News Releases

WHITECAP RESOURCES INC. DELIVERS STRONG THIRD QUARTER PERFORMANCE, RAISES 2025 PRODUCTION OUTLOOK AND SETS 2026 BUDGET

CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to report its operating and unaudited financial results for the three and nine months ended September 30, 2025.

Selected financial and operating information is outlined below and should be read with Whitecap’s unaudited interim consolidated financial statements and related management’s discussion and analysis for the three and nine months ended September 30, 2025 which are available at sedarplus.ca and on our website at wcap.ca.

Financial ($ millions except for share amounts)	Three Months ended Sep. 30		Nine Months ended Sep. 30
	2025	2024	2025	2024
Petroleum and natural gas revenues	1,660.3	890.9	3,967.8	2,739.6
Net income	204.2	274.2	677.4	578.5
Basic ($/share)	0.17	0.46	0.74	0.97
Diluted ($/share)	0.17	0.46	0.73	0.96
Funds flow 1	896.6	409.0	2,055.7	1,219.4
Basic ($/share) 1	0.73	0.69	2.24	2.04
Diluted ($/share) 1	0.73	0.68	2.23	2.03
Dividends declared	221.5	107.9	514.1	326.2
Per share	0.18	0.18	0.55	0.55
Expenditures on property, plant and equipment 2	546.3	272.7	1,353.2	869.7
Free funds flow 1	350.3	136.3	702.5	349.7
Net debt 1	3,317.7	1,361.8	3,317.7	1,361.8
Operating
Average daily production
Crude oil (bbls/d)	179,918	92,335	142,240	91,604
NGLs (bbls/d)	47,501	20,578	35,009	20,228
Natural gas (Mcf/d)	883,224	362,332	633,665	369,551
Total (boe/d) 3	374,623	173,302	282,860	173,424
Average realized price 1,4
Crude oil ($/bbl)	84.27	94.29	85.76	95.23
NGLs ($/bbl)	36.43	34.02	35.92	34.55
Natural gas ($/Mcf)	1.31	0.76	1.70	1.56
Petroleum and natural gas revenues ($/boe) 1	48.17	55.88	51.38	57.65
Operating netback ($/boe) 1
Petroleum and natural gas revenues1	48.17	55.88	51.38	57.65
Tariffs 1	(0.21)	(0.43)	(0.30)	(0.43)
Processing & other income 1	0.39	0.67	0.50	0.72
Marketing revenues 1	2.43	3.79	2.94	3.87
Petroleum and natural gas sales 1	50.78	59.91	54.52	61.81
Realized gain on commodity contracts 1	1.38	0.93	1.35	0.53
Royalties 1	(5.88)	(9.01)	(7.07)	(9.51)
Operating expenses 1	(12.49)	(13.38)	(13.09)	(13.71)
Transportation expenses 1	(3.41)	(2.10)	(2.98)	(2.09)
Marketing expenses 1	(2.36)	(3.76)	(2.89)	(3.84)
Operating netbacks	28.02	32.59	29.84	33.19
Share information (millions)
Common shares outstanding, end of period	1,213.8	588.0	1,213.8	588.0
Weighted average basic shares outstanding	1,220.5	595.2	918.8	597.3
Weighted average diluted shares outstanding	1,225.7	599.2	923.1	600.7

MESSAGE TO SHAREHOLDERS

Since completing the strategic combination with Veren Inc. ("Veren") on May 12, 2025, the Company has executed exceptionally well across all areas of the business. Our teams have focused on seamless integration, consistent execution and the adoption of best practices across our expanded asset base. These efforts are already driving meaningful value for shareholders.

In our first full quarter following the transaction, we delivered outstanding operating and financial results, building on the strong momentum achieved year to date.

Average third quarter production was 374,623 boe/d which exceeded our internal expectations, including 227,419 bbls/d of oil, condensate and NGLs, and 883,224 mcf/d of natural gas. This outperformance reflects exceptional operational execution, with teams accelerating production additions and achieving sustained efficiency gains.

In a remarkably short period, the Company has captured operational synergies well ahead of schedule. Third quarter operating costs averaged $12.49/boe, an 8% improvement compared to the prior quarter, underscoring the benefits of streamlined workflows, optimized production practices and enhanced infrastructure utilization. Progress on capital synergies has also been strong, driven by procurement efficiencies and rig line optimization.

Supported by robust operational performance and early synergy realization, the Company generated funds flow of $897 million ($0.73 per share) in the third quarter. With disciplined capital investments of $546 million, this resulted in $350 million of free funds flow, demonstrating the strength of our asset base and our commitment to efficient capital allocation.

As a result of year to date production outperformance, we are increasing 2025 full year average production guidance to 305,000 boe/d which is above the high end of our previous range of 295,000 – 300,000 boe/d. The updated production guidance reflects fourth quarter production of approximately 370,000 boe/d (61% liquids). Our 2025 capital spending guidance of $2.0 billion remains unchanged.

At the end of the quarter, net debt was $3.3 billion, representing a 1.0 times net debt to annualized funds flow ratio¹ and provides the Company with $1.6 billion of available liquidity. Our financial position remains a cornerstone of the Company’s long-term value creation strategy and positions us well for sustained success through 2026 and beyond. 

For 2026, our Board of Directors has approved a capital budget of $2.0 – $2.1 billion, targeting average annual production of 370,000 – 375,000 boe/d (60% liquids) and a fourth quarter average production rate exceeding 380,000 boe/d. The 2026 capital budget reflects enhanced operational execution, disciplined asset allocation, moderate production growth and realized synergies.

The Company has made significant progress integrating assets and personnel. Embedded in our 2026 forecast are $300 million in annual capital, operating and corporate synergies which is 40% higher than our original estimate of $210 million at the time we announced the Veren combination.

OPERATIONAL UPDATES AND 2026 BUDGET

Unconventional

Operational performance on our unconventional assets was strong during the third quarter as we transitioned from integration to optimizing our expanded asset base. Initial optimization initiatives were identified, executed and, along with improvements to drilling and completion performance, led to compressed cycle times and capital efficiency gains. Together, these improvements are driving sustained value creation across our assets.

Approximately 75% of our 2026 capital program is directed towards the unconventional division, building directly on this momentum. The application of our unconventional workflow has resulted in measurable improvements in drilling and completion efficiency, well design and operating practices across our entire unconventional asset base. The program features a steady seven rig drilling program across our Duvernay and Montney assets. 2026 will be highlighted by our first development drilling at Lator in advance of the 04-13 facility startup.

Duvernay

At Kaybob, Duvernay production benefited from faster drilling times and more effective completion operations during the quarter. By leveraging enhanced workflows and consistent rig utilization, our operations team improved metres/day drilling performance by approximately 20% year-over-year and achieved a new pacesetter result of approximately 600 metres/day on a recent pad. Refinements to completion parameters, including perforation cluster design, pumping rates and an updated wellbore casing design, have improved average completion time by approximately 8% across the asset.

We reached the debottlenecked operating capacity of approximately 42,000 boe/d at our 15-07 gas processing facility at Kaybob in the third quarter, a 16% increase from prior operating capacity. This expansion has lowered per unit operating costs and enhanced the profitability of our Duvernay asset. Through these targeted debottlenecking projects and the commissioning of a new connection to a nearby third party processing facility, we are optimizing area throughput, resulting in a projected 40% increase in total processing capacity compared to our original expectations. These strategic initiatives support continued production growth, with area capacity expected to exceed 50,000 boe/d by the third quarter of 2026.

In 2026, approximately 45% of our unconventional capital program will be directed toward the Duvernay. We plan to drill 45 (45.0 net) wells with a three-rig program and bring on production 55 (52.5 net) wells from our 2025 and 2026 programs at Kaybob. Of the 2026 pads, approximately half will utilize a wine rack development design, and our program will focus on the development of our core assets to utilize expanded infrastructure capacity in the area. The 2026 program also includes $55 million of targeted infrastructure spending to modestly expand, debottleneck and connect existing infrastructure. Following these efforts, total production capacity in the Kaybob region will be approximately 115,000 – 120,000 boe/d in the second half of 2026 which is expected to be operating at capacity in the second half of 2027. 

Montney

Our combined Montney assets also exceeded expectations, with gains coming from the optimization of our base production along with strong performance from new wells.

At Gold Creek and Karr, Montney volumes averaged 4,000 boe/d above forecast in the third quarter, driven by strong base production performance following optimization of gas lift systems, gathering infrastructure and other best operational practices. Per-well recoveries from recently developed lands remain consistent with our initial reservoir assessments, reinforcing the long-term potential of these assets. In the fourth quarter, we commenced drilling on the first of two Karr pads to pilot a plug-and-perforation ("P&P") completion design. These two pads will include 7 (7.0 net) Montney wells and results from this pilot will inform future well designs as we continue to enhance risk-adjusted returns.

At Musreau, drilling operations on our most recent 6-well (6.0 net) pad achieved a 20% decrease in costs as a result of improved drilling performance compared to the first sixteen wells in the area. Performance gains were achieved through drilling design optimization, including refinements to pad layout, landing depth and casing design. We are now applying these learnings to our next 3-well (3.0 net) pad at Musreau and another 3-well (3.0 net) pad on the eastern portion of our Lator acreage, both of which commenced drilling operations in the fourth quarter of 2025.

Our 2026 Montney program will see the deployment of the remaining 55% of our unconventional capital to drill 53 (53.0 net) wells with a four-rig program and bring on production 74 (74.0 net) operated wells from our 2025 and 2026 programs.

At Gold Creek and Karr, two of our four Montney rigs will target development in well-understood areas with established infrastructure, focusing on consistent execution of an optimized drilling and completion design. In 2026, we plan to drill 29 (29.0 net) wells and bring 48 (48.0 net) wells on production. As we advance toward piloting P&P, we will continue to pursue opportunities to enhance capital efficiency by reducing capital costs and implementing disciplined controls to evaluate both technical and commercial performance. The first two P&P pilot pads at Karr are expected to come on production in the first half of 2026, followed by a P&P pilot pad at Gold Creek drilled in the second half of 2026 after a detailed technical assessment. With existing infrastructure capacity at both Gold Creek and Karr supporting future growth, only minimal infrastructure investment is planned for 2026.

In 2026, we plan to spud 24 (24.0 net) wells and bring on production 26 (26.0 net) wells in our Smoky region, which is comprised of Kakwa, Lator, Musreau and Resthaven. The area is characterized by varying levels of development maturity, with our Kakwa and Musreau assets largely de-risked and near-term efforts focused on operational execution and maximizing existing infrastructure capacity. Our Lator asset will advance to development mode in 2026, while our Resthaven asset will receive capital for a two-well (2.0 net) delineation program.

We plan to drill 11 (11.0 net) wells at Musreau in 2026 and allocate approximately $5 million to enhance gas lift capabilities at our 05-09 facility in the second half of 2026, supporting further optimization of the strong condensate volumes being realized from this asset. Our 2026 development program will continue to leverage multi-bench development and employ controlled drawdown practices, both of which have contributed to the strong results observed to date.

At Lator, we plan to allocate approximately $180 million of capital in 2026, including $60 million towards supporting infrastructure (water disposal and gathering lines) to enable the ramp-up of this asset. We plan to drill 11 (11.0 net) wells in 2026. Following a successful engineering, design and permitting process, construction on the 04-13 Lator facility has been progressing ahead of schedule and within budgeted capital expectations. As a result, we now expect the facility to commence production in the fourth quarter of 2026, advanced from the prior target of late 2026 to early 2027. Production is expected to ramp up to the designed capacity of 35,000 – 40,000 boe/d (40% – 50% liquids) throughout 2027 at a measured pace, allowing for continued optimization of development plans where warranted.

Conventional

Our conventional portfolio continued to deliver strong, repeatable performance in the third quarter, with production meeting or exceeding internal expectations. The conventional division moved quickly to integrate and enhance our expanded asset base in the second half of 2025, realizing early efficiency gains in optimizing fragmented rig lines to enhance the continuity of our existing operations, along with improved service rig utilization across Saskatchewan field operations.

Our 2026 conventional drilling program will focus on plays with short cycle times, quick payouts and high netbacks to further support our low decline, stabilizing, light oil asset base. We plan to drill 156 (133.6 net) wells including the Cardium, Charlie Lake and Glauconite in Alberta, Atlas, Success and Viking in West Saskatchewan, and Bakken and Frobisher in East Saskatchewan. The short cycle nature of our conventional portfolio provides for significant flexibility to alter our capital program if commodity prices warrant. We continue to have strong confidence in the consistency and operational excellence across our conventional portfolio.

Saskatchewan

Our East Saskatchewan Frobisher wells continue to outperform expectations, with our 2025 program achieving an average IP90³ rate 40% above forecast. Strong results have been supported by improved well design and drilling performance, including the addition of lateral legs to maximize reservoir exposure executed in a highly capital-efficient manner.

We advanced our open-hole multi-lateral ("OHML") program at Viewfield during the quarter, bringing 6 (3.5 net) Bakken wells on production, including a 3.0-mile eight leg pilot well completed late in the quarter. This well, which set a new Saskatchewan record for the longest lateral leg drilled at over 6,400 metres, also represented the longest total lateral length on a single well in Saskatchewan at over 34,600 metres. Based on the success of these recent wells, we are assessing the further application of extended laterals to maximize reservoir contact and optimize our drilling inventory in the play. This is another example of how we continue to drive advancement initiatives to enhance and upgrade our portfolio of high quality, light oil focused opportunities.

In 2026, we plan to drill 79 (66.0 net) wells in East Saskatchewan focused on the Bakken and Frobisher. At Viewfield, we will continue to pursue capital efficiency enhancements through our OHML Bakken program, pushing lateral length where appropriate to maximize the economics. As part of our ongoing technical review, we are evaluating our OHML and multi-stage frac Bakken locations in inventory to determine the optimal development program.

Our 2026 Frobisher drilling program will look to carry momentum from strong 2024 and 2025 programs where results have consistently exceeded expectations and capital efficiency has improved through drilling multi-leg wells. We plan to drill triple leg wells on 15 (13.0 net) of our planned 49 (44.6 net) Frobisher locations, where the economics of certain locations are vastly improved due to drilling efficiencies and available royalty holidays. In aggregate, we added over 1,500 (1,350 net) Bakken and Frobisher locations⁵ to our portfolio in 2025, and our technical team is working to enhance this inventory through recent advancements in drilling design and execution.

In West Saskatchewan, we plan to drill 47 (44.7 net) wells primarily targeting the Atlas, Success and Viking. We plan to utilize one rig across both our Viking and Southwest Saskatchewan assets during 2026, with our focus being on improving the efficiency and long-term sustainability of the assets and the maximization of free funds flow. Recent capital efficiency enhancements include well design optimizations, frac stage spacing to reduce completion costs and the continued use of extended reach horizontal wells.

Alberta

Our 2026 Alberta conventional activity is focused on the Cardium at both Wapiti and West Pembina and the Glauconite at Westward Ho. At Wapiti, we plan to drill 4 (4.0 net) wells as a follow up to our successful 2025 program, including a three well pad in the Northwest portion of our acreage that will be drilled with 2-mile laterals. This pad will offset our 09-08 three well pad drilled in 2025 where updates to our completion design yielded strong results and improvements in profitability, aided by shared learnings from our unconventional workflow

Our 2026 Glauconite program includes 10 (8.7 net) wells at Westward Ho where strong results and improved access to infrastructure has aided significant growth in this asset since our first wells were drilled in 2021. All ten wells planned for 2026 will utilize a monobore drilling design which has reduced costs and improved the profitability of this asset. Our team has also started incorporating the unconventional workflow into the Glauconite program, creating opportunities for improved completions design to further increase area level profitability.

OUTLOOK

Our business outlook remains strong, underpinned by the synergies we have realized and ongoing improvements to our profitability. We continue to take a counter-cyclical approach to capital allocation, prioritizing share repurchases to enhance per share growth while placing less emphasis on expanding organic production in a lower pricing environment. These repurchases provide an additional return of capital beyond our annual base dividend of $0.73 per share, contributing to a more efficient capital structure and a lower payout ratio. In a higher commodity price environment, our strong inventory depth and commodity optionality position us to achieve measured growth while continuing to strengthen our balance sheet for long-term flexibility and supporting sustained per share growth.

Balance sheet strength remains the cornerstone of our value creation strategy, ensuring we are well positioned to maintain financial resilience and capitalize on opportunities as they arise.

With a deep and diversified portfolio of high-return drilling inventory across light oil, liquids-rich and natural gas plays, we are well positioned to deliver sustainable value and robust returns for decades to come.

On behalf of our employees, management team and Board of Directors, we thank our shareholders for their continued trust and support.

NOTES
¹    Funds flow, funds flow basic ($/share), funds flow diluted ($/share), annualized funds flow, and net debt are capital management measures. Average realized price, net debt to annualized funds flow ratio, and per boe disclosure figures are supplementary financial measures. Operating netback and free funds flow are non-GAAP financial measures. Operating netbacks ($/boe) is a non-GAAP ratio. Refer to the Specified Financial Measures section in this press release for additional disclosure and assumptions.
²   Also referred to herein as "capital expenditure", "capital spending", "capital investment" and "capital budget".
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, Initial Production Rates and Product Type Information in this press release for additional disclosure.
⁴   Prior to the impact of risk management activities and tariffs.
⁵   Disclosure of drilling locations in this press release consists of proved, probable, and unbooked locations and their respective quantities on a gross and net basis as disclosed herein. Refer to Drilling Locations in this press release for additional disclosure.

CONFERENCE CALL AND WEBCAST

Whitecap has scheduled a conference call and webcast to begin promptly at 9:00 am MT (11:00 am ET) on Thursday, October 23, 2025.

The conference call dial-in number is: 1-888-510-2154 or (403) 910-0389 or (437) 900-0527

A live webcast of the conference call will be accessible on Whitecap’s website at wcap.ca by selecting "Investors", then "Presentations & Events". Shortly after the live webcast, an archived version will be available for approximately 14 days.

For further information:

Grant Fagerheim, President & CEO
or
Thanh Kang, Senior Vice President & CFO

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

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