News Releases

WHITECAP RESOURCES INC. REPORTS STRONG SECOND QUARTER RESULTS DRIVEN BY OPERATIONAL AND FINANCIAL PERFORMANCE

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 six months ended June 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 six months ended June 30, 2025 which are available at www.sedarplus.ca and on our website at www.wcap.ca.

Financial ($ millions except for share amounts)	Three Months ended Jun. 30		Six Months ended Jun. 30
	2025	2024	2025	2024
Petroleum and natural gas revenues	1,365.3	980.4	2,307.5	1,848.7
Net income	310.6	244.5	473.2	304.3
Basic ($/share)	0.33	0.41	0.62	0.51
Diluted ($/share)	0.33	0.41	0.61	0.51
Funds flow 1	712.8	426.4	1,159.1	810.4
Basic ($/share) 1	0.76	0.71	1.51	1.35
Diluted ($/share) 1	0.75	0.71	1.50	1.35
Dividends declared	185.4	109.2	292.6	218.3
Per share	0.18	0.18	0.36	0.36
Expenditures on property, plant and equipment 2	408.8	203.8	806.9	597.0
Free funds flow 1	304.0	222.6	352.2	213.4
Net debt 1	3,290.1	1,297.0	3,290.1	1,297.0
Operating
Average daily production
Crude oil (bbls/d)	152,090	93,663	123,089	91,235
NGLs (bbls/d)	35,079	20,701	28,659	20,052
Natural gas (Mcf/d)	633,511	377,700	506,817	373,200
Total (boe/d) 3	292,754	177,314	236,218	173,487
Average realized price 1,4
Crude oil ($/bbl)	83.13	102.06	86.87	95.71
NGLs ($/bbl)	33.86	34.88	35.49	34.83
Natural gas ($/Mcf)	1.85	1.30	2.05	1.95
Petroleum and natural gas revenues ($/boe) 1	51.25	60.76	53.97	58.55
Operating netback ($/boe) 1
Petroleum and natural gas revenues1	51.25	60.76	53.97	58.55
Tariffs 1	(0.44)	(0.42)	(0.38)	(0.43)
Processing & other income 1	0.46	0.71	0.59	0.74
Marketing revenues 1	3.04	3.95	3.36	3.91
Petroleum and natural gas sales 1	54.31	65.00	57.54	62.77
Realized gain on commodity contracts 1	1.62	0.28	1.33	0.32
Royalties 1	(6.97)	(10.09)	(8.04)	(9.77)
Operating expenses 1	(13.58)	(13.49)	(13.58)	(13.87)
Transportation expenses 1	(2.80)	(2.12)	(2.63)	(2.09)
Marketing expenses 1	(3.04)	(3.91)	(3.32)	(3.88)
Operating netbacks	29.54	35.67	31.30	33.48
Share information (millions)
Common shares outstanding, end of period	1,231.6	599.4	1,231.6	599.4
Weighted average basic shares outstanding	941.4	598.8	765.4	598.4
Weighted average diluted shares outstanding	946.4	602.1	770.2	601.9

MESSAGE TO SHAREHOLDERS

Whitecap continued its strong operational momentum in the second quarter of 2025 with production averaging 292,754 boe/d, including 187,169 bbls/d of oil, condensate and NGLs and 633,511 mcf/d of natural gas. Exceptional asset level outperformance continued across our unconventional and conventional portfolios, leading to production exceeding our internal expectations.

During the quarter, we successfully closed the strategic combination with Veren Inc. ("Veren") on May 12, 2025, creating Canada's seventh largest oil and natural gas producer and the fifth largest natural gas producer. Whitecap has now become the largest Alberta Montney and Duvernay landholder and a prominent light oil producer in Saskatchewan with a deep portfolio of premium drilling inventory across all commodities.   

Following the strategic combination with Veren, our balance sheet remains in excellent shape with low leverage and ample liquidity. Our credit rating was upgraded to BBB, with a stable trend, by DBRS, Inc. in the second quarter, reflecting our improved credit profile. During the quarter, we also issued investment grade 3-year senior unsecured notes for gross proceeds of $300 million at an attractive fixed coupon of 3.761% per annum.

We also further improved our balance sheet through the disposition of certain non-strategic assets which closed in the second quarter for aggregate consideration of $270 million, prior to closing adjustments. This includes the previously announced sale of medium oil production in southwest Saskatchewan and an 8.333% working interest in a natural gas facility in the Kaybob region.

We are pleased to provide the following second quarter and year to date 2025 financial and operating highlights:

·      Production Outperformance. Second quarter production of 292,754 boe/d represents an increase of 5% per share⁵ compared to the second quarter of 2024 and a 2% per share increase over the first quarter of 2025. Asset level outperformance, along with the timing of new production additions and downtime optimization, contributed to production exceeding our internal expectations.

·      Funds Flow. Second quarter funds flow of $713 million ($0.75 per share) increased 6% per share compared to the second quarter of 2024. After capital investments of $409 million, Whitecap generated free funds flow of $304 million in the quarter.

·      Balance Sheet Strength. Quarter end net debt of $3.3 billion equates to a net debt to annualized funds flow ratio¹ of 1.0 times. Our unutilized debt capacity of $1.6 billion provides us with significant financial flexibility to navigate through periods of market volatility.

·      Return of Capital. For the six months ended June 30, 2025, we returned $298 million to shareholders through our monthly dividend of $0.0608 per share and share repurchases under our normal course issuer bid ("NCIB"). Our NCIB was renewed in the second quarter, allowing for the repurchase up to 122.1 million shares, or 10% of our public float, prior to May 22, 2026.

OPERATIONS UPDATE

Unconventional

In the Kaybob area, our Duvernay production was higher than forecasted as strong operational execution advanced new pad production into the second quarter along with downtime optimization that allowed us to mitigate the impact of turnaround activity at our 15-07 gas processing facility. Our third pad utilizing a wine rack style design was also recently brought on production through permanent facilities with encouraging initial results. Positive production results from our first three wine rack style pads, combined with strong observed reservoir performance, are providing us the confidence to proceed with this development approach on applicable lands across our Kaybob asset. This design is expected to enhance our production performance and financial returns in the play by improving per well recoveries and associated well economics in our high quality Duvernay inventory.

 At Gold Creek and Karr, 12 Montney wells (12.0 net) were brought on production across two pads in the first half of 2025. Production results are in line with our internal expectations and provide us with incremental technical data to assess the impact of well design and development changes on well economics and the long-term potential of the assets. Following optimization and debottlenecking efforts in the first half of 2025, there has been improved infrastructure reliability and utilization across both Gold Creek and Karr.

Our prior results have proven the deliverability of our Musreau Montney asset and have provided us with confidence to drill larger-scale multi-well pads to further improve the capital efficiency of the area. We are currently drilling a 6.0 well (6.0 net) pad which is forecasted to be on production in early 2026 as plant capacity becomes available. We also continue to investigate debottlenecking options which would increase gas throughput at the 05-09 battery.

At Kakwa, we successfully brought our first triple bench Montney pad on production during the quarter with strong initial results. The 3-well (1.5 net) pad in northwest Kakwa achieved an IP90³ rate of 1,212 boe/d (65% liquids) which is 14% above our expectations. The pad configuration is performing as expected based on our technical observations at this early stage, providing an important validation point for this triple bench design.

We continue to see encouraging results from our two (2.0 net) delineation Montney wells drilled on the eastern and southern portions of our Lator acreage in 2024, with average performance exceeding our internal expectations by approximately 20%. We plan to begin drilling a 3-well (3.0 net) pad in the area late in the third quarter, further advancing our technical delineation program and understanding of the Lator asset, with relevant technical read-through to our adjacent Resthaven acreage.

Phase 1 of our planned 04-13 Lator facility is progressing on schedule, with all regulatory permits required to commence construction received. We have initiated earthworks on the facility site and procured all necessary equipment with expected delivery in the first quarter of 2026. The 35,000 – 40,000 boe/d facility is scheduled to be completed in late 2026/early 2027 while Phase 2 is expected to increase production up to 80,000 – 85,000 boe/d in the 2029/2030 timeframe.

Conventional

Open hole multi-lateral ("OHML") development continues to progress at Viewfield in southeast Saskatchewan. Our 5 (4.5 net) most recent Bakken wells have exceeded our internal expectations by 27%. We recently brought our first 2.5 mile Bakken well, which was the longest OHML drilled in the play to date, on production with encouraging initial results. We plan to drill 7 OHML wells (4.9 net) in the Bakken in the second half of 2025, including a 3.0 mile pilot well which we recently commenced drilling.

We are also advancing our OHML program within the Frobisher in eastern Saskatchewan following strong results in 2024. Our active first quarter program included 13 (12.2 net) wells, and our focus on drilling additional legs and longer laterals has led to capital efficiency improvements of approximately 25% as compared to the prior year. Through the balance of 2025, we plan to drill an additional 21 (20.0 net) OHML wells in the Frobisher, building on our strong momentum to date. We continue to evaluate further opportunities to enhance well economics and inventory in the play, including increasing the number of legs per well to maximize royalty incentives in addition to facility debottlenecking and expansion projects. We also continue to evaluate the applicability of OHML technology in other areas across our conventional portfolio, which has the potential to enhance economics and add drilling inventory.

The Cardium wells brought on production at Wapiti during the first quarter continue to exceed our expectations, further validating the well design enhancements on returns in the play. We now have 6 wells (5.4 net) which have been on production for approximately 180 days, achieving an average IP180³ rate of 558 boe/d (79% liquids). These wells, which included an optimized completions design based on workflows utilized in our unconventional assets, have exceeded our type curve expectations by 59% and provide us with the confidence to deploy this approach on future wells in the area.

Recent facility egress optimizations within our Glauconite play allowed us to mitigate the production impact of planned downtime during the quarter, driving outperformance relative to internal expectations. Our Glauconite assets have shown significant improvement in profitability since they were first acquired in 2021 through the combination of monobore drilling, production results continuing to exceed expectations and increased facility access and utilization.

OUTLOOK

The strategic combination completed with Veren in the second quarter has established Whitecap as a premier operator in the Western Canadian Sedimentary Basin with enhanced scale, significant premium inventory, financial strength and robust financial returns to shareholders. Our portfolio contains high quality drilling opportunities ranging from light oil, through condensate-rich to prolific lean natural gas for enhanced flexibility and to maximize returns across commodity cycles.

We have made significant progress integrating the acquired assets and personnel to date, capturing early synergies through the consolidation of corporate costs and from our improved credit profile. Shared learnings and expertise are occurring across our consolidated portfolio and are expected to drive additional capital efficiency improvements and operating cost reductions within the next 6 – 12 months. We look forward to updating shareholders on our progress through the remainder of the year.

We now expect to be at the high end of our 2025 production guidance of 295,000 – 300,000 boe/d (63% liquids) due to the outperformance achieved in the second quarter on an unchanged capital budget of $2.0 billion. For the second half of 2025, production is expected to average 363,000 – 368,000 boe/d (62% liquids) based on capital expenditures of approximately $1.2 billion.

Our long duration of premium inventory puts us in a very enviable position to deliver on our strategic priorities of balance sheet strength, capital discipline and providing exceptional returns to shareholders well into the future.

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

Note for U.S. Holders

Whitecap has recently changed its OTC ticker symbol to "WCPRF". Whitecap’s common shares were previously trading on the OTC Market under the symbol "SPGYF". No action is required by shareholders with respect to the ticker symbol change.

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 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   Production per share is the Company's total crude oil, NGL and natural gas production volumes for the applicable period divided by the weighted average number of diluted shares outstanding for the applicable period. Production per share growth is determined in comparison to the applicable comparative period.

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, July 24, 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 www.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
www.wcap.ca
InvestorRelations@wcap.ca

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