Whitecap Resources (WCP) Q1 2025 earnings summary

Executive summary

• Q1 2025 production reached 179,151 boe/d, exceeding forecasts by over 6,000 boe/d, driven by strong new well performance and resilient base production.

• The pending combination with Veren Inc. is progressing, with Competition Bureau approval received and closing expected in May 2025, creating the largest Alberta Montney and Duvernay landholder and a leading light oil producer in Saskatchewan.

• Strategic focus remains on balance sheet strength, capital discipline, and sustainable returns.

Financial highlights

• Q1 funds flow was CAD 446.3 million (CAD 0.75/share diluted), up 17% year-over-year and 7% sequentially.

• Petroleum and natural gas revenues rose to $942.2M, up from $868.3M in Q1 2024.

• Net income increased to $162.6M from $59.8M year-over-year; basic EPS $0.28 vs $0.10.

• Free funds flow after CAD 398 million in capex was CAD 48 million.

• Dividends declared were $107.2M ($0.18/share), with an annualized yield of 7.5%.

Outlook and guidance

• Updated 2025 guidance to be issued post-Veren transaction close.

• Pro forma net debt forecasted at CAD 3.5 billion at year-end, with a debt-to-annualized funds flow ratio of 1x.

• Maintenance capital and dividend fully funded at $47 WTI and $3 AECO, factoring in synergies and cost deflation.

• Long-term organic production growth targeted at 3%-5% per share, with higher growth possible at $70-$80 WTI.