Whitecap Resources Inc T.WCP

Whitecap acquisition of XTO Canada

[Wildfury]

After reading the news release I have a bunch of highlights I'd like to share with you all. First, this is all cash, financial deal, no shares to be added to dilute the float. Second, it's a 4 year loan , at 1.7 Billion debt added, to be paid in that time frame. Third, 672.000 additional acres of prime land in the Monteney, kakwa, Dunverny plays with over 2 000 tier 1 drilling locations. Fourth, over 20 years of added inventory with proven production. Fifth, the acquired lands to be developed to increase production from 32,000 to 50 - 60 000 bpd. Think about this, recently some of the smaller Canadian producers eg, Crew, Cardinal, Athabasca and some others were had their market caps running 1 billion - 3 billion. Some of those companies produce from 20,30,40, 000 bpd with some producing more nat gas than oil. You want to buy a producer like Crew for example, they produce roughly 30,000 bpd, mostly gas, are they going to sell their company for a Billion or are they going to ask much more? After you read the news release the more you will understand how the made a great deal. This will definitely turn Whitecap into a major player within the next 3 years and with the dividend being increased next month for August payment with a just under 7 cents next year that's more than 100% increase. within 12 months. I'm not going to get wrapped up with the day to day noise or price swings with this stock anymore. If this stock doesn't reach $20 by this time next year I'll be shocked, we shall see. .

[1970Craig]

Incredibly well said wild furry !!  

[clamlinguine]

Bankers are delighted. What's not to love.

[45yessss]

I agree----t

[Wildfury]

You're correct, in this era of anti oil the banks gladly provided the capital to Whitecap feeling safe with the future plans. They know the potential of the the acquired lands in prime locations, plus they could potentially sell some sections in the future to utilize core holdings. To produce 32,000 bpd equivalent today would cost multiple millions in drilling, infrastructure costs, not to

[Citizen13]

One of two things will happen. The price of the commodities stay high due to Putin, ESG and the unwillingness to overproduce or something really bad happens and the commodity prices tank.  If it's the latter WCP will be hammered as hard as arrogant CPG was when they were constantly trying to grow.  90% down elevator.  I'm sure the banks are in the camp that oil and gas high

[1970Craig]

[/quoteWildfire    Wildfury ...... you know It had crosssed my mind that Whitecap could sell something , even something on the substantial side , who knows , I don't know , but you know selling something that is not core , that there not in love with , and this would change the  debt out look . Fast track things to there target       If prices stay

[spacegimp]

Such a high price to pay for 10k barrels of liquids 180k/ flowing barrel yikes