April 29, 2026
WHITECAP REPORTS RECORD FIRST QUARTER 2026 PRODUCTION AND INCREASES 2026 PRODUCTION GUIDANCE
CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to report its operating and unaudited financial results for the three months ended March 31, 2026.
Selected financial and operating information is outlined below and should be read with Whitecap’s unaudited interim consolidated financial statements and related management’s discussion and analysis for the three months ended March 31, 2026 which are available at sedarplus.ca and on our website at wcap.ca.
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Financial ($ millions except for share amounts) |
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Three months ended Mar. 31 |
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|
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2026 |
2025 |
|
|
Petroleum and natural gas revenues |
|
|
2,042.0 |
942.2 |
|
Net income |
|
|
22.3 |
162.6 |
|
Basic ($/share) |
|
|
0.02 |
0.28 |
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Diluted ($/share) |
|
|
0.02 |
0.27 |
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Funds flow 1 |
|
|
1,025.3 |
446.3 |
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Basic ($/share) 1 |
|
|
0.84 |
0.76 |
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Diluted ($/share) 1 |
|
|
0.84 |
0.75 |
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Dividends declared |
|
|
221.3 |
107.2 |
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Per share |
|
|
0.18 |
0.18 |
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Expenditures on property, plant and equipment 2 |
|
|
676.3 |
398.1 |
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Free funds flow 1 |
|
|
349.0 |
48.2 |
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Net debt 1 |
|
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3,249.4 |
986.9 |
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Operating |
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|
|
|
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Average daily production |
|
|
|
|
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Crude oil and condensate (bbls/d) |
|
|
201,187 |
96,637 |
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NGLs (bbls/d) |
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|
40,920 |
19,295 |
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Natural gas (Mcf/d) |
|
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895,854 |
378,715 |
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Total (boe/d) 3 |
|
|
391,416 |
179,051 |
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Average realized price 1,4 |
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|
|
|
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Crude oil and condensate ($/bbl) |
|
|
92.06 |
93.05 |
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NGLs ($/bbl) |
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32.34 |
29.66 |
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Natural gas ($/Mcf) |
|
|
3.18 |
2.39 |
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Petroleum and natural gas revenues ($/boe) 1 |
|
|
57.97 |
58.47 |
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Operating netback ($/boe) 1 |
|
|
|
|
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Petroleum and natural gas revenues1 |
|
|
57.97 |
58.47 |
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Tariffs 1 |
|
|
(0.20) |
(0.29) |
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Processing & other income 1 |
|
|
0.49 |
0.81 |
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Marketing revenues 1 |
|
|
0.83 |
3.88 |
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Petroleum and natural gas sales 1 |
|
|
59.09 |
62.87 |
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Realized gain (loss) on commodity contracts 1 |
|
|
(0.58) |
0.85 |
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Royalties 1 |
|
|
(6.94) |
(9.80) |
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Operating expenses 1 |
|
|
(12.02) |
(13.57) |
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Transportation expenses 1 |
|
|
(3.50) |
(2.35) |
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Marketing expenses 1 |
|
|
(0.82) |
(3.79) |
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Operating netbacks |
|
|
35.23 |
34.21 |
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Share information (millions) |
|
|
|
|
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Common shares outstanding, end of period |
|
|
1,213.8 |
587.5 |
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Weighted average basic shares outstanding |
|
|
1,213.9 |
587.5 |
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Weighted average diluted shares outstanding |
|
|
1,220.2 |
592.4 |
MESSAGE TO SHAREHOLDERS
Whitecap continues to deliver exceptionally strong results as evidenced in the first quarter, with average production of 391,416 boe/d (62% liquids), exceeding our original budget expectations by approximately 19,000 boe/d, driven by robust new well productivity, strong base production performance and improved cycle times that brought wells onstream ahead of plan.
Since the first quarter of 2025, funds flow more than doubled to over $1.0 billion in the quarter, primarily reflecting the impact of the acquisition of Veren Inc. More importantly, funds flow per share increased 12%, demonstrating the realization of structural synergies despite weaker average realized commodity prices.
This performance was supported by continued cost discipline, with operating costs decreasing 11% to $12.02/boe below our guidance range of $12.25/boe – $12.75/boe.
Operational activity remained high, with peak utilization of 18 drilling rigs, resulting in the drilling of 31 (31.0 net) unconventional wells and 54 (47.3 net) conventional wells, while continuing to advance the construction of the Company’s Lator phase 1 facility. These results reflect strong operational momentum carried forward from the fourth quarter of 2025 and consistent execution across the entire asset base.
As a result, the Company is increasing its full year production guidance by 7,500 boe/d to 378,000 – 382,000 (61% liquids) while maintaining its capital expenditure budget of $2.0 – $2.1 billion, demonstrating improved capital efficiency and execution.
The Company’s balance sheet remains in exceptional shape, with net debt to annualized funds flow ratio1 of 0.8 times and $1.2 billion of unused credit capacity. During the quarter, the Company proactively reduced its bank credit facility from $3.0 billion to $2.5 billion, lowering standby charges and extended the maturity date to September 19, 2030, further enhancing financial flexibility.
First Quarter 2026 Highlights
· Strong first quarter funds flow: Generated funds flow of $1.0 billion ($0.84 per share), a 12% increase per share, driven by higher production, strong realized pricing and lower operating costs.
· Disciplined capital investment and free cash generation: Capital investments of $676 million resulted in free funds flow of $349 million for the quarter.
· Record production: Production averaged a record 391,416 boe/d, comprised of 242,107 bbls/d of liquids and 895,854 mcf/d of natural gas, an increase of 6% on a per share basis5 over the first quarter of 2025.
· Shareholder returns and balance sheet improvement: Returned $221 million in dividends during the quarter and reduced net debt to $3.2 billion, resulting in a net debt to annualized funds flow ratio of 0.8 times and $1.2 billion of undrawn credit capacity.
OPERATIONS REVIEW
Operational momentum carried over from 2025, with a continued focus on structural improvements being reflected in strong first quarter operating and production results. Continued well level outperformance is incorporated into our guidance increase, while ongoing cost discipline and solid execution are driving margin expansion and enhanced capital efficiency, all of which support increased profitability across the business.
Unconventional Highlights
Half of corporate outperformance in the quarter was driven by the Unconventional division, which was largely attributable to strong new well productivity. Initial production results across our Montney and Duvernay assets were approximately 10% above expectations.
During the quarter, we completed two plug-and-perf ("P&P") pilot pads at Karr with strong execution across all seven (7.0 net) wells. The wells achieved greater than 95% stimulation effectiveness, and we estimate cost savings of approximately $2 million per well compared to area wells utilizing single-point entry completion technology. Early-time production rates are in line with expectations. Our pilot P&P pad in Gold Creek will spud later in 2026. Across our Montney development, well and completion design will continue to be optimized on area-specific performance, cost and risk considerations.
Operational efficiency continues to improve across both drilling and completions key performance indicators. Ongoing well design enhancements and execution improvements, including the use of actively guided completions, have increased proppant pumped per day across our unconventional division by 12% relative to historical performance. In addition, drilling rates of penetration have improved by 27% on average across the division. These gains reflect continued focus on consistency, efficiency and the application of learnings across the portfolio.
Conventional Highlights
The Conventional division continued to generate outsized free funds flow, representing approximately 25% of total capital expenditures while contributing almost 60% of operating free funds flow in the first quarter. The Alberta and Saskatchewan conventional assets accounted for the remaining half of corporate outperformance in the quarter, where new well productivity and base production optimization exceeded expectations. We also benefited from access to previously unavailable third-party infrastructure capacity, which contributed approximately 3,000 boe/d to Glauconite production volumes during the quarter.
Our open hole multi-lateral ("OHML") Bakken development continues to push technical and operational boundaries, highlighted by the recent drilling of a 10-leg, 3-mile OHML well. With over 43,000 metres drilled, this represents the longest well in Canada and underscores the strength of our technical and operational capabilities. The well was brought on production in April, and positive results are expected to enhance our inventory depth, improve long-term capital efficiency and further validate the applicability of OHML technology across our conventional asset base.
Additional initiatives contributing to strong first quarter results include optimized development sequencing and lower drilling and completion costs, resulting in shorter cycle times and enhanced capital efficiency. Our Frobisher assets were the most active assets during the quarter and drove the operational improvements with a 7% decrease in drilling costs per metre and a 15% decrease in equipping costs relative to historical performance.
OUTLOOK
The ongoing conflict in the Middle East has introduced significant commodity price volatility, with WTI trading between US$70/bbl and US$115/bbl since the conflict started, while Edmonton light oil and condensate prices have strengthened to a premium to WTI. These dynamics have materially improved our cash flow outlook, although only one month of this benefit is reflected in our first quarter results. In this environment, we remain focused on disciplined execution and prioritizing the realization of these gains to maximize free funds flow optionality. The current geopolitical landscape continues to reinforce the importance of energy security, positioning Canada as a reliable supplier of both crude oil and natural gas to global markets.
We remain committed to a disciplined capital program and a counter-cyclical approach to free funds flow allocation. Based on current strip pricing6, we expect to reduce our year end 2026 net debt by more than $1 billion compared to our year end 2025 net debt, which will result in a net debt to funds flow ratio of 0.5 times. This further strengthens our balance sheet and positions the Company to capture incremental opportunities in the future on behalf of shareholders. Our long-term target remains a net debt to funds flow ratio of less than 1.0 times through commodity cycles.
In natural gas markets, AECO pricing remains weak and is expected to average below $2.00/GJ for the balance of the year, reflecting continued supply growth in Western Canada. This underscores the importance of price diversification, as demonstrated in the first quarter where we achieved an average realized price of $3.18/mcf compared to AECO of $2.01/mcf. We will continue to expand market diversification through long-term contracts, increasing exposure to international and U.S. markets. Our risk management strategy remains active, with approximately 28% of 2026 natural gas production hedged at an average swap price of over $4.00/mcf and 13% hedged at an average swap price of approximately $3.00/mcf in 2027.
Given elevated oil prices, we have also prudently added to our hedge positions, with approximately 34% of 2026 crude oil production and 23% of 2027 production hedged. Despite the incremental uplift in funds flow, our strategy remains unchanged. We continue to target annual production growth of 3% to 5% while maintaining a counter-cyclical approach to capital allocation and prioritizing balance sheet strength.
On behalf of our employees, management team and Board of Directors, we thank our shareholders for their continued support and confidence.
NOTES
1 Funds flow, funds flow basic ($/share), funds flow diluted ($/share) and net debt are capital management measures. Average realized price, annualized funds flow, net debt to annualized funds flow ratio and per boe disclosure figures are supplementary financial measures. Operating netback and free funds flow are non-GAAP financial measures. Operating netbacks ($/boe) is a non-GAAP ratio. Refer to the Specified Financial Measures section in this press release for additional disclosure and assumptions.
2 Also referred to herein as "capital expenditures" and "capital investment".
3 Disclosure of production on a per boe basis in this press release consists of the constituent product types and their respective quantities disclosed herein. Refer to Barrel of Oil Equivalency and Production & Product Type Information in this press release for additional disclosure.
4 Prior to the impact of risk management activities and tariffs.
5 Production per share is the Company's total crude oil, NGL and natural gas production volumes for the applicable period divided by the weighted average number of diluted shares outstanding for the applicable period. Production per share growth is determined in comparison to the applicable comparative period.
6 Strip pricing as of April 28, 2026, with average WTI of ~US$87/bbl, AECO of ~$1.50/GJ and USD/CAD of $1.36 for the remainder of 2026.
CONFERENCE CALL AND WEBCAST
Whitecap has scheduled a conference call and webcast to begin promptly at 9:00 am MT (11:00 am ET) on Thursday, April 30, 2026.
The conference call dial-in number is: 1-888-510-2154 or (403) 910-0389 or (437) 900-0527
A live webcast of the conference call will be accessible on Whitecap’s website at wcap.ca by selecting "Investors", then "Presentations & Events". Shortly after the live webcast, an archived version will be available for approximately 14 days.
For further information:
Grant Fagerheim, President & CEO
or
Thanh Kang, Senior Vice President & CFO
Whitecap Resources Inc.
3800, 525 – 8th Avenue SW
Calgary, AB T2P 1G1
(403) 266-0767
wcap.ca
InvestorRelations@wcap.ca
Refer to full press release for forward-looking statements and advisories.
