August 31, 2022


CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to announce that it has successfully closed the previously announced acquisition of XTO Energy Canada (the "Acquisition").

The closing of the Acquisition adds production1 of approximately 32,000 boe/d (30% condensate and NGLs) and over 2,000 top tier Montney and Duvernay drilling locations2 that will provide decades of long-term sustainable production and free funds flow growth. The Acquisition also includes 100% ownership of the 15-07 gas processing facility which is a shallow cut facility with 165 mmcf/d of total capacity. The facility currently processes the acquired Duvernay volumes along with third-party volumes from area producers.

Whitecap is also pleased to announce that in conjunction with completion of the Acquisition, Whitecap has closed the issuance of a $705 million 4-year term loan and increased its existing credit facility by $395 million which results in total credit capacity of $3.1 billion. The term loan is repayable at any time with no penalty and uses the same pricing grid as our existing credit facility. On current strip pricing, Whitecap is expected to reach its net debt3 milestone of $1.8 billion by year end, which would represent a debt to EBITDA ratio4 of 0.7 times and leave the company with $1.3 billion of unused credit capacity. 

With the Acquisition now closed, along with continued outperformance on our base production, we are increasing our 2022 average production guidance by 4,000 boe/d to 142,000 – 144,000 boe/d and our capital spending guidance by $60 million to $670 - $690 million. The increased capital program will allow us to retain our current field services through the winter drilling season to maintain our strong capital efficiencies for the balance of 2022 and into 2023. There is no change to our 2023 preliminary plans for production to average 168,000 – 174,000 boe/d on capital spending of $900 million to $1.1 billion and we plan to release our formal 2023 budget on September 28, 2022.

Integration of the acquired assets is well underway and expected to be seamless given Whitecap’s technical expertise in the area and our ability to effectively acquire, integrate and optimize our historical acquisitions. As our portfolio of opportunities has increased significantly, we are advancing initiatives to achieve our net debt milestones and thereby further advance our return of capital strategy sooner than currently forecasted.

We are excited about the future potential of our consolidated portfolio and look forward to the achievement of our objectives over the next several months.

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   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.
2   Refer to the Drilling Locations section in this press release for additional disclosure and assumptions.
3    Net debt is a capital management measure. Refer to the Specified Financial Measures section in this press release for additional disclosure and assumptions.
4   Debt to EBITDA ratio is a specified financial measure that is calculated in accordance with the financial covenants in our credit agreements.

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

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