CIBCUpcoming Earnings
Whitecap Resources (WCP-TSX | OP, $15.00) reports after market on April 26. Our
Q1/23 production of ~157 MBoe/d and CFPS of $0.72 are in line with consensus of ~157
MBoe/d and $0.70, respectively. Whitecap recently increased its monthly dividend 32% (now
$0.0483 per share) following the achievement of its subsequent leverage target. The
company continues to make progress on its net debt target of $1.3B, which we expect to be
achieved in Q3/23 on current strip. We continue to expect the company to increase its free
funds flow allocation to shareholders to 75% (from 50%) this year. This will likely take the
shape of an increased base dividend of $0.73 per share, share buybacks, and/or special
dividends. WCP’s Q1/23 conference call will be held at 11:00 a.m. ET/9:00 a.m. MT on April
27.