Whitecap Resources (WCP) Investor Day 2024 summary

Strategic Vision and Growth Plans

• Targeting 3%-8% annual organic production growth, aiming to reach 215,000 BOE/d by 2029, with upside from accelerated unconventional development.

• Balanced capital allocation between Montney/Duvernay and conventional assets, with a focus on maintaining over 60% oil/liquids weighting and 47% allocated to Montney & Duvernay.

• Five-year plan projects CAD 10B in funds flow, CAD 6B in capital investment, and CAD 4B in free funds flow.

• Approximately CAD 3B of free funds flow to be returned to shareholders via dividends and buybacks, with the remainder reducing debt.

• Acquisitions remain a core strategy, with disciplined focus on enhancing per-share cash flow, inventory depth, and value creation through major deals.

Asset Portfolio and Operational Highlights

• Montney and Duvernay assets provide significant growth runway, with production expected to double to 100,000 BOE/d and potential for 120,000 BOE/d by 2029.

• Inventory of over 2,400 unconventional well locations, with less than 10% consumed in the five-year plan and only 15% booked, supporting long-term growth.

• Major infrastructure projects, such as Lator, are planned to support future growth, with expansion to 85,000 BOE/d by 2027 and flexibility to expand as needed.

• Efficiency gains in drilling and completions have reduced costs and improved capital efficiency, with water use per well also significantly reduced.

• Alberta and Saskatchewan conventional assets provide low decline, high netback light oil production and strong free cash flow.

Financial Priorities and Shareholder Returns

• Strong balance sheet with net debt forecast below CAD 1.2B by year-end and a target leverage ratio below 1x through cycles.

• Dividend yield of ~7% is fully funded at $50 WTI, with annual dividend of CAD 0.73/share and focus on share buybacks for per-share growth.

• $2.2B in base dividends and $2.2B in share repurchases planned over five years, with $1.1B in unallocated capital for further returns or consolidation.

• Stress-tested financial model supports continued returns and growth even at lower commodity prices.

• Marketing strategy leverages pipeline access, diversified gas sales, and growing exposure to LNG and premium markets.