Whitecap Resources Inc. · TSX:WCP
Whitecap Resources — Investor Presentation (May 2025)
36 slides from Whitecap Resources's investor presentation, May 28, 2025
Slide 1: Corporate Presentation
CORPORATE PRESENTATION A Leading Canadian Oil & Natural Gas Producer Focused on Shareholder Returns May 2025
Slide 2: Corporate Overview
2 CORPORATE OVERVIEW Alberta Saskatchewan $11.2 Billion $14.6 Billion Unconventional Market Capitalization Enterprise Value Montney & Duvernay Liquids-rich Deep Inventory 365,000 boe/d $3.2 Billion Production Annualized Funds Flow Conventional High Netback Low Decline $2.6 Billion $0.0608 per Share
Slide 3: Prudent Capital Allocation with Upside Potential
3 PRUDENT CAPITAL ALLOCATION 2025 Forecast WITH UPSIDE POTENTIAL Production • 295,000 – 300,000 boe/d (63% liquids) Capital ($MM) Funds Flow Conventional 25% • $2.6 billion ($2.63 per share) Capital Expenditures Unconventional 75% • $2.0 billion PRODUCTION (boe/d) 365,000 Funds Flow Sensitivity 297,
Slide 4: Leading Canadian Oil & Natural Gas Producer
4 LEADING CANADIAN OIL & NATURAL GAS PRODUCER 2025E PRODUCTION (boe/d)1 365 ➢ 7th Largest Canadian Oil & Gas Producer Peer 10 WCP Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 ➢ 5th Largest Canadian Natural Gas Producer 2025E NATURAL GAS PRODUCTION (mmcf/d)2 ➢ Utilize sizeable posit
Slide 5: Unconventional Montney & Duvernay Capital Allocation
5 Unconventional UNCONVENTIONAL • 2H/25 Budget Allocation: ~$800 MONTNEY & million • ~50% condensate and liquids DUVERNAY • Focus on oil-weighted and Capital Allocation CAPITAL liquids-rich natural gas with available infrastructure ALLOCATION • Duvernay • 35 (32.5 net) Kaybob wells • 15-07 gas proce
Slide 6: Conventional Capital Allocation
6 CONVENTIONAL Conventional CAPITAL • 2H/25 Budget Allocation: ~$300 ALLOCATION Capital Allocation million • 80% oil and liquids • Alberta 27% • 10 (5.2 net) wells • Build on Glauconite and 73% Cardium success • Saskatchewan • 91 (74.8 net) wells • Technical expertise and organic enhancement initiat
Slide 7: Strong Credit Profile
7 STRONG CREDIT PROFILE Investment Grade balance sheet with low Debt/Funds Flow ratios and significant liquidity $ Billion ➢ 2025 Year End net debt of ~$3.4 $5.0 $1.2 Billion Billion (1.0x Net Debt/Funds Flow) $4.0 $1.4 Billion ➢ Investment grade rating of BBB by $3.0 DBRS, Inc. $0.2 Billion $1.8 Bi
Slide 8: Prudent Balance Sheet Management
8 PRUDENT BALANCE SHEET MANAGEMENT Low leverage through commodity price cycles WTI (US$/bbl) Net Debt / Funds Flow Ratio $120.00 3.0x $100.00 2.5x Net Debt / Funds Flow $80.00 2.0x WTI (US$/bbl) $60.00 1.5x Avg. Net Debt/Funds Flow = 1.5x $40.00 1.0x $20.00 0.5x $0.00 0.0x 2013 2014 2015 2016 2017 2
Slide 9: Risk Management
9 Oil hedges Q2 2025 2H 2025 2026 RISK Production hedged 36% 31% 15% MANAGEMENT Swaps hedged (bbl/d) 39,363 41,750 22,500 Average swap price (C$/B) $102.15 $99.49 $91.55 Collars hedged (bbl/d) 10,440 12,750 5,000 Downside protection to Average collar price (C$/B) $96.32 x $106.32 $85.43 x $99.52 $70
Slide 10: Improving Capital Efficiencies and Margin Expansion
10 Corporate Savings IMPROVING CAPITAL EFFICIENCIES • Consolidation of corporate costs and AND MARGIN EXPANSION improved credit profile >$200 Million Annual Savings Capital Efficiency Improvements • Drilling and completion program $75 MM optimizations • Size and scale to drive down costs • Workflow
Slide 11: Additional Infrastructure Optimizations
11 ADDITIONAL INFRASTRUCTURE OPTIMIZATIONS Significant opportunities to increase margin MONTNEY & DUVERNAY ➢ Streamline operations for optimization of full infrastructure network ➢ Asset duration and size provides for preferential fees and access to third party infrastructure ➢ Strategic gas diversi
Slide 12: Free Funds Flow Optionality
12 FREE FUNDS FLOW OPTIONALITY Capital Allocation Priorities $3.7 B $0.8 B • Consistent focus on maintaining low leverage Balance Sheet and balance sheet flexibility Strength • Strong investment-grade credit rating and $2.0 B metrics Committed Capital Optionality • Annual dividend of $0.73 per share
Slide 13: Balanced Portfolio
13 BALANCED PORTFOLIO REDUCES RISK & MAXIMIZES RETURNS MONTNEY & DUVERNAY CONVENTIONAL SW SASK SE SASK T55 T5 T1 R14W5 R15W3 R30W1 1.5 Million 225,000 <20% 140,000 Acres of Prolific boe/d decline rate boe/d Montney & Duvernay 115,000 bbl/d liquids 112,000 bbl/d liquids 660 MMcf/d natural gas Refer t
Slide 14: Largest Landholder in the Alberta Montney
14 LARGEST LANDHOLDER IN THE ALBERTA MONTNEY • Largest landholder and third largest producer in the oil and liquids-rich Alberta Montney fairway, with extensive premium drilling inventory for future growth Gold Creek • Ownership of significant infrastructure with secured market access in place for f
Slide 15: Largest Operator in the Duvernay
15 LARGEST OPERATOR IN THE DUVERNAY • Largest operator by production and land position in the oil and liquids-rich Duvernay fairway, focused in the highly economic Kaybob Duvernay • Decades of top-tier inventory, with infrastructure in place to support development Duvernay Production (boe/d) 97,000
Slide 16: A Repeatable, High-Quality Inventory
16 A REPEATABLE, HIGH-QUALITY INVENTORY Strong economics across Montney & Duvernay assets Montney & Duvernay Premium Inventory Economics $20,000 Payout 0.8 – $17,500 1.0 Years DCE&T Costs ($mm) $9.5 – $12.3 900 – 2,000 P+P Reserves (mboe) Cum. Operating Income ($ 000's) $15,000 (20% – 55% liquids) $
Slide 17: Additional Unconventional Inventory
17 ADDITIONAL UNCONVENTIONAL INVENTORY Future upside locations INVENTORY sensitive to natural gas prices >2,200 Over 4,800 locations of Montney and Duvernay Inventory PREMIUM AVERAGE PAYOUT* INVENTORY = 1.1 Years Opportunities for inventory Primary development within enhancement core areas at Gold C
Slide 18: High Netback, Low Decline Conventional
18 HIGH NETBACK, LOW DECLINE CONVENTIONAL • High netback, low decline light oil assets across Saskatchewan • Conventional light oil portfolio generates significant, SW SASK SE SASK sustainable free funds flow for the development of Montney and Duvernay properties Conventional Production (boe/d) 140,
Slide 19: A Repeatable, High-Quality Inventory
19 A REPEATABLE, HIGH-QUALITY INVENTORY Conventional assets generate quick payouts across commodity cycles Conventional $3,500 Premium Inventory Economics Payout 0.6-0.8 years $3,000 DCE&T Costs ($mm) $1.3 – $6.5 Cum. Operating Income ($ 000's) 50 – 850 $2,500 P+P Reserves (mboe) (48% – 95% liquids)
Slide 20: Additional Conventional Inventory
20 ADDITIONAL CONVENTIONAL INVENTORY Future upside locations INVENTORY ~3,500 >6,000 locations in Inventory Opportunities for inventory enhancement PREMIUM AVERAGE PAYOUT* • Open Hole Multi-Laterals INVENTORY = 1.2 Years Primary development • Extended Reach Horizontals targeting light oil assets in
Slide 21: Why Own Whitecap
21 WHY OWN WHITECAP Strong Balance Sheet Large Resource • Low Leverage • Inventory Rich • 1.0x Debt/Funds Flow • PDP (700 Million boe), TP (1.5 Billion boe) and • Investment grade credit rating of BBB by DBRS TPP (2.3 Billion boe) reserves • Fully Funded Model • Long RLI • TPP RLI equates to 17.5 ye
Slide 22: Additional Information
22 ADDITIONAL INFORMATION
Slide 23: 2025 Guidance
23 2025 GUIDANCE Production 2025 Annual Crude oil and condensate (bbl/d) 153,000 – 155,000 NGLs (bbl/d) 32,000 – 33,000 Natural gas (mcf/d) 660,000 – 672,000 Total production (boe/d) 295,000 – 300,000 Capital Expenditures $2.0 Billion Expenses ($/boe) Royalties 14% – 15% Operating $13.50 – $14.00 Tr
Slide 24: Natural Gas Price Diversification
24 NATURAL GAS PRICE DIVERSIFICATION 15% 20% 13% 10% Future focus on price Rockies LNG diversification across North 10% America and Globally through LNG exposure 42% AECO 30% Ksi Lisims LNG Project 150 MMcf/d commitment TEP Dawn 30% 30% US West US Mid West Malin Henry Hub Current Target Fixed AECO A
Slide 25: Crude Oil Marketing
25 CRUDE OIL MARKETING Medium Oil ✓ Southwest Sask. High Netback Majority light oil pricing drives strong 12% Light Oil operating netbacks Condensate ✓ Saskatchewan ✓ Montney 25% ✓ Montney Pipeline Access 63% Our advantaged locations and firm Edmonton ✓ Duvernay ✓ Duvernay service agreements ensure
Slide 26: Management Track Record of Execution
26 MANAGEMENT TRACK RECORD OF EXECUTION Organic growth enhanced by strategic acquisitions 12% CAGR per share 11% CAGR per share 13% CAGR per share Funds Flow Production TPP Reserves $3,000 $2,500 350,000 1,400,000 $2,000 300,000 1,200,000 250,000 1,000,000 $1,500 200,000 Boe/d 800,000 Mboe $ million
Slide 27: Disciplined Return of Capital to Shareholders
27 DISCIPLINED RETURN OF CAPITAL TO SHAREHOLDERS $8.00 Cumulative Dividend & NCIB ($/sh) $7.06 $7.00 $2.4 billion $748 million $6.00 Total dividends paid ($5.75/share) Share repurchases completed $5.00 $/share (Jan. 2013 - Apr. 2025) (May 18, 2017 – May 11, 2025) $4.00 $3.00 $2.00 $1.00 $0.61 $0.00
Slide 28: TSX: WCP
TSX: WCP www.wcap.ca InvestorRelations@wcap.ca May 28, 2025
Slide 29: Slide Notes
29 SLIDE NOTES Slide 2 Slide 9 1. Market Capitalization and Enterprise Value calculated based on fully diluted common shares outstanding as at May 12, 2025, 1. Hedge positions current to May 12, 2025. a share price of $9.00 and year end net debt of $3.4 billion. Note: 2. Market Capitalization and En
Slide 30: Slide Notes
30 SLIDE NOTES Slide 18 Slide 26 1. See Oil and Gas Advisory in the Advisories for additional information on production and drilling locations. 1. Funds flow is a capital management measure. See Specified Financial Measures in the Advisories. 2. See Oil and Gas Advisory in the Advisories for additio
Slide 31: Advisories
31 ADVISORIES Special Note Regarding Forward-Looking Statements and Forward-Looking Information the breakdown by unconventional and conventional assets and location type; the forecast for number of wells budgeted to be drilled in 2025; our beliefs regarding our technical expertise and organic enhanc
Slide 32: Advisories
32 ADVISORIES buyback policy and, as a result, future cash dividends and/or share buybacks, could be reduced or suspended entirely. Our actual results, Special Note Regarding Forward-Looking Statements and Forward-Looking Information (continued) performance or achievement could differ materially fro
Slide 33: Advisories
33 ADVISORIES Oil and Gas Advisory Reserves This presentation contains metrics commonly used in the oil and natural gas industry which have been prepared by management, such as All reserve references in this presentation are "Company share reserves". Company share reserves are our total working inte
Slide 34: Advisories
34 ADVISORIES Drilling Locations Production, Initial Production Rates & Product Type Information This presentation discloses drilling inventory in two categories: (i) booked locations (proved and probable); and (ii) unbooked References to petroleum, crude oil , NGLs, natural gas and average daily pr
Slide 35: Advisories
35 ADVISORIES Specified Financial Measures "Market capitalization" is a supplementary financial measure and is calculated as the current share price multiplied by the number of shares outstanding at the end of the period. Management believes that market capitalization provides a useful This presenta
Slide 36: Research Coverage
36 RESEARCH COVERAGE • ATB Capital Markets • National Bank Financial • BMO Capital Markets • Peters & Co. • Canaccord Genuity • Raymond James • CIBC World Markets • RBC Capital Markets • Desjardins Capital Markets • Scotiabank Global • Haywood Securities • TD Securities • Jefferies
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