July 29, 2026
WHITECAP REPORTS RECORD SECOND QUARTER 2026 FINANCIAL RESULTS AND INCREASED 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 and six months ended June 30, 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 and six months ended June 30, 2026 which are available at sedarplus.ca and on our website at wcap.ca.
|
Financial ($ millions except for share amounts) |
Three months ended Jun. 30 |
Six months ended Jun. 30 |
||
|
2026 |
2025 |
2026 |
2025 |
|
|
Petroleum and natural gas revenues |
2,633.4 |
1,365.3 |
4,675.4 |
2,307.5 |
|
Net income |
889.5 |
310.6 |
911.8 |
473.2 |
|
Basic ($/share) |
0.73 |
0.33 |
0.75 |
0.62 |
|
Diluted ($/share) |
0.73 |
0.33 |
0.75 |
0.61 |
|
Funds flow 1 |
1,354.6 |
712.8 |
2,379.9 |
1,159.1 |
|
Basic ($/share) 1 |
1.11 |
0.76 |
1.96 |
1.51 |
|
Diluted ($/share) 1 |
1.11 |
0.75 |
1.95 |
1.50 |
|
Dividends declared |
221.4 |
185.4 |
442.7 |
292.6 |
|
Per share |
0.18 |
0.18 |
0.36 |
0.36 |
|
Expenditures on property, plant and equipment 2 |
430.1 |
408.8 |
1,106.4 |
806.9 |
|
Free funds flow 1 |
924.5 |
304.0 |
1,273.5 |
352.2 |
|
Net debt 1 |
2,516.8 |
3,290.1 |
2,516.8 |
3,290.1 |
|
Operating |
|
|
|
|
|
Average daily production |
|
|
|
|
|
Crude oil and condensate (bbls/d) |
200,725 |
159,670 |
200,955 |
128,328 |
|
NGLs (bbls/d) |
38,358 |
27,499 |
39,632 |
23,420 |
|
Natural gas (Mcf/d) |
898,864 |
633,511 |
897,367 |
506,817 |
|
Total (boe/d) 3 |
388,894 |
292,754 |
390,148 |
236,218 |
|
Average realized price 1,4 |
|
|
|
|
|
Crude oil and condensate ($/bbl) |
127.82 |
83.15 |
110.02 |
86.86 |
|
NGLs ($/bbl) |
31.97 |
20.18 |
32.16 |
24.06 |
|
Natural gas ($/Mcf) |
2.29 |
1.85 |
2.73 |
2.05 |
|
Petroleum and natural gas revenues ($/boe) 1 |
74.41 |
51.25 |
66.21 |
53.97 |
|
Operating netback ($/boe) 1 |
|
|
|
|
|
Petroleum and natural gas revenues1 |
74.41 |
51.25 |
66.21 |
53.97 |
|
Tariffs 1 |
(0.38) |
(0.44) |
(0.29) |
(0.38) |
|
Processing & other income 1 |
0.41 |
0.46 |
0.45 |
0.59 |
|
Marketing revenues 1 |
1.81 |
3.04 |
1.32 |
3.36 |
|
Petroleum and natural gas sales 1 |
76.25 |
54.31 |
67.69 |
57.54 |
|
Realized gain (loss) on commodity contracts 1 |
(5.37) |
1.62 |
(2.98) |
1.33 |
|
Royalties 1 |
(9.86) |
(6.97) |
(8.41) |
(8.04) |
|
Operating expenses 1 |
(11.88) |
(13.58) |
(11.95) |
(13.58) |
|
Transportation expenses 1 |
(3.55) |
(2.80) |
(3.53) |
(2.63) |
|
Marketing expenses 1 |
(1.75) |
(3.04) |
(1.29) |
(3.32) |
|
Operating netbacks |
43.84 |
29.54 |
39.53 |
31.30 |
|
Share information (millions) |
|
|
|
|
|
Common shares outstanding, end of period |
1,215.7 |
1,231.6 |
1,215.7 |
1,231.6 |
|
Weighted average basic shares outstanding |
1,214.9 |
941.4 |
1,214.4 |
765.4 |
|
Weighted average diluted shares outstanding |
1,221.7 |
946.4 |
1,220.5 |
770.2 |
MESSAGE TO SHAREHOLDERS
Whitecap delivered record financial and operating results in the second quarter of 2026, supported by continued execution across the asset base, strong commodity price realizations and ongoing cost reductions.
Financial performance was a quarterly record. Funds flow totaled $1.4 billion, or $1.11 per share and, after capital expenditures of $430 million, generated free funds flow of over $900 million.
Our operating netback increased to $43.84 per boe, reflecting continued operating efficiencies and strong price realizations. Operating costs have declined by approximately 13% to $11.88 per boe since the closing of the Veren transaction5, while realized pricing for crude oil and condensate averaged $127.82 per barrel during the quarter.
Second quarter production averaged 388,894 boe/d (61% liquids), exceeding our internal forecast by approximately 8,000 boe/d. The production outperformance was driven by asset level performance in the Duvernay at Kaybob and base production optimization initiatives in Central Alberta.
The strength of our operating performance and the continued momentum across our asset base have resulted in a second increase to our 2026 production guidance. We now expect annual production to average between 384,000 and 386,000 boe/d, an increase of 5,000 boe/d at the mid-point from our previous guidance range of 378,000 to 382,000 boe/d. Given the shorter cycle times and the strong results achieved to date, we expect 2026 capital expenditures to be at the high end of our previously announced $2.0 billion to $2.1 billion budget range.
Our continued focus on disciplined, per-share growth has generated meaningful value for shareholders. Over the past five years, production per share6 has increased by approximately 70%, which equates to a compound annual growth rate of 11%.
During the first six months of 2026, we reduced net debt by approximately $900 million to $2.5 billion, resulting in a net debt to annualized funds flow ratio1 of 0.5 times. This rapid deleveraging further strengthens our balance sheet and enhances our ability to sustainably return capital to shareholders while continuing to advance our highest-return development opportunities.
The combination of strong production, record funds flow, record free funds flow and meaningful debt reduction demonstrates the strength of our expanded asset base and the benefits of the Veren transaction being fully realized. We remain focused on safely and efficiently executing our development program, realizing further operational synergies and delivering sustainable growth in production and funds flow per share.
Second Quarter 2026 Highlights
· Record Funds Flow: Generated record quarterly funds flow of $1.4 billion or $1.11 per share. Our operating netback of $43.84 per boe was driven by strong realized oil and condensate prices and continued reductions in operating costs.
· Significant Free Funds Flow: Strong production performance, combined with disciplined management of controllable operating and capital costs, resulted in free funds flow of $925 million, or $0.76 per share1, during the second quarter of which $221 million of dividends were paid to shareholders.
· Production Outperformance: Production averaged 388,894 boe/d, representing an increase of 3% on a per share basis compared to the second quarter of 2025. Production was above internal expectations, driven by successful base production optimization, shorter cycle times and stronger than forecast performance from new wells.
· Pristine Balance Sheet: Reduced net debt to $2.5 billion, further enhancing our financial flexibility. At quarter end, Whitecap had approximately $1.7 billion available liquidity and a net debt to annualized funds flow ratio of 0.5 times.
OPERATIONS REVIEW
During the quarter, we spud 24 (24.0 net) Unconventional wells in the Montney and Duvernay and 23 (16.8 net) Conventional wells across Alberta and Saskatchewan. Following the end of spring breakup, we increased our active drilling program from six rigs to ten rigs in June.
Strong operational execution continued across our asset base, with development learnings and best practices being shared across teams and assets. This collaborative approach is improving execution, supporting stronger well economics and enhancing the future development potential of our portfolio.
Unconventional Highlights
Work on our Lator 04-13 Montney facility continues to progress with construction approximately 90% complete. Both new pad and current area production will be directed to the 04-13 facility upon commissioning and start up in the fourth quarter, supporting meaningful initial utilization of the 35,000 – 40,000 boe/d capacity.
Our third plug-and-perf ("P&P") pilot pad on our Gold Creek and Karr Montney assets will be spud in the coming months at Gold Creek. Collection and interpretation of diagnostic data on the first two P&P pilot pads at Karr is ongoing, and we are confident that, as one of the many well design inputs, the ability to select pad specific completion technology will further improve overall capital efficiency and risk-adjusted returns of our Gold Creek and Karr assets.
Duvernay production at Kaybob is now in the stated capacity range of 115,000 – 120,000 boe/d and we expect to maintain this production level for the balance of 2026. Capital efficiency improvements at Kaybob have led to lower costs and the deferral of activity into the second half of the year, further improving the operating free cash flow capabilities of the asset.
Conventional Highlights
Our Conventional assets are 80% liquids weighted and, with a low base decline rate of approximately 20%, the reinvestment rate is highly competitive with other Western Canadian long life oil weighted assets. Second quarter production results were strong and when combined with reduced drilling activity during spring breakup and elevated light oil prices, operating free cash flow was significant.
Our well-established and consolidated Conventional land positions also provide the ability to maximize productive capability during periods of planned and unplanned facility downtime. During the quarter, base production of our Central Alberta Conventional assets outperformed our expectations through optimization opportunities and the successful diversion of a portion of impacted production during a third-party turnaround.
The shared workflows and technical learnings across the business are also translating into improved capital efficiency and results on our Conventional assets. As an example, our Alberta Conventional Cardium, Charlie Lake and Glauconite assets have all experienced improved production results and economics after incorporating well design changes brought on by our development workflow. These changes are also being incorporated into our future inventory, ultimately improving the long-term sustainability of these assets.
OUTLOOK
Whitecap’s strong second quarter production performance, continued growth in free funds flow and the benefit of higher crude oil prices created a meaningful opportunity to accelerate debt repayment and further strengthen our financial flexibility. The strength of our balance sheet provides maximum optionality to enhance total shareholder returns as we execute our counter-cyclical strategy through commodity price cycles. Our long-term financial objective is to allocate capital towards our highest return opportunities that increase long-term free funds flow while maintaining a net debt to funds flow ratio of less than 1.0 times through the cycle.
The Canadian energy industry and specifically Whitecap, is well positioned to capture incremental market share as global demand for secure, reliable and responsibly produced energy continues to grow. Recent announcements supporting additional crude oil egress from Western Canada to North American and global markets are encouraging. As incremental heavy oil production is required to fill this additional capacity, demand for condensate used as diluent is also expected to increase.
Whitecap is strategically positioned to benefit from these developments. The Company is the fourth-largest condensate producer in Western Canada, with current production of approximately 60,000 bbl/d. In addition, approximately 70% of our 4,700 Unconventional drilling locations7 are liquids-rich, providing a significant inventory of opportunities to support future demand driven growth.
With a deep, high-quality inventory, a strong balance sheet, broad commodity exposure and a demonstrated track record of operational execution, Whitecap is well equipped to capitalize on improving market access, growing demand for Canadian energy and emerging opportunities across crude oil, condensate and natural gas.
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) and free funds flow per share are non-GAAP ratios. Refer to the Specified Financial Measures section in this press release for additional disclosure and assumptions.
2 Also referred to herein as "capital expenditures".
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 Whitecap acquired all of the issued and outstanding shares of Veren Inc. on May 12, 2025.
6 Production per share is the Company's total crude oil and condensate, natural gas liquids ("NGLs") 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.
7 Disclosure of drilling locations in this press release consists of proved, probable, and unbooked locations and their respective quantities on a gross and net basis as disclosed herein. Refer to Drilling Locations in this press release for additional disclosure.
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, July 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, 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.
