Whitecap Resources Inc T.WCP

NO dividend increase

[pierrelebel]

Clearly I am not too happy with WCP not increasing the monthly dividend as they had previously explained.

I understand WTI has been down for several months and interest rates have gone up more than they expected.  Good and valid excuses.  However management should have issued a press release explaining it.

Still holding but unhappy with lack of communication.

[barneyj44]

I didn't expect a dividend increase yet. From there October news release Our 2023 budget of $900 - $950 million and average production guidance of 170,000 – 172,000 boe/d (64% liquids) is unchanged and is expected to result in the Company reaching our final net debt milestone of $1.3 billion in mid-20238. Once we achieve our net debt milestone of $1.3

[TouchDown12]

Good response to my other BB post. Now i understand the strategy. Thanks for your post. TD12

[NonCredibleSrc]

From Sept 27 NR... I expect a divvy increase, but not until the $1.8B milestone - which I assume, is fiscal year-end in terms of timeline.

[barneyj44]

The company stated $1.3 billion not $1.8

[NonCredibleSrc]

Completely incorrect Barney - please check... News Releases | Whitecap Resources Inc (wcap.ca)

[NonCredibleSrc]

I should restate - not completely... The part ost seem to be missing is that the shareholder returns were told to be 2 stage. Stage 1 - reaching 1.8 B in 2022 FY which triggers a 25-30% div increase. Stage 2 - reaching $1.3B next fiscal, at which time they are looking to increase returns to be 75% of FCF

[pierrelebel]

June 28 statement - following purchase of XTO: DIVIDEND INCREASE AND RETURN OF CAPITAL FRAMEWORK The Acquisition provides Whitecap with approximately $200 million of incremental free funds flow per year allowing us to accelerate the return of capital to our shareholders. Effective with the July dividend payable in August, our Board of Directors has approved a 22% increase to the monthly

[NonCredibleSrc]

Righto! So at year end (or just prior), I am expecting that WCP will increase the monthly divvy to between 4 and 4.5 cents /share/month - all other economic factors aside of course.

[aegisfang9]

I'd give them an extra month to deliver on their 1.8 B target. If they actually reach the target by year end they can increase the divvy increase for Feb

[NonCredibleSrc]

Mic drop.... Lol   Glta

[pierrelebel]

Better late than never. However, I am not happy with the misrepresentation offered by management in the announcement. On June 28 "Following the close of the Acquisition, our balance sheet will remain a priority with net debt milestones of $1.8 billion which we expect to achieve before year end 2022 and $1.3 billion which we expect to achieve in the first half of 2023" Today: "Our

[churchofnutsacc]

Oil was $130 in June...

[barneyj44]

I beleive were both correct Noncredible. From there October release: Once we achieve our net debt milestone of $1.3 billion, we anticipate returning 75% of free funds flow back to shareholders which includes a targeted annual base dividend of $0.73 per share.

[TouchDown12]

I get it! Also I thought the Dec. PR would explain progress on debt repayment, land sale, etc. Not sure this will be well recieved tomorrow AM. Am I missing something here? TD12

[tollycraft]

Agreed, still holding to but totally agree re lack of communication.  Easy for the top dogs, their always in the loop so know consistantly where they stand. It still plays on me when they kept telling us when they hit their debt target of $1.3 billion they would increase the dividend and return more to the shareholders.  Then out of the blue they announce the XTO acquisition in August

[newcoin]

They will suffer because they're not being straight forward with shareholders. I don't want to say they're being deceptive but what else can you think? Disappointed!

[barneyj44]

Tollycraft you may want to consider Keyera  Has a nice monthly dividend and a 6.6%yield. A nice addition to Whitecap. (Keyera is a midstream energy business that operates primarily out of Alberta. Its primary lines of business consist of the gathering and processing of natural gas in western Canada, the storage, transportation, and liquids blending for natural gas liquids and crude oil, and

[tollycraft]

Thanks for the tip barney.  I'm a pretty small fish in this big ocean so only hold this stock at the moment and looking for other small cap opportunity the same like as WCP. Looks like an excellant investment but a liitle over my head at the moment.  I've always been long on this stock so will be hanging around for a bit.  I Have 10 small caps on my radar and none have been

[barneyj44]

It's a tough market Tollycraft.  I ended up getting some 1 year Gic's which I have never done in my life. At least with that part of my portfolio I can sleep at night. Paying 5% it won't keep up with current inflation but expect that will subside.

[tollycraft]

Good move barney. GLTA