Whitecap Reports Record Production in Q2

- August 1st, 2018

Canadian-based Whitecap Resources is an oil focused company that pays a monthly cash dividend to its shareholders. 

Whitecap Resources (TSX: WCP) has released its operating and unaudited financial results for Q2 and the first half of 2018.

Canadian-based Whitecap Resources is an oil focused company that pays a monthly cash dividend to its shareholders.

As quoted from the press release:

We are pleased to report an exceptional second quarter with record average production of 75,813 boe/d which was approximately 2,300 boe/d above our forecast of 73,000 – 74,000 boe/d on development capital spending of C$66.3 million. Outperformance in the quarter was driven by strong results in southwest Saskatchewan and the Deep Basin Cardium program and our ability to reduce the impact of down-time due to scheduled turnarounds. We also experienced favourable weather conditions in Saskatchewan which allowed for an earlier start to drilling operations than initially anticipated.

Q2/18 Highlights

  • Achieved record average production of 75,813 boe/d compared to 56,266 boe/d in Q2/17, an increase of 35 percent (19 percent per share). Whitecap’s oil and NGLs weighting continued to increase with Q2/18 at 85 percent to 83percent in Q2/17.
  • Realized a funds flow netback (prior to hedges) of C$34.46/boe compared to C$25.19/boe in Q2/17, a 37percent increase. Funds flow netback was C$28.49/boe compared to C$23.91/boe in Q2/17, a 19percent increase.
  • Generated funds flow for the quarter of C$196.5 million (C$0.47 per share), an increase of 61percent (42percent per share) from Q2/17. Higher production volumes and realized prices in Q2/18 resulted in significantly higher funds flow.
  • Generated significant free funds flow of C$97.5 million in the quarter which was used to reduce bank debt.
  • Invested C$66.3 million in development capital expenditures, drilling 47 (42.0 net) horizontal oil wells with a 100percent success rate.
  • Continued to lock-in economic returns through our ongoing risk management program. Whitecap currently has approximately 55percent of 2H/18, 33percent of 2019, and 8 percent of 1H/2020 crude oil production (net of royalties) hedged using a combination of swaps and costless collars. See Note 5 to the unaudited interim consolidated financial statements for further details.
  • Renewed the normal course issuer bid (“NCIB”) that allows Whitecap to purchase up to 20.9 million shares over a 12 month period commencing May 18, 2018. In Q2/18, we repurchased 0.6 million common shares at an average cost of C$8.85 per share for total consideration of C$5.6 million.
  • As part of our annual credit facility review, we transitioned from a borrowing-based structure with lending capacity redetermined on a semi-annual basis, to a financial covenant-based revolving facility with an extendible four year term governed by our existing leverage and interest coverage ratios.

To read the full announcement click here 

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