I honestly think Whitecap is misunderstood. Its current form, and where it’s going don’t exactly reconcile at first glance, and thus it gets placed in a bucket with other mostly oil-weighted producers, and middle of the road dividend payors. But it’s more than a 5% yield and 64% liquids, it’s a bet on Grant, and the team, to deliver something great inside the next decade, and shareholders looking to the short term flags like slight type-curve beats, or small dividend increases, end up missing the forest for the trees. It’s not a dividend name, and it’s not a single well bet, more abstractly — it’s one of, if not the only Canadian SMID on the market that has a real chance at crossing solidly into that ‘large cap’ territory, and competing with Tourmaline.
The fact is, Whitecap is one of the longest duration liquids-weighted conventional names in Canada and their recent acquisitions (think back to NAL, Torc, and more recently XTO Canada) have have given them the runway and cushioning to c…