Whitecap Resources Inc T.WCP

Assessment

[retiredcf]

WCP has struggled compared to its large cap competitors such as CNQ and SU. I have a position which is underwater and in your opinion, is it a buy, sell or hold?

SU and CNQ have experienced better total returns in the near term compared to WCP largely due to their aggressive capital returns policies (dividends increases and large share buybacks), while WCP just recently spent capital on a large acquisition (which may take time to reflect into its financials). We think WCP is still a decent-quality energy name that consistently pays monthly dividends. Similar to other energy names, WCP will move with energy prices in the short-term. The shares are cheap, the yield is high, the balance sheet is also solid, and we think WCP should do okay in a better energy price environment. It is also much smaller than the others and in a sector sell off, large companies typically hold up better. (5iResearch)

[barneyj44]

My thoughts are Wcp is a strong buy. I too am underwater in one of my accounts but up in another. If I didn't have such a big position I would be adding like crazy.

[silverbaby]

This is a solid company. Rather than being so depressed about the share price, people should be happy the company can buy back shares cheap, which will ultimately increase the share price at some point as long as oil stays strong.

[jleer42]

Whether WCP is a buy, sell or hold really depends on why you are buying it. For me it is one part of my O&G holdings and overall strategy. Most of my holdings have small or no dividends and are more torqued to the price of oil. WCP is a relatively safe high dividend - 8% and safe to $50 WTI. It hasn't gone up as much as most of my other longer term holdings nor has it gone down as my small

[barneyj44]

Wcp hasn't fared that bad compared to others. 1 year performance were down 16% compared to Baytex being down 29%. This is why I like dividend payers and companies that have a drip plan.