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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 Wildfuryon Mar 16, 2022 10:38pm
195 Views
Post# 34520735

RE:WCP vs MEG...

RE:WCP vs MEG...
Praxis, although you make some good points, that fact remains that WCP pays a decent dividend right now, MONTHLY, MEG does not. The outstanding shares means nothing and I'll tell you why. MEG has roughly 300 shares, WCP has over 600 million shares. MEG trades at almost double the price of WCP without that MONTHLY dividend right? That means you can buy double the amount of WCP shares for the price of one MEG share. It's all relatively the same thing isn't it?. WCP is actually buying shares back now and next year which personally I feel that they're throwing their money away for nothing. They could do a 1-2 reverse split, now they're down to MEG level for comparison and the shares would double overnight correct? What did we gain? Nothing, it's the same thing. Why pay hundreds of millions of dollars to buy back shares when a reverse split would cost them peanuts. The main thing is that they have good management, pay an ever increasing dividend MONTHLY, have the best carbon sequestration technology in the oil patch with growing reserves and increasing production. Look at Cardinal energy, 150 million shares, 124 million float, trading in the $7.00 range with 17% of shares held by insiders, that's huge. Nuvista, trading in the $9's with approximately 250 million shares, float of 150 million, 22% held by insiders. That's what I look at, the whole picture. Cardinal, Nuvista, are not in the same league as WCP, their production is basically 20, 000 bpd compared to Whitecaps 132,000 bpd production. Don't compare company X vs Z unless the debt, shares outstanding, production are all the same. Look at WCP's P/E ration, it's just over 3 x earnings, that tells me it's severely undervalued. Take a look at ATH, Athabasca oil, around $2.00 per share with a P/E of over 70 x earnings? I wouldn't touch it, period. Praxis, don't worry about WCP, it's doing great with the best is yet to come.
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