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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 riskion Aug 05, 2021 3:31pm
87 Views
Post# 33658371

RE:RE:Too many shares

RE:RE:Too many sharesI think you misunderstood.  A company is valued at a certain market cap price.  That valuation can change and the price of the stock will reflect the new information.  If a company has 500 million shares outstanding, they have to increase value by 250 million just to see a 50 cent change in the share price - which for WCP is only a 9% gain on a signficant increase in valuation.

Too many shares makes the stock move slowly on improving valuation.

Debt is also important and will increase share value as it is paid down.  I would prefer share buyback at this price, but I'm not going to be upset with debt reduction either.  I just don't want to see free cash flow plowed into drilling and more acquisitions.  Enough is enough.  It's time for the shareholders to see some return.  

WINDGOD46 wrote: It is not so much the shares which dent a stock, CPG has 50 million less shares than WCP yet its share price is lower than WCP. What matters is how much debt each has. And I think CPG has double the debt of WCP. So it's important debt reduction takes priority over reducing the float. And if the oil price stays above $70 debt reduction will be subtantial the next two years, which will boost the sp. On the other hand S Arabia needs $80 oil to balance its budget every year and they are not going to flood the market to please anybody, the same way the big farmas or western monopolies gang up on the Third World countries would not reduce the price of their products.


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