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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 jimgeorgeon Jul 05, 2022 8:25pm
513 Views
Post# 34803759

Grant has it right

Grant has it right

Here are some comments from an ex oil CEO (me);

Grant's comment that a game plan of all buybacks and dividend increases is unsustainable is 100% correct.  Companies will not last long without high grading and adding to their inventory.  Don't believe anyone (including Grant) who tells you they have 20 years (or whatever) of tier 1 development drilling locations. No one drills their worst locations first - EVERYONE drills the best locations first.  The next round of drilling may still have a very high chance of success, but something is different enough that these wells weren't drilled first.  Maybe the reservoir is a little tighter here, leading to lower flow rates.  Maybe the reservoir is a little thinner here, leading to lower ultimate recoverable oil per well.  Maybe the surface conditions at these well sites are more difficult to drill from, or these well sites are farther from infrastructure, leading to higher costs per well...  


If you think oil companies can just keep drilling the same play for 20 years and keep buying back shares and increasing dividends, it won't happen.  Grant's blend of great acquisitions which upgrade his inventory, combined with steadily increasing the dividends in a cautious sustainable way will make WCP the go to stock to own in 1-2 years.  And don't forget WCP is beyond "Net Zero", they inject more CO2 than they produce.  Most environmentally sound oil company in North America.

And finally, Grant always said he would continue to do opportunistic acquisitions along with increasing shareholder returns.  There were no lies, maybe some shareholders only hear what they want to hear...

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