My next question is on Sunrise. I think the shut-in
here makes a lot of sense given where prices are at Station 2. My question is, why wait until March? We kind of thought those volumes looked a
touch high in the first quarter. So the question is, why not re-route a little bit more to other markets given your strong commercial model?
Question: James Kubik - CIBC World Markets - Analyst
: I'm just curious if you can talk a little bit more on the emulsion that you're seeing at Attachie. And how that compares to, I guess, original expectations?
And then perhaps how you might adjust Phase II to accommodate for something similar?
Question: James Kubik - CIBC World Markets - Analyst
: Okay. I appreciate the color there, guys. And a follow-on question, a little bit of a different area. But capital spending for ARC in the quarter, well
below where we expected in consensus estimates. Can you talk a little bit about the shape of spending in 2025 quarter-by-quarter.
And then could you also talk a little bit about any inflation impacts you're seeing in your AFEs? I know that there's been some puts and takes in
steel and sand. Anything that you can talk about there?
Question: Patrick O'Rourke - ATB Capital Markets Inc - Analyst
: Sorry about that. I just -- I was just curious, I wanted to ask a little bit further on the Station 2 exposure here. Sunrise assets are going to support
the gas that you're going to ship through your LNG Canada agreement, these being sort of the last marginal molecules in the portfolio that you
sell at Station 2. Once that agreement is on, does that sort of eliminate that exposure and the need to shut in gas at the asset going forward in the
second half of the year?
Question: Patrick O'Rourke - ATB Capital Markets Inc - Analyst
: Okay. And then in the quarter, you sort of -- you paid down a little bit of debt here. Obviously, we're in a pretty choppy commodity environment.
Can you -- how do you see the NCIB, the pacing of return on capital throughout the balance of the year? Are you a little more cautious in how you
deploy that with the environment that we've been in given the second half of the year looks like a bigger production ramp for the company.
| 
