Whitecap Resources Inc T.WCP

Holy Cr ap News

[divime1]

https://www.newswire.ca/news-releases/whitecap-resources-inc-acquires-xto-energy-canada-in-an-all-cash-transaction-and-increases-dividend-by-22--819704299.html

[filefish]

Probably explains why the stock has been relatively week in the past couple of months. I like the Dividend increase, but I HATE  the size of the debt they added. The divy was going to go up either way, with or without the acquisition. Now we have to worry about a bank term loan and the debt overhang for the next 4 years. If they were able to hedge 32k boe/d at current prices for the next 4

[NonCredibleSrc]

Read it in more depth... "Following the close of the Acquisition, our balance sheet will remain a priority with net debt milestones of $1.8 billion which we expect to achieve before year end 2022 and $1.3 billion which we expect to achieve in the first half of 2023" "We are targeting additional dividend increases of $0.12 - $0.15 per share annually on achieving each net debt

[45yessss]

They also just bought Imperial-Exxon Montney and Duvernay reserves---These guys are going huge---I love it As long as oil stays in the >$100 range this will double our share price in a year

[filefish]

The dividend was going up either way. Guess it depends on whether you prefer a larger more leveraged Company vs. a smaller, debt free company. With the debt leverage increase, they will most likely not continue to aggressively buyback shares in the short term . Nuttall will not be happy.   

[barneyj44]

Nuttall has Whitecap as part of his dividend payers. I think he will like it.

[Dogsbreakfast4U]

Based on what management had stated shareholders were about to be hansomly rewarded once the company had achieved their 800 million at the end of this quarter. Not any more at least in the short time. Pilling on more debt at this time doesn't appear smart.  I don't think the market will like the surprise and the small .67 cents a share monthly dividend increase. Once again they are

[jjgrey]

Scary??? It's a fantastic deal!

[riski]

I think it depends on what you want to invest in. It's mostly a gas acquisition which is ok now, but they paid top dollar at peak NG prices for those assets. The metrics look reasonable today, but NG price moves quickly as the supply and demand is at the mercy of local conditions, weather, and other things and this could sour in a heartbeat.  Furthermore, a lot of people like me would

[Cobalt]

Yup held it as an Oil play , no longer , if i want gas i buy the ones that will be taken out to fill LNG Canada , some will love it and some will move on , cheers

[Hendrick3]

Great deal if prices stay high but if prices stay high there are at least a dozen better values. If prices tank, WCP moves to the top of the dump list. So either way, not a good deal for shareholders in the short term. 

[Frost19]

What a great deal for Whitecap! Sure they added debt but they will crush that debt in no time and production will keep soaring. I'll be adding and dripping my shares at a higher rate now thanks to the div increase!