October 28, 2026
WHITECAP REPORTS STRONG THIRD QUARTER RESULTS, ANNOUNCES INCREASED 2026 GUIDANCE, DIVIDEND INCREASE AND 2027 BUDGET
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 nine months ended September 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 nine months ended September 30, 2026 which are available at sedarplus.ca and on our website at wcap.ca.
|
Financial ($ millions except for share amounts) |
Three months ended Sep. 30 |
Nine months ended Sep. 30 |
||
|
2026 |
2025 |
2026 |
2025 |
|
|
Petroleum and natural gas revenues |
2,411.5 |
1,660.3 |
7,086.9 |
3,967.8 |
|
Net income |
326.4 |
204.2 |
1,238.2 |
677.4 |
|
Basic ($/share) |
0.27 |
0.17 |
1.02 |
0.74 |
|
Diluted ($/share) |
0.27 |
0.17 |
1.01 |
0.73 |
|
Funds flow 1 |
1,173.1 |
896.6 |
3,553.0 |
2,055.7 |
|
Basic ($/share) 1 |
0.96 |
0.73 |
2.92 |
2.24 |
|
Diluted ($/share) 1 |
0.96 |
0.73 |
2.91 |
2.23 |
|
Dividends declared |
221.9 |
221.5 |
664.6 |
514.1 |
|
Per share |
0.18 |
0.18 |
0.55 |
0.55 |
|
Expenditures on property, plant and equipment 2 |
533.3 |
546.3 |
1,639.7 |
1,353.2 |
|
Free funds flow 1 |
639.8 |
350.3 |
1,913.3 |
702.5 |
|
Net debt 1 |
2,102.2 |
3,317.7 |
2,102.2 |
3,317.7 |
|
Operating |
|
|
|
|
|
Average daily production |
|
|
|
|
|
Crude oil and condensate (bbls/d) |
199,073 |
189,686 |
200,321 |
149,006 |
|
NGLs (bbls/d) |
38,179 |
37,733 |
39,142 |
28,243 |
|
Natural gas (Mcf/d) |
920,806 |
883,224 |
905,266 |
633,665 |
|
Total (boe/d) 3 |
390,720 |
374,623 |
390,341 |
282,860 |
|
Average realized price 1,4 |
|
|
|
|
|
Crude oil and condensate ($/bbl) |
113.89 |
84.34 |
111.31 |
85.78 |
|
NGLs ($/bbl) |
36.84 |
23.68 |
33.70 |
23.89 |
|
Natural gas ($/Mcf) |
2.32 |
1.31 |
2.59 |
1.70 |
|
Petroleum and natural gas revenues ($/boe) 1 |
67.09 |
48.17 |
66.50 |
51.38 |
|
Operating netback ($/boe) 1 |
|
|
|
|
|
Petroleum and natural gas revenues 1 |
67.09 |
48.17 |
66.50 |
51.38 |
|
Tariffs 1 |
(0.38) |
(0.21) |
(0.32) |
(0.30) |
|
Processing and other income 1 |
0.45 |
0.39 |
0.45 |
0.50 |
|
Marketing revenues 1 |
1.99 |
2.43 |
1.54 |
2.94 |
|
Petroleum and natural gas sales 1 |
69.15 |
50.78 |
68.17 |
54.52 |
|
Realized gain (loss) on commodity contracts 1 |
(3.24) |
1.38 |
(3.07) |
1.35 |
|
Royalties 1 |
(9.70) |
(5.88) |
(8.84) |
(7.07) |
|
Operating expenses 1 |
(10.22) |
(12.49) |
(11.37) |
(13.09) |
|
Transportation expenses 1 |
(3.76) |
(3.41) |
(3.61) |
(2.98) |
|
Marketing expenses 1 |
(1.97) |
(2.36) |
(1.52) |
(2.89) |
|
Operating netbacks |
40.26 |
28.02 |
39.76 |
29.84 |
|
Share information (millions) |
|
|
|
|
|
Common shares outstanding, end of period |
1,216.4 |
1,213.8 |
1,216.4 |
1,213.8 |
|
Weighted average basic shares outstanding |
1,216.1 |
1,220.5 |
1,215.0 |
918.8 |
|
Weighted average diluted shares outstanding |
1,222.5 |
1,225.7 |
1,220.5 |
923.1 |
MESSAGE TO SHAREHOLDERS
Whitecap's third quarter production results once again exceeded our expectations. Production averaged 390,720 boe/d (61% liquids) which was above our internal forecast, driven by strong base and new well performance at Gold Creek, new well performance at Kaybob and base production in our Conventional division. With quicker cycle times, we are executing our 2026 capital program ahead of schedule and, rather than slow activity into year end, we will maintain current activity levels through the fourth quarter. As a result, we are increasing our 2026 capital budget by approximately $100 million to approximately $2.2 billion and increasing our 2026 average production guidance for the third time this year to 392,000 boe/d (61% liquids), which equates to fourth quarter production of 395,000 – 400,000 boe/d. The incremental activity is focused on our highest return programs at Kaybob, Lator and our Saskatchewan light oil assets that is expected to carry additional momentum into 2027.
Strong operations coupled with elevated light oil and condensate prices resulted in funds flow of $1.2 billion ($0.96 per share) in the third quarter, an increase of 32% per share relative to the third quarter of 2025. After capital investments of $533 million, free funds flow was $640 million, bringing free funds flow to $1.9 billion ($1.57 per share1) through the first nine months of 2026.
Reflecting the strength of our business, our Board of Directors has approved an increase to our monthly dividend of approximately 1.5% to $0.0617 per share ($0.74 per share annually), effective with the November 2026 dividend payable in December 2026. The increase equates to approximately $13 million on an annual basis and follows substantial improvements to our cost structure and the overall growth of our business. Increasing returns to shareholders remains a priority for Whitecap.
Beyond our base dividend, we continue to prioritize the balance sheet. Through the first nine months of 2026, free funds flow of $1.9 billion funded $665 million of base dividends, with the remainder directed to debt reduction. As a result, net debt has decreased by approximately $1.3 billion since year end 2025 to $2.1 billion at the end of the third quarter, representing a net debt to annualized funds flow ratio1 of 0.4 times. Our balance sheet is in excellent condition with $1.7 billion of investment grade senior notes outstanding at a weighted average interest rate of 4.76% and an undrawn $2.5 billion credit facility. We will continue to prioritize the balance sheet through the remainder of 2026 and look for opportunities in 2027 to enhance total shareholder returns.
For 2027, our Board of Directors has approved a capital budget of $2.4 – $2.6 billion to drill 127 (127.0 net) Unconventional Montney and Duvernay wells and 205 (184.1 net) Conventional wells, delivering average production of 400,000 – 410,000 boe/d (60% liquids). On a per share basis5, the budget delivers approximately 3% annual production growth, or approximately 5% annual growth excluding planned major turnaround activity at Kaybob in the third quarter of 2027.
Highlights
· Production Outperformance: Third quarter average production of 390,720 boe/d included 237,252 bbl/d of crude oil, condensate and NGLs and 920,806 Mcf/d of natural gas, which was above our internal forecast as both base and new well production outperformed our expectations. Production per share increased 5% relative to the third quarter of 2025.
· Strong Funds Flow: Funds flow of $1.2 billion ($0.96 per share) increased 32% per share relative to the third quarter of 2025, and funds flow of $3.6 billion ($2.91 per share) in the first nine months of 2026 increased 73% (30% per share) relative to the first nine months of 2025. Third quarter operating expenses decreased to $10.22 per boe from $11.88 per boe in the second quarter, primarily due to one time favourable cost adjustments. Third quarter net income of $0.3 billion ($0.27 per share) includes a non-cash unrealized loss on commodity contracts of $0.3 billion due to the increase in forward prices during the quarter.
· Efficient Capital Program: Capital investments of $533 million generated free funds flow of $640 million during the quarter. We continued to realize efficiency improvements in executing our capital program, resulting in higher free funds flow. We have now generated $1.9 billion ($1.57 per share) of free funds flow through the first nine months of 2026.
· Dividend Increase: Monthly dividend increased approximately 1.5% to $0.0617 per share ($0.74 per share annually) effective with the November 2026 dividend payable in December 2026.
2027 BUDGET
Our 2027 capital budget of $2.4 – $2.6 billion is forecast to deliver average production of 400,000 – 410,000 boe/d (60% liquids). The program includes the drilling of 332 (311.1 net) wells, with approximately 75% of capital allocated to our Unconventional division and 25% to our Conventional division.
Our 2027 budget is forecast to grow average annual production per share5 by approximately 3% relative to 2026. The 2027 forecast includes a major turnaround at our 15-07 gas plant and a third-party processing facility at Kaybob in the third quarter, which is expected to reduce third quarter production by approximately 32,000 boe/d and annual average production by approximately 8,000 boe/d. Excluding the turnaround, annual production per share growth would be approximately 5%.
In 2027, we anticipate condensate growth of 10% – 15% relative to our base condensate production of 60,000 bbl/d. Condensate production drives the economics of our liquids rich Montney and Duvernay assets as it often trades at a premium to local light oil prices due to its required use as diluent to transport heavy oil production. Whitecap is well positioned to capture this incremental condensate demand growth and pricing opportunity in the future.
At US$80/bbl WTI, we forecast 2027 funds flow of approximately $4.1 billion, which generates free funds flow of approximately $1.6 billion after capital investments of $2.5 billion6. Our guidance does not include the impact of the Productivity Mega Deduction, which would increase 2027 free funds flow to approximately $2 billion, if enacted as proposed.
Unconventional Division
Our Unconventional division will invest approximately $1.9 billion in 2027 to drill 127 (127.0 net) wells, consisting of 77 (77.0 net) Montney wells and 50 (50.0 net) Duvernay wells. Unconventional production is forecast to average approximately 265,000 boe/d (51% liquids), representing growth of approximately 8% relative to 2026. Growth is led by the ramp up of our Lator 04-13 facility and Gold Creek, Karr and Kaybob growing into available infrastructure capacity.
During the third quarter, we completed construction of our Lator 04-13 battery and successfully commissioned the facility early in the fourth quarter, slightly ahead of schedule and within budget expectations. We have redirected existing area volumes and brought on our recently drilled five (5.0 net) well Montney pad through the facility, with throughput and runtimes meeting expectations.
Our 2027 planned activity levels at Lator will include a two-rig program to spud 22 (22.0 net) wells and bring on production 17 (17.0 net) wells. The ramp up to the 04-13 facility capacity of 35,000 – 40,000 boe/d is expected to take 12 – 18 months as we will look to incorporate learnings from our first development pads as well as the continued application of our broader development workflow on an ongoing basis.
Our Duvernay assets at Kaybob have been producing at the existing productive capacity of 120,000 boe/d since mid-year. During the third quarter, our technical teams identified numerous projects to increase productive capacity of the asset to approximately 130,000 boe/d in the near term and approximately 135,000 – 140,000 boe/d by the end of 2027. As part of our 2027 capital program, we plan to fill this capacity. Our Kaybob assets have delivered strong production results and coupled with improvements in operational execution are driving increased profitability.
Our inventory enhancement initiatives, such as wine racking configuration and our ongoing downspacing pilots, are further extending inventory life at Kaybob. Drilling operations on our two downspacing pilot pads are done, with completion operations now underway. With success of these enhancement initiatives, we have the potential to add two years of additional inventory in the heart of our Kaybob asset.
Conventional Division
Our Conventional division will invest approximately $0.6 billion in 2027 to drill 205 (184.1 net) wells in Alberta and Saskatchewan, with production forecast to average approximately 140,000 boe/d (79% liquids). Stronger than expected base production has been incorporated into our 2027 forecast, allowing us to moderate activity levels and extend the inventory life of these assets.
In the Peace River Arch area of Northern Alberta, our recent Charlie Lake results have continued to perform above our expectations and offset wells. We are carrying forward these initiatives into an expanded Charlie Lake drilling program of 10 (7.8 net) wells in 2027, incorporating updated drilling and completion design inputs that are expected to improve productivity and reduce well costs.
Our light oil weighted assets in the Bakken, Frobisher and Viking will see over 80% of our Saskatchewan drilling activity in 2027, spudding 141 (132.6 net) wells. Continuous improvement in operational execution and well performance along with inventory enhancement initiatives, such as drilling design, lateral placement and one-to-two-mile inventory consolidation, are improving the long term profitability of these assets.
OUTLOOK
Whitecap’s ongoing improvements in operational execution, lower cost structure and production growth are coming at a time when elevated light oil and condensate prices are further increasing our profitability. Beyond the current price environment, Canada is increasingly well positioned to grow its share of global energy supply. Additional pipeline egress is opening new markets for Western Canadian crude oil, and the federal government's recently announced Productivity Mega Deduction is expected to materially improve the competitiveness of new investment in the Canadian energy sector. At the same time, oil sands growth, LNG exports and power demand from data centres are expected to drive demand for each of Whitecap’s three core products: light oil, condensate and natural gas.
Whitecap has meaningful scale in all three of these products. We are the fifth largest oil and condensate producer in Canada, and over 90% of our oil and condensate production is exposed to light oil and condensate pricing, which has strengthened relative to WTI. As the fourth largest condensate producer in Canada, with approximately 60,000 bbl/d of current production, we are positioned to supply the diluent needed to transport growing heavy oil volumes. Approximately 70% of our 4,700 Montney and Duvernay drilling locations7 are liquids-rich, providing the inventory to support further growth.
We are also the fifth largest natural gas producer in Canada, with natural gas production forecast to approach 1 Bcf/d in 2027. We continue to diversify our natural gas markets. Approximately 30% of our third quarter natural gas revenue came from sales into U.S. markets, and beginning in 2028, approximately 5% of our natural gas production will be exposed to European TTF pricing. Longer term, Resthaven provides significant natural gas optionality, with over 1,000 undeveloped locations.
With deep inventory across all three products, available infrastructure capacity and a strong balance sheet, Whitecap has the flexibility to direct capital to the highest return opportunities as these markets develop.
Our capital allocation framework is designed to be counter-cyclical. In periods of elevated commodity prices, such as the current environment, we prioritize balance sheet strength while delivering strong production per share growth, positioning Whitecap to capture opportunities that may arise in the future through commodity price cycles. We expect to exit 2026 with net debt of less than $2.0 billion and will continue to be prudent and patient with respect to our unallocated funds flow. We will evaluate all opportunities to redeploy the excess funds flow in 2027 to enhance long term shareholder returns.
On behalf of our employees, management team and Board of Directors, we thank our shareholders for their continued support and confidence.
NOTES
1 Funds flow, funds flow basic ($/share), funds flow diluted ($/share) and net debt are capital management measures. Average realized price, annualized funds flow, net debt to funds flow ratio, net debt to annualized funds flow ratio and per boe disclosure figures are supplementary financial measures. Operating netback and free funds flow are non-GAAP financial measures. Operating netbacks ($/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", "capital investments" and "capital budget".
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 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.
6 Our 2027 funds flow and free funds flow forecast assumes commodity prices of US$80/bbl WTI and $2.00/GJ AECO and a $0.71 USD/CAD exchange rate.
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, October 29, 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.
