Canaccord reiterates WCP as one of its top energy picksWhitecap Resources (WCP-TSX: C$10.20 | BUY, C$14.50 target, Mike Mueller) We are reiterating our top pick in the Canadian E&P sector with Whitecap Resources. Following its recent $520M monetization of a portion of its Musreau/Kaybob infrastructure assets, WCP has advantageously positioned itself since deleveraging following its $1.7B acquisition of XTO Canada in 2022. Including $200M of the proceeds earmarked for buybacks in H2/24 (~3% of its market cap), WCP will have ~$1.9B of unutilized credit capacity available to accelerate the development of its existing assets with the added optionality to pursue potential M&A opportunities. Recall that WCP plans to grow its production base by a 5% CAGR over the next five years. Over this time frame, the company anticipates consuming less than 10% of its Montney and Duvernay inventory. Notably, this future growth is being accompanied by its $0.73/share dividend (annualized), offering investors a 7% yield. WCP shares have increased 15% YTD compared to the sector at 17%. With the dividend currently yielding 7%, this implies a total return of 49% on our 12-month target price. Our target price is a blended NAV and EV/DACF-based approach and maps to a 2025E EV/DACF of 5.1x and is 0.7x our C-NAV. WCP currently trades at 3.7x 2025E EV/DACF, in line with its peer group average of 3.7x.