Whitecap Resources Inc T.WCP

It's a mixed bag

[iwpete]

XTO was originally the Cross Timber Oil Co. (I like the name).  In 2010 XOM merged with XTO for it's nat gas expertise.  It operated mainly in the US, think Permian.  It moved into Canada when in 2012 XTO bought Celtic Exploration Ltd for about $24 a share, about 105mm shares outstanding (about C$2.5 billion).  Some of the assets of Celtic that XTO didn't want were spun out in a new company - Kelt Exploration (some stuff in BC etc)

https://www.xtoenergy.com/en-us/Company/Who-we-are/Our-history

This is what XTO got in 2012
Under the terms of the agreement, ExxonMobil Canada will acquire 545,000 net acres in the liquids-rich Montney shale, 104,000 net acres in the Duvernay shale and additional acreage in other areas of Alberta.  About 30,000bpd production.

This is what WCP got

• Top Tier Montney & Duvernay Inventory. Montney lands acquired total 598,000 (567,000 net) acres, which increases Whitecap's total acreage in the Montney by over 500% and adds 1,772 (1,693 net) Montney drilling locations providing decades of long-term sustainable production growth and free funds flow generation. Additionally, the Acquisition consolidates certain working interests at Kakwa, Alberta, from an average of 66% to 100% on approximately 22,000 gross acres. The Acquisition represents Whitecap's entry into the prolific liquids-rich Duvernay play at Kaybob including 74,000 (72,000 net) acres with 252 (217 net) identified drilling locations.

[kavern23]

Whitecap got really strong asset here. As long as NG is over 4 this is great buy for the long term. Canadian natural resources paid almost 1 billion for storm resources, and storm is in BC and has higher pipeline costs due to location and lower growth potential and that was in Novemeber 2021 with weaker NG outlook by far. Hopefully WCP is agressive and drills this hard.  The Kakwa montney

[riski]

No question these are good NG assets. If you thnk NG will continue to be strong for years (not just months), don't mind the conversion from an oil name to a more gassy name, and don't mind the delay in shareholder returns by a year and a half, then maybe it still works for some. Not for me.