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Whitecap Resources Inc SPGYF


Primary Symbol: T.WCP

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 Westcoastenergyon Nov 20, 2024 10:59am
121 Views
Post# 36321737

RE:RE:This stock is still cheap.

RE:RE:This stock is still cheap.FoolDumb has no thesis, other than the stock price being cheap.  Not convinced he/she recognizes the effect of shares issued etc. in arriving at enterprise value rather than just focusing on the actual share price.
In any event, you clearly do have PTSD regarding the energy industry, likely for good reason. Anyone holding through Covid was taken for a real ride and the industry still has not recovered to pre 2015 levels, and likely never will. However, those companies still standing, particularly WCP, have become very efficient and have free funds flow at a very low oil price, I believe for WCP it is at below $50 per barrel that the dividend would be in jeopardy (but I stand subject to correction).  I'm not sure why you are indicating that the oil price is "lousy".  With the Cdn $ exchange, it is $100 Canadian per barrel, at least, with some grades achieving higher pricing.  WCP used WTI $65-$75 to forecast ahead for 2025 and settled on $70 to predict free funds flow of $1.6- $1.7 billion.  Anything higher will likely lead to a large debt paydown or special dividends. The drop in the Cdn dollar has certainly assisted.
Demand prognosticating is notoriously elusive and, as always, heavily subject to political events.
Grant indicated he would like the share price to improve to about $12 and I see that as very achievable given the numbers in their lastest release.  
Anyway, you appear to be out of the industry, good luck with your other investments.  I am certainly content to have about 15% of my total investments in energy.
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