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Whitecap Resources Inc T.WCP

Alternate Symbol(s):  SPGYF

Whitecap Resources Inc. is an oil-weighted growth company. The Company is engaged in the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its core areas include the West Division and East Division. Its West Division is comprised of three regions: Smoky, Kaybob and Peace River Arch (PRA). The properties in its Smoky region include Kakwa and Resthaven, all located in Northwest Alberta. The primary reservoir being developed is the Montney resource play, mainly comprised of condensate-rich natural gas. Kaybob is located in the Fox Creek region of Northwest Alberta. The primary reservoir being developed is the Duvernay resource play, mainly comprised of condensate-rich natural gas. The PRA is its original asset area. Its East Division is comprised of four regions: Central AB, West Sask, East Sask and Weyburn. Its Central Alberta region represents the bulk of its Cardium and liquids-rich Mannville assets.


TSX:WCP - Post by User

Comment by stockfyon Feb 18, 2021 10:36am
125 Views
Post# 32595145

RE:WCP and Unknown Debt-Free Spartan Delta (SDE)

RE:WCP and Unknown Debt-Free Spartan Delta (SDE)For comparison purposes, WCP's leverage is about 2 times, based on the latest guidance.

stockfy wrote:

WCP is a good company but it has debt. So if you want to diversify with a pure upstream debt-free energy company that has zero risk thanks to its pristine balance sheet, see unknown Spartan Delta (SDE) before it becomes popular.
 
SDE is new, so it's still unknown.
 
SDE is natural-gas weighted and just announced another deal yesterday and new guidance for 2021.
 
SDE currently is debt-free with surplus of C$35 million.
 
Proforma yesterday's deals, SDE will remain debt-free by the end of 2021 with a significant surplus of CAD$54 million, based on the latest guidance below:
 
https://www.globenewswire.com/news-release/2021/02/16/2176560/0/en/Spartan-Delta-Corp-Announces-Three-Strategic-Acquisitions-and-80-0-Million-Financing.html
 
 
So debt-free SDE must have the strongest balance sheet while being the most undervalued Canadian nat gas weighted producer because SDE currently trades less than C$10,000 per boepd and just 2.5 times its annual cash flow.
 
Insiders own about 26%.
 
SDE's management team has an impeccable pedigree with very high returns from their previous 3 companies, Spartan Exploration, Spartan Oil, Spartan Energy sold to VET.
 
AECO will also remain very strong in the next weeks and months.
 
My two cents.

 


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