Whitecap Resources Inc T.WCP

Alternate Symbol(s): SPGYF

Energy Oil & Gas E&P

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.

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Whitecap Resources Inc > Latest from Peters & Co

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Comment by pppon Jul 21, 2022 12:39pm

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Post# 34840778

RE:Latest from Peters & Co

A very important statement. Will pay out 75% of Free CF. So from pg 11 WCP guided 1.1bil FCF at 85 dollar oil. This means they could pay around 750 mil in div for 23. Share count around 620 mil. means 1.20 a share. Todays buyers at 9.00 dollars could be making around 13 % div. Remember thats 85 dollar oil.

Outlook & Recommendation: We have provided a detailed operations update and have outlined Whitecap’s upcoming activity for the remainder of this year. Over the past two years, Whitecap has successfully completed several transactions that in conjunction with the increase in commodity prices have significantly improved the base business and free cash flow profile of the company. Whitecap has utilized M&A to further enhance its base business by adding significant inventory and growth potential in the Montney through the XTO transaction. Upon achieving its near-term net debt thresholds, the company plans to further enhance shareholder returns and will ultimately pay out 75% of free cash flow to shareholders (we estimate by mid-2023 at current strip). Additionally, Whitecap continues to advance its various New Energy initiatives through leveraging its Weyburn expertise (evidenced with the Alberta CCUS project and five Saskatchewan MOUs), which differentiates the company from its peers and provides potential upside to the current valuation. We maintain our Sector Outperform recommendation, with a 12-month target price of $16.00 per share. Our target price is based on the combination of a 2023E EV/DACF multiple of ~5 times, a DAFCF yield of ~12%, and is a discount to our risked PAV of ~$19/share.