Whitecap Resources (WCP) Q4 2025 earnings summary

Executive summary

• Achieved transformational growth and record annual production in 2025 through the Veren Inc. combination, increasing scale, asset quality, and profitability, with annual production reaching 307,245 boe/d (62% liquids), up 76% year-over-year and exceeding guidance by ~10,000 boe/d.

• Seamless integration of Veren assets realized annualized synergies exceeding $300 million, 43% above initial estimates, and accelerated synergy capture and structural cost improvements.

• Achieved 15% total shareholder return in 2025, including 6% production per share growth, 7% dividend yield, and 2% share repurchases, returning $929 million to shareholders.

• Ended 2025 as the seventh largest oil and gas producer in Canada, with a strong balance sheet, investment grade credit rating, and net debt to funds flow below 1.0x.

• Reserve base expanded to 2.2 billion BOE (2P), with a reserve life index over 16 years and 10,500 drilling locations.

Financial highlights

• Funds flow reached $2.95 per share, the second highest annual result, with total funds flow of $2.94–$2.95 billion and free funds flow of $888.5–$900 million.

• Q4 operating costs declined to CAD 12.24/BOE, down 11% year-over-year, and operating netback for 2025 was $29.34/boe.

• Year-end net debt was $3.4 billion, less than 1x annualized Q4 funds flow, with $1.5 billion in available liquidity.

• Dividends declared totaled $735.5–$736 million ($0.73/share), up from $433.3 million in 2024.

• Petroleum and natural gas revenues rose to $5.63 billion in 2025 from $3.67 billion in 2024.

Outlook and guidance

• 2026 production guidance is 370,000–375,000 boe/d on $2.0–$2.1 billion capital investment, with Q4/26 forecast at 380,000 boe/d.

• Plan to drill approximately 255 (231.6 net) wells in 2026 from an inventory of ~10,500 locations.

• 25% of oil and 29% of natural gas production hedged for 2026, with ongoing strategy to diversify price exposure.

• Tax rate guidance for 2026 reduced to 3–5% of funds flow, expected to rise to 5–8% post-2026 as tax pools are utilized.

• Targeting 10–15% annual total shareholder return and 3–5% per share production growth, dependent on commodity prices.