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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Whitecap Resources Inc

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Post by retiredcfon Dec 17, 2024 8:31am

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Post# 36365826

RBC

December 16, 2024

Whitecap Resources Inc.
2024 Guidance Increased Slightly; Operations Update

TSX: WCP | CAD 9.79 | Outperform | Price Target CAD 14.00

Sentiment: Positive

WCP provided a brief operational update which featured slightly increased 2024 volume guidance (+1%) to 174 mboe/d (from 172.5 mboe/d), driven by exceeding type curve expectations, base production optimizations, timing of production adds and lower downtime. The company also provided an operational update detailing its asset performance, facility updates and delineation efforts. We view the update positively and reiterate our Outperform rating.

2024 Outlook: +1% to 174 mboe/d. The company's Q4 production is now guided towards 175.5 mboe/d (65% liquids) from its previous 170 mboe/d guide which represents a 3% increase. The company now expects FY24 to reach 174 mboe/d (from 172.5 mboe/d) which represents a 1% increase from its previous guidance driven from new wells exceeding type curve expectations, base production optimizations, timing of production adds and lower downtime.

Operations Update:

At Kaybob, its recent 5-well Duvernay pad (11-14B pad) was brought onstream one week earlier than forecast where initial rates are above expectations; the company is also testing vertical benching within the Duvernay formation and seeing "encouraging" results.
At Musreau, the company is producing 17.5 mboe/d (11 mbbl/d liquids) at its 5-9 battery, and the company has observed production capability of 25 mboe/d (after tying in its 4th four-well pad). WCP will continue manage pace of growth at Musreau development and review facility expansions as needed.
In Lator, the designing and engineering of its Phase 1 4-13 facility is progressing. IP365s from two 2023 wells have averaged 1.3 mboe/d (33% condensate) and an additional two delineation wells having promising early results. The Lator facility is constrained currently. Technical delineation efforts will be the main focus until late 2026-early 2027 when its 4-13 facility is expected to come online.
WCP's Central Alberta Glauconite assets have contributed to 1.4 mboe/d to Q4 outperformance through higher rates and increased third-party output. WCP continues to focus on debottlenecking initiatives, pursue to further expand egress and optimize operations, and noted its 10% cost reductions from monobore drilling.
In SE Sask, the company will step out its Frobisher drilling at Steelman and State A OHML pilot well to expand its inventory. Its State A OHML pilot well achieved an IP90 of 224 boe/d (73% liquids).