Overview

WCP’s commodity marketing strategies focus on continuous development of reliable, safe and cost-effective transportation opportunities to ensure uninterrupted access to diverse markets, resulting in optimum netbacks

Our extensive relationships with creditworthy refiners, end users, midstream facility operators, commodity purchasers and transporters strengthens our ability to attract, evaluate and execute on a diverse range of opportunities

WCP utilizes its unique operated infrastructure across our operating regions to enhance access to a variety of commodity sales streams and delivery points, further mitigating risks and enhancing commodity netbacks

Crude Oil

Sales

  • WCP ships and sells oil at all of the major hubs across Canada
  • 60% of production is outside of the standard Enbridge apportionment points and not subject to restrictions

crude-oil-pie-chart-2023.jpg

Crude Oil Map

Oil Logistics

WCP employs three main modes of transportation to move products to markets safely:

Pipeline

  • WCP transports and trades crude on pipelines and crude oil hubs across North America.
  • According to the Canadian Energy Regulator, crude oil pipelines transport 1.3 Billion barrels of oil per year at a safety rate of 99.999917%.

Rail

  • In order to mitigate transportation disruptions due to pipeline capacity constraints, WCP employs rail transportation to a diverse customer base across North America.
  • According to the Railway Association of Canada, the railway industry moves 99.999% of dangerous goods to their destinations without a release resulting from an accident.

Truck

  • Within the Western Canada Sedimentary Basin WCP moves sales oil by truck transport to access pipeline infrastructure and to improve netbacks.
  • Further advantages are realized through infield hauling and commodity movements to optimize WCP's operated facilities and crude oil quality.
Whitecap Resources

Risk Mitigation

The objective of Whitecap’s risk management program is to protect economic returns and mitigate commodity price volatility with a systematic hedging program.

Whitecap’s risk management strategy is to have downside price protection with upside participation and will employ derivative products including Costless Collars and Swaps.

Refer to Note 5 of Whitecap's audited annual consolidated financial statements for the three and twelve months ended December 31, 2022 for the details of our hedge positions.

Current Oil Hedges
(as of FEBRUARY 22, 2023)		 1h/23 2h/23 2024
Percentage of production hedged 13% 10% 6%
SWAPS hedged (bbls/d)
AVERAGE SWAP PRICE (c$/bbl)
CollarS hedged (bbls/d)
Average collar price (C$/bbl		 2,000
$87.53
8,500
$72.06 x $99.79		 2,000
$88.54
6,000
$74.17 x $101.03

-

-

5,000

$82.00 x $116.98

Natural Gas

We actively optimize our natural gas and NGL processing, transportation, fractionation and sales arrangements in conjunction with capital development strategies.

Our relationships, logistical capabilities and our operated asset base ensure we have uninterrupted access to diverse markets at optimal netbacks

Crude Oil Map