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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 1970Craigon May 05, 2022 12:27pm
127 Views
Post# 34658990

RE:RE:I WAS WRONG.

RE:RE:I WAS WRONG.

Totally agree. The only thing I don't like is the news often controls the price of oil , and the facts take a back seat , until they can't be ignored.  They, CEO - TEAM - and BOARD ,  I believe are less worried about the stock moving higher , with the NCIB , seeming to be more important.  I can't disagree.  If they buy 10 percent of the float , 62 M shares.  This is essentially buying the other 90 % remaining shares  or US !  a company with  about 13,100 BOE a day , 10 % of the daily production , and  or 600 plus ready to go drill sites.   With those shares trading at half the P/E of yester years ,  and no dividend to worry about with those 62 M shares.   

      So I might be wrong but we are not just buying shares we are buying production.  As the amount of barrels per share rises.   

   So 800 M is there next debt milestone. Dividend will be raised then , so I think your right about the divvy being raised. 

   Back to the share price could be higher , when the CEO had the ability through Discretionary Free Funds flow to multiply the dividend 6 maybe 7 times with oil at today's price , and at 65 raise the dividend 3 times , or .09 cents a month.   

    To fill the NCIB they need 620 M at $10 or 682 M at $11. 

so this is a little less than 6 months cash flow , they have the room to do this with there credit line.  However to buy back all the shares , and get debt to 800 M. 

   This will take 7 months ?  Maybe as many as 9 months. 

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