CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to announce that it has closed all three previously announced dispositions of certain non-strategic assets for aggregate consideration of $419 million, including $394 million of cash, prior to closing adjustments, and producing assets that consolidate the working interest in one of our core assets.
Proceeds from the dispositions have been used to reduce net debt1 to $1.5 billion which accelerates achieving our net debt target of $1.3 billion to mid-2023, based on current strip prices2. Our plan is to return 75% of free funds flow to our shareholders, which includes our targeted $0.73 per share annual base dividend, once this $1.3 billion net debt milestone is achieved. The remaining 25% of free funds flow will be used to continue to reduce debt and strengthen our balance sheet.
We have successfully monetized these non-strategic assets at strong disposition metrics and look forward to demonstrating strong operational performance on our core assets in 2023. We expect to grow 2023 annual production to 160,000 – 162,000 boe/d3 from our 2022 annual production of 144,000 boe/d (13% production per share growth1) on capital expenditures4 of $900 - $950 million.
We will be releasing our fourth quarter and year end 2022 results after market close on Wednesday, February 22, 2023 and have scheduled a conference call and webcast to begin promptly at 9:00 am MT (11:00 am ET) on Thursday, February 23, 2023.
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 Shortly after the live webcast, an archived version will be available.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
1 Net debt is a capital management measure. Production per share and production per share growth are supplementary financial measures. Refer to the Specified Financial Measures section in this press release for additional disclosures.
2 See Note Regarding Forward-Looking Statements for underlying commodity price and exchange rate assumptions.
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 and Product Type Information in this press release for additional disclosure.
4 Referred to as "Expenditures on property, plant and equipment" in our financial statements.
Refer to full press release for forward-looking statements and advisories.