October 21, 2015
WHITECAP RESOURCES INC. CONFIRMS CREDIT FACILITY AT $1.2 BILLION, PROVIDES OPERATIONAL UPDATE AND INCREASED PRODUCTION GUIDANCE
CALGARY, ALBERTA - Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to confirm our credit facility has been maintained at the current $1.2 billion and would like to provide shareholders with an update on our successful capital execution thus far in 2015. Our third quarter operational results have once again exceeded expectations with average production over 1,800 boe/d (5%) above our forecast of 40,000 boe/d. This provides us with an opportunity to increase our average 2015 production guidance to 40,800 boe/d from the previous 40,100 boe/d.
Based on our mid-year interim reserves review and strong operational results to date, our lenders have agreed to maintain our credit facility at the current $1.2 billion despite the challenging commodity price environment. Our objective continues to be funding the dividend and capital required to grow production through internally generated cash flows without the use of a dividend reinvestment program (DRIP). This allows us to keep our debt levels flat to slightly decreasing in a low commodity price environment. We anticipate exiting 2015 with net debt of approximately $850 million which provides us with ample liquidity ($350 million unutilized) as we move into 2016.
In Q3/2015 Whitecap drilled a total of 47 (42.1 net) wells while spending approximately $51.0 million in development capital. Year to date we have drilled a total of 85 (77.8 net) wells with a 100% success rate. We continue to see improving capital efficiencies, shallower base production declines in our core areas and, in combination with our commitment to maintaining a strong balance sheet, we are now projecting a total payout ratio of 92% and a net debt to cash flow ratio of 1.7 times in 2015.