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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Post by retiredcfon May 24, 2023 8:50am

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Post# 35461535

RBC

May 23, 2023

Whitecap Resources Inc.
CRA proposal letter related to prior tax deductions

TSX: WCP | CAD 10.27 | Outperform | Price Target CAD 14.00

Sentiment: Neutral

Whitecap has received a proposal letter from the Canada Revenue Agency (CRA) related to deduction of non-capital losses in 2018-2019. The CRA may move forward with a reassessment for the years in question, which could ultimately result in a sizeable tax liability. Management plans to defend the action and we note these processes can be drawn out with the timeline highly uncertain at this point.

Details:

• CRA proposal letter related to deductions in 2018/19. Whitecap has received a proposal letter from the Canada Revenue Agency (CRA) related to deduction of non-capital losses in 2018-2019. The CRA may move forward with a reassessment for the years in question, which could ultimately result in a sizeable tax liability. Deductions over that timeframe amounted to roughly $494 million, which could result in a tax liability of $133 million, plus any associated interest. If the CRA decides to move forward with a formal reassessment, Whitecap will be required to pay 50% of the estimated liability plus interest within 90 days.