Business
Whitecap Resources Inc. Strengthens Balance Sheet - Adjusts 2019 Capital Expenditures
Whitecap Resources Inc. Strengthens Balance Sheet - Adjusts 2019 Capital Expenditures ...
About this update from Whitecap Resources Inc.
[{"type":"text","content":"\n\n\n\nWhitecap Resources Inc. Strengthens Balance Sheet - Adjusts 2019 Capital Expenditures\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Aug. 26, 2019\n\n\n\nCALGARY, Aug. 26, 2019 /CNW/ - Whitecap Resources Inc. (\"Whitecap\" or the \"Company\") (TSX: WCP) announces that it has elected to exercise a more cautious approach for the balance of 2019 by reducing the Company's 2019 second half capital expenditures program by 17% to $250 million from $300 million to provide greater optionality and improve near term free funds flow. Our full year 2019 capital expenditure program is now anticipated to be $400 million which is $50 million lower than our previous guidance of $450 million.\nOur 2019 average production guidance of 70,000 to 72,000 boe/d remains unchanged despite the reduction in capital expenditures. We now anticipate growing production 6% to 74,000 to 75,000 boe/d in the fourth quarter of 2019 from the second quarter average production of 70,611 boe/d. On strip pricing, anticipated 2019 free funds flow is approximately $135 million with a total payout ratio of 80% compared to $95 million and a total payout ratio of 86% prior to the reduced capital program.\nThe objective of our 2019 budget was to protect our balance sheet, reduce net debt and maintain the current dividend by having a disciplined first half 2019 capital program and a flexible second half 2019 program. In the first half of 2019, we were able to reduce net debt by $106.6 million and not only maintain the dividend but provide a modest but sustainable 5.6% increase for our shareholders. Our continued disciplined approach to capital spending in the second half of 2019 will further strengthen our balance sheet going into a period of significant global economic uncertainty. We believe the reduction to our capital program is prudent given the continuing U.S. / China trade wars and recessionary concerns in 2020. \nWe applaud the Alberta Government's recent decision to extend crude oil curtailments by one year along with raising the amount of a producer's output that is exempt...