Whitecap beats Q2 oil and gas revenue estimates

Overview

• Whitecap Q2 oil & gas rev beats analysts' expectations, driven by operational performance

• Company's production exceeds internal forecasts, supported by asset-level outperformance

• Whitecap maintained strong balance sheet, net debt to annualized funds flow ratio at 1.0 times

Outlook

• Whitecap expects 2025 production at high end of 295,000-300,000 boe/d

• Company forecasts H2 2025 production of 363,000-368,000 boe/d

• Whitecap maintains 2025 capital budget of $2.0 bln

• Company anticipates capital efficiency improvements within 6-12 months

Result Drivers

• PRODUCTION OUTPERFORMANCE - Asset level outperformance and timing of new production additions led to production exceeding internal expectations

• STRATEGIC COMBINATION - Successful integration with Veren Inc. enhanced scale and inventory, positioning Whitecap as a leading operator

• BALANCE SHEET STRENGTH - Asset dispositions and investment-grade note issuance contributed to a robust balance sheet

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Whitecap Resources Inc is C$13.00, about 22.7% above its July 22 closing price of C$10.05

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nCNW5hrlna