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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

Post by incomedreamer11on Jun 29, 2022 10:14am
269 Views
Post# 34790219

Analysts update

Analysts update

09:50 AM EDT, 06/29/2022 (MT Newswires) -- Tudor, Pickering, Holt on Wednesday reiterated its buy rating on the shares of Whitecap Resources (WCP.TO) with a C$14.00 price target after the Western Canadian oil and gas producer agreed to buy XTO Energy Canada, jointly owned by Exxon Mobil (XOM) and Imperial Oil (IMO.TO) for C$1.9 billion to gain production and lands in the prolific Duvernay and Montney fields.

"Yesterday, WCP announced the acquisition of XTO Energy Canada's 32mboepd (30% condensate and NGLs) portfolio across the Montney and Duvernay for C$1.9B in cash (C$1.7B net of positive working capital), bolstering the free cash flow and shareholder returns outlooks in tandem with the transaction," analyst Matt Murphy noted. "Based on the company's 2023 plans and reference price deck ($85/bbl WTI and C$4.50/GJ AECO), the ~C$185MM in free cash flow implies a ~10.5% free cash flow yield net of assumed positive working capital which screens above current WCP valuation (we model WCP at 22% at the same price deck), but infrastructure and acquired inventory boost the long-term outlook for the company ... With the transaction, the company announced an updated capital allocation framework alongside net debt milestones, with the dividend increased +22% (~4.5% implied yield) and expected future increases to come alongside leverage targets."

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