March 3, 2015
WHITECAP RESOURCES INC. ANNOUNCES INCREASE TO CREDIT FACILITIES AND PROVIDES OPERATIONAL UPDATE
CALGARY, ALBERTA - Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to announce that based on the review of our independent 2014 year end reserves report, our lenders have agreed to increase Whitecapâ€™s credit facilities by 20% to $1.2 billion from the previous $1.0 billion. The increase is a result of Whitecapâ€™s strong drilling results enhanced by the accretive acquisitions completed in 2014, which resulted in significant reserves and production growth which more than offset the recent collapse in commodity prices. The increase in our credit facilities to $1.2 billion, although not required to execute our 2015 capital program, provides us with greater financial flexibility in this low commodity price environment. The next annual review by our lenders is scheduled for April 30, 2016.
Whitecapâ€™s objective, irrespective of commodity prices, is to provide shareholders with per share growth and sustainable dividends from our internally generated cash flow, without the use of a dividend reinvestment plan (DRIP). Our total payout ratio for 2015 is estimated to be 95% and we anticipate maintaining a strong balance sheet with an estimated 2015 debt to cash flow ratio of 2.0x1.
We completed our first quarter drilling program in late February, drilling a total of 32 (29.9 net) wells. Operational results in each of our core areas continue to be very strong with production for the month of February averaging 39,000 boe/d based on field estimates, 6% above our initial projections. We have elected to keep our annual production guidance of 36,000 boe/d for 2015 unchanged at this time and will review it as the year progresses.