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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 WINDGOD46on Aug 05, 2021 4:23pm
99 Views
Post# 33658647

RE:RE:RE:Too many shares

RE:RE:RE:Too many sharesNoone wants a dilution of a stock;from the the P/E ratio this is evident. WCP has a P/E ratio of 5.6, meaning in plain terms you need 5.6 dollars to deploy in order to make one dollar. On this metric CPG has a P/E ratio 1.5, much better than WCP. yet only the P/E ratio is misleading to evaluate a co. because in the P/E it does not show the long term debt of a co. And though CPG has less shares outstanding, because of its larger debt, its valuation is lower. And since there is talk everyday of inflation and the need to raise  interest rates, priority should be given to the debt reduction. And the management has got this right and are focusing on debt reduction mostly. high costs can eat into the profits and its P/E ratio. At the same time they must give its shareholders some incentive to stick around hence the Div. increase is a must. It'sa balancing act they have to  perform.
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