April 28, 2022


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, 2022.

Selected financial and operating information is outlined below and should be read with Whitecap’s unaudited interim financial statements and related management’s discussion and analysis for the three months ended March 31, 2022 which are available at www.sedar.com and on our website at www.wcap.ca.




Three months ended March 31

Financial ($000s except per share amounts)





Petroleum and natural gas revenues





Net income





    Basic ($/share)





    Diluted ($/share)





Funds flow 1





    Basic ($/share) 1





    Diluted ($/share) 1





Dividends paid or declared





    Per share





Expenditures on property, plant and equipment 2





Total payout ratio (%) 1





Net debt 1










Average daily production





    Crude oil (bbls/d) 3





    NGLs (bbls/d) 3





    Natural gas (Mcf/d) 3





 Total (boe/d) 3, 4





Average realized price 5





    Crude oil ($/bbl) 3





    NGLs ($/bbl) 3





    Natural gas ($/Mcf) 3





Petroleum and natural gas revenues ($/boe) 3





Operating Netbacks 1 ($/boe)





    Petroleum and natural gas revenues 3





    Tariffs 3





    Processing & other income 3





    Marketing revenue 3





    Petroleum and natural gas sales 3





    Realized loss on commodity contracts 3





    Royalties 3





    Operating expenses 3





    Transportation expenses 3





    Marketing expenses 3





    Operating netbacks 1





Share information (000s)





Common shares outstanding, end of period





Weighted average basic shares outstanding





Weighted average diluted shares outstanding






Whitecap’s operational momentum continued in the first quarter of 2022 with record average production of 132,691 boe/d (74% liquids) which exceeded our expectation of 131,000 boe/d. Production increased 38% compared to the first quarter of 2021 and increased 10% compared to the fourth quarter of 2022. We had a very active first quarter drilling program peaking at twelve rigs drilling 71 (63.4 net) wells across our four business units and invested $212 million of development capital expenditures in the quarter.

Strong operational execution and continued strength in commodity prices resulted in funds flow of $506 million, or $0.80 per share, up 122% per share compared to the first quarter of 2021 and 45% per share relative to the fourth quarter of 2021. Free funds flow 6 of $294 million was up from $69 million in the first quarter of 2021, resulting in a 253% increase per share. The significant free funds flow generated allowed us to enhance returns to shareholders through an accretive acquisition and a base dividend increase of 33% in the first quarter. We also repurchased for cancellation 10.0 million common shares subsequent to the quarter end under our normal course issuer bid (“NCIB”), all previously announced.

In addition to total capital investments of $392 million and dividends to shareholders of $47 million in the first quarter, Whitecap was still able to strengthen its balance sheet by reducing net debt to $1.1 billion from $1.2 billion in the fourth quarter of 2021. The balance sheet remains in a strong, defensible position with total debt capacity of $2.0 billion and a debt to EBITDA ratio 7 of 0.7 times.

We highlight the following first quarter 2022 financial and operating results:

·      Record Production. Average production of 132,691 boe/d (74% liquids) was up from 120,020 boe/d (75% liquids) in the fourth quarter of 2021 and 95,828 boe/d (78% liquids) in the first quarter of 2021. Accretive acquisitions, along with organic drilling success, contributed to the per share growth of 14% compared to the first quarter of 2021 and 11% compared to the fourth quarter of 2021.

·      Strong Operating Netback Drives Funds Flow. First quarter operating netback 1 of $45.25/boe increased 73% from the first quarter of 2021 driven by continued strength in crude oil and natural gas prices during the quarter. Our strong netbacks, when combined with the accretive acquisitions completed over the past 18 months and the strategic use of our NCIB, resulted in a record funds flow of $506 million or $0.80 per share.

·      Return of Capital Priority. Whitecap returned $47 million in dividends to shareholders during the first quarter or $0.075 per share. As previously announced, our monthly dividend was increased by 33% to $0.03 per share with the March dividend, payable in April, representing an annual increase of $56 million and, subsequent to the first quarter, we repurchased 10.0 million common shares for $103.4 million under our NCIB. We have 26.1 million shares remaining on our current NCIB and intend to renew the NCIB for another year when it expires on May 20, 2022.

·      Balance Sheet Strength. Whitecap retains significant financial flexibility with quarter end net debt of $1.1 billion on total credit capacity of $2.0 billion. Quarter end debt to EBITDA ratio 7 was 0.7x and EBITDA to interest expense ratio 7 was 32.1x, well within our bank covenants of not greater than 4.0x and not less than 3.5x respectively.


Whitecap’s operational performance through the winter drilling program was exceptional as the optimization and development enhancements applied to the acquired assets have continued to generate positive results. Including the 44 (34.2 net) wells drilled in the fourth quarter, we have drilled a total of 115 (97.6 net) wells through the winter season up to the end of the first quarter of 2022 with the following highlights:

·         Kakwa Montney. Our three well 14-13 pad was tied into permanent facilities during the first quarter with the wells quickly cleaning up and production stabilizing. Over the first 90 days on production, the three wells have averaged 1,831 boe/d (36% condensate and NGLs) per well, which is more than 75% higher than our budget expectations of 1,026 boe/d (34% condensate and NGLs). We are currently drilling the final well of a four-well pad at Kakwa with the wells expected to be brought on production during the third quarter. A total of nine (6.0 net) wells are expected to be brought on production at Kakwa in the second half of 2022.

·         Central Alberta Glauconite and Cardium. Whitecap closed the acquisition of TimberRock Energy Corp. at the start of the first quarter and drilled a total of four (3.8 net) Glauconite wells during the quarter. Three of the wells have been on production for over 30 days, averaging approximately 1,138 boe/d (74% oil and NGLs) per well, which is above our budget expectations of 627 boe/d (56% oil and NGLs) over the first 30 days on production. We have also executed on multiple optimization opportunities on the acquired assets, including well reactivations and gathering system optimizations which increase production rates as well as the percentage of volumes that flow through Whitecap owned facilities. Subsequent to the quarter, the Company has secured operatorship of Pembina Cardium Unit No. 11 (55.2% working interest) and has partner-approved plans to commence development of the unit utilizing longer laterals and optimized waterflood technology and configurations which have been proven in our nearby Cardium developments.

·         Southeast Saskatchewan Conventional. The Company drilled a total of 18 (17.7 net) Mississippian conventional wells over the winter drilling program, achieving strong results on both legacy and acquired acreage. The average production rate over the first 30 days of 223 bbls/d of oil per well is 45% above our budget expectations, and we have 289 (258.4 net) locations of similar quality remaining in inventory.


Whitecap is pleased to announce that Chandra A. Henry will stand for election as an independent director to our Board of Directors at the upcoming Annual and Special Meeting of the Shareholders (“Annual Meeting”) on May 18, 2022. Ms. Henry has more than 20 years of progressive experience in finance, treasury, risk, taxation and operations within the financial services industry and is currently the Chief Financial Officer of Longbow Capital Inc., a private equity firm investing in the North American energy markets. Upon being elected, Ms. Henry will serve as a member of the Audit Committee as well as the Sustainability & Advocacy Committee.

Ms. Henry has a Bachelor of Commerce degree, has earned the Chartered Professional Accountant (CPA, CA), Chartered Financial Analyst (CFA) and Institute of Corporate Directors (ICD.D) designations, and is a Fundamentals of Sustainability Accounting (FSA) level 2 candidate. Ms. Henry currently sits on the board of directors of two energy companies.

Whitecap is also announcing that Ms. Heather J. Culbert is retiring from our Board of Directors and is not seeking re-election at the upcoming Annual Meeting. Our Board of Directors and management team would like to thank Heather for her contributions and guidance as a director since 2017.


Whitecap has had an excellent start to 2022 and is well positioned to maintain operational momentum through the remainder of the year. We remain optimistic that commodity prices will continue to be strong and our team and our assets will be able to provide substantial returns on capital we deploy. As we continue to generate record funds flow, we anticipate achieving our near-term target net debt of approximately $800 million by the end of the second quarter of 2022 providing us with significant financial flexibility to increase shareholder returns.

Market conditions have improved dramatically since the release of our initial 2022 budget in October 2021 with 2022 WTI strip prices increasing by approximately US$25/bbl and 2022 AECO strip prices increasing over C$2.00/GJ. We now forecast 2022 funds flow of $2.2 billion and discretionary funds flow (after capital and dividends) of $1.4 billion at current strip prices.

So far in 2022, our operations have been impacted by cost inflation, labour shortages and supply constraints from our service providers, and we expect these pressures will continue through the balance of the year. As a result of our strong operational success, we have offset the impact of these challenges through the first four months of 2022 and our annual production guidance of 130,000 - 132,000 boe/d and capital expenditure budget of $510 - $530 million remains unchanged at this time. We will continue to actively monitor inflationary pressures and supply chain logistical challenges and their impact on our business to assess our profitability and sustainability as we make capital allocation decisions over the remainder of the year and into 2023.

On behalf of our employees, management team and Board of Directors, we would like to thank our shareholders for their support and look forward to updating you on our progress throughout the year.


Whitecap has scheduled a conference call and webcast to begin promptly at 9:00 am MT (11:00 am ET) on Thursday, April 28, 2022.

The conference call dial-in number is: 1-888-390-0605 or (587) 880-2175 or (416) 764-8609

A live audio webcast of the conference call will be accessible on Whitecap's website at www.wcap.ca by selecting "Investors", then "Presentations & Events". Shortly after the live webcast, an archived version will be available.

For further information:
Grant Fagerheim, President & CEO
Thanh Kang, Senior Vice President & CFO

Whitecap Resources Inc.
3800, 525 – 8th Avenue SW
Calgary, AB T2P 1G1
(403) 266-0767

1    Operating Netback is a non-GAAP financial measure and operating netbacks ($/boe) is a non-GAAP ratio. Total payout ratio is a supplementary financial measure. Funds flow, funds flow basic ($/share), funds flow diluted ($/share) and net debt are capital management measures. Refer to Specified Financial Measures in this press release for additional disclosure and assumptions.
2   Also referred to herein as “capital expenditures”.
3   Supplementary financial measure. Refer to “Supplementary Financial Measures” section of the Company’s MD&A for the three months ended March 31, 2022, which is incorporated herein by reference, and available on SEDAR at www.sedar.com.
4    Disclosure of production on a per boe basis in this press release consists of the constituent product types and their respective quantities disclosed in this table. Refer to Barrel of Oil Equivalency and Production, Initial Production Rates & Product Type Information in this press release for additional disclosure.
5    Prior to the impact of risk management activities and tariffs.
6    Free funds flow is a non-GAAP financial measure and free funds flow per share is a non-GAAP ratio. Refer to Specified Financial Measures in this press release for additional disclosure and assumptions.
7    Debt to EBITDA ratio and EBITDA to interest expense ratio are specified financial measures that are calculated in accordance with the financial covenants in our credit agreement.

Refer to full press release for forward-looking statements and advisories.

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