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Whitecap Resources Inc T.WCP

Alternate Symbol(s):  SPGYF

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.


TSX:WCP - Post by User

Comment by InvestSmarteron Sep 08, 2024 1:49am
248 Views
Post# 36213566

RE:RE:RE:RE:Break Even Cost Per barrel?

RE:RE:RE:RE:Break Even Cost Per barrel?Huh? Everything is being returned to unitholders, in form of dividends, buybacks, and improving the balance sheet. 7%+ eligible dividend is excellent. WCP is one of the best managed O&G Cos. They can't control the price of the shares, but they can take advantage of it through buybacks.

Anschutz wrote: As as shareholder this comment by management seems wrong. What exactly is the incentive for investors, if there is no meaningful return?  The share price has been in the dumps for a decade and very likely isn't going anywhere considering the ESG/NGO attacks on the sector. The only way we will ever see a respectable share price ever again, is when leadership & Boards come down from their gilded towers and share the wealth with investors. The dividend is about 7.4%. This is grossly inadequate in relation to share price volatility. Raising the dividend will reduce volatility as it incentives investors to hold during periods of share price decline. Don't get me wrong. It's good to see share buy backs. However shareholders should not always be the ones who bear the pain when management teams and boards opt to blow their brains out with bought deals. Perhaps it's time that management compensation be linked with performance based on the share price. 7% is barely adequate to hold any Canadian E&P in the current environment.

InvestSmarter wrote:

Thank you. I have confirmed this from the Q2 Earnings Transcript:

 

Thanks for that question there Patrick. Yes. As we go through the list of returns back to shareholders here the dividend at that .73 they're sustainable down $50 WTI. The yield from our perspective is too high. So there's certainly no rush for us to increase the dividend at this time. The priority would be around share buybacks. And that's why we've allocated the $200 million towards buying back our shares.

barneyj44 wrote: The company has stated many times over , dividend is covered down to $50 o
il.

 





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