Stifel Raise Target After a late Thursday announcement of a 26-per-cent increase to its monthly dividend (to 6.08 cents per share) and the expectation it will reach its $1.3-million net debt target by Sept. 30, Stifel’s Cody Kwong increased his Whitecap Resources Inc. (WCP-T) target to $14.75, above the $13.58 average, from $13.75 with a “buy” rating.
“With this achievement WCP is committed to returning 75 per cent of free funds flow to shareholders, with buybacks and/or special distributions in addition to its already impressive base dividend,” said Mr. Kwong. “In addition to its dividend increase announcement WCP has as well extended its Weyburn CO2 purchase and sale agreement until the end of 2024. We have made minor reductions to our 2024 production estimates with this update. Due to an optimistic commodity price outlook and WCP’s demonstrated commitment to returning capital to shareholders we have increased our target.”