Whitecap Resources Inc. · TSX:WCP
Whitecap Resources — Investor Presentation (February 2025)
52 slides from Whitecap Resources's investor presentation, Feb 19, 2025
Slide 1: Corporate Presentation
CORPORATE PRESENTATION Capital Discipline Driving Sustainable Growth February 2025
Slide 2: Corporate Overview
2 CORPORATE OVERVIEW $5.8 Billion $6.8 Billion Market Capitalization Enterprise Value 178,000 boe/d $1.65 Billion 2025 Production Guidance 2025 Funds Flow $1.15 Billion $0.0608 per Share 2025 Capital Investment Monthly Dividend ($0.73 annually) $933 Million 0.3x Year End 2024 Net Debt Debt/EBITDA Re
Slide 3: Operational Highlights
3 13% production per share growth • 2024 Production of 174,255 boe/d • 2024 5% above original guidance of 165,000 boe/d OPERATIONAL Type Curve Outperformance HIGHLIGHTS • Higher crude oil & condensate production • Unconventional: Montney at Musreau & Duvernay at Kaybob • Conventional: Glauconite in
Slide 4: Financial Highlights
4 2024 Funds Flow of $1.6 billion ($2.73/share) 2024 • Free funds flow of $501 million ($0.84/share) FINANCIAL HIGHLIGHTS Returned 112% of Free Funds Flow • Over $560 million returned to shareholders • Base dividends of $433 million ($0.73/share) • Share repurchases of $130 million Balance Sheet Str
Slide 5: 2024 Reserves & Net Present Values
5 2024 RESERVES & NET PRESENT VALUES 2024 Reserves (MMboe) Net Present Value (10) $13.1 Billion 1,203.2 $9.1 Billion 806.1 $5.4 Billion 367.1 PDP TP TPP PDP TP TPP Refer to Slide Notes and Advisories
Slide 6: 2024 Reserve Report Highlights
6 2024 RESERVE REPORT HIGHLIGHTS Per Share Growth Recycle Ratios Production Replacement 13% 3.8x 12% 12% 3.3x 154% 2.7x 123% 112% 2.1x 2.1x 1.7x 5% 4% 4% PDP TP TPP PDP TP TPP PDP TP TPP Per Share Growth Debt-Adjusted F&D FD&A Demonstrating Per Share Growth & Profitability Across Reserve Categories
Slide 7: Disciplined 2025 Budget
7 DISCIPLINED 2025 BUDGET
Slide 8: Prudent Capital Allocation with Upside Potential
8 PRUDENT CAPITAL ALLOCATION 2025 Guidance WITH UPSIDE POTENTIAL Production (3% – 5% per share) Capital ($MM) • 176,000 – 180,000 boe/d (63% liquids) Capital Expenditures Conventional $575 $575 • $1.1 – $1.2 billion Unconventional Financial Highlights Production ~185,000 boe/d $1.65 billion of Funds
Slide 9: 2025 Funds Flow Sensitivity
9 2025 FUNDS FLOW SENSITIVITY $1.9 Billion $115 $1.7 Billion $35 $20 $1.5 Billion -$20 -$35 -$115 US$60/bbl WTI US$70/bbl WTI US$80/bbl WTI $2.00/GJ AECO $2.00/GJ AECO $2.00/GJ AECO Downside ($MM) Upside ($MM) WTI (-/+ US$5/bbl) AECO (-/+ $0.50/GJ) FX (+/- $0.01 CAD/USD) Refer to Slide Notes and Adv
Slide 10: Balanced Capital Allocation: Unconventional
10 Unconventional BALANCED • 2025 Budget Allocation: ~$575 million CAPITAL • ~40% condensate and liquids • Duvernay ALLOCATION • 20 (20.0 net) Kaybob wells Capital Allocation STRATEGY • 15-07 gas processing facility full by second half of 2025 • Montney 40% • 4 (4.0 net) Musreau wells 60% • Maintain
Slide 11: Balanced Capital Allocation: Conventional
11 Conventional BALANCED • 2025 Budget Allocation: ~$575 million CAPITAL • 75% – 80% oil and liquids • Alberta ALLOCATION Capital Allocation • 30 (23.7 net) wells STRATEGY 15% • Glauconite monobore design to reduce costs • Western Saskatchewan 15% 40% • 100 (98.8 net) wells • Longer laterals to impr
Slide 12: Balance Sheet Strength
12 BALANCE SHEET STRENGTH Investment Grade balance sheet with low Debt/EBITDA ratios and significant liquidity $ Million Unsecured Credit Facility Sr. Unsecured Notes Unutilized Capacity $2,800.0 $1.6 Billion Current net debt of ~$1.0 Billion $2,400.0 (0.5x Debt/EBITDA) $2,000.0 $1,600.0 Well below
Slide 13: Prudent Balance Sheet Management
13 PRUDENT BALANCE SHEET MANAGEMENT Low leverage through commodity price cycles WTI (US$/bbl) Debt / EBITDA Ratio $120.00 2.5x $100.00 2.0x Debt / EBITDA $80.00 WTI (US$/bbl) 1.5x $60.00 Avg. Debt/EBITDA = 1.4x 1.0x $40.00 0.5x $20.00 $0.00 0.0x 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 14: Risk Management
14 RISK Oil hedges 2025 2026 MANAGEMENT Production hedged 27% 25% Swaps hedged (bbl/d) 23,471 22,500 Average swap price (C$/B) $102.17 $91.55 Downside protection to Collars hedged (bbl/d) - - support dividend and maintenance production Average collar price (C$/B) - - Target 25% - 35% hedged Natural
Slide 15: Premium Assets
15 PREMIUM ASSETS
Slide 16: Balanced Portfolio Reduces Risk and Maximizes Returns
16 BALANCED PORTFOLIO REDUCES RISK AND MAXIMIZES RETURNS Montney/Duvernay Conventional 10% – 15% Annual Growth ~20% Base Decline Area optionality supported by new Lowers our maintenance capital infrastructure requirements Alberta Saskatchewan Liquids Rich Assets High Netback Light Oil High condensat
Slide 17: Total Resource Potential
17 TOTAL RESOURCE POTENTIAL 6,270 (5,461 net) boe/d Total Drilling Locations 600,000 550,000 500,000 500,000 2.5 million net acres 400,000 Including 700,000 acres of Montney & Duvernay Rights 300,000 275,000 215,000 200,000 174,255 100,000 550,000 boe/d 0 Long Term Organic Production Potential 2024
Slide 18: Montney & Duvernay
18 MONTNEY & Musreau T65 DUVERNAY T64 Karr T63 Simonette Kakwa T62 700,000 ACRES Kaybob • Montney & Duvernay rights T61 • Second largest Alberta Montney Lator acreage T60 T59 2,447 LOCATIONS • Highly economic Montney & Resthaven Berland T58 Duvernay locations in inventory T57 16% BOOKED • Limited in
Slide 19: Significant Growth Potential
19 • Near term growth focus at Kaybob, Kakwa and Musreau SIGNIFICANT GROWTH • Medium term growth driven by Lator POTENTIAL • Option to accelerate growth in late 2026 • Long term growth driven by Resthaven boe/d Kaybob Other Montney Kakwa Musreau Lator Accelerated Growth 140,000 120,000 boe/d WELLS D
Slide 20: Montney & Duvernay Inventory
20 TIER 3 MONTNEY & Future upside locations sensitive to natural gas prices DUVERNAY 1,218 INVENTORY 2,447 locations Decades of Top Tier Inventory 5 Year Plan consumes TIER 2 AVERAGE <10% of Montney and 523 Economic development with PAYOUT optimization opportunities = 1.4 Years Duvernay inventory TI
Slide 21: A Repeatable, High-Quality Inventory
21 A REPEATABLE, HIGH-QUALITY INVENTORY 25,000 Payout KAKWA MUSREAU LATOR KAYBOB 0.6-0.9 years DCE&T Costs ($mm) $11.20 $11.20 $11.20 $12.30 20,000 Cum. Operating Income ($ 000's) 1,000 - 1,600 1,000 - 1,300 1,000 - 2,000 1,100 - 1,650 P+P Reserves (mboe) (25-45% liquids) (45-55% liquids) (20-50% li
Slide 22: Lator – An Organic Growth Story Coming in 2026
22 LATOR – AN ORGANIC GROWTH STORY COMING IN 2026 LATOR DEVELOPMENT PROFILE 300 – 450 Phase 2 Expansion Inventory locations to Total ~85,000 boe/d backstop growth profile >25 years Of stay-flat inventory at Phase 1 capacity Phase 1 35,000 - 40,000 boe/d 85,000 boe/d Facility onstream late Ability to
Slide 23: Resthaven Montney
23 RESTHAVEN MONTNEY T63 T62 ~1,000 Locations Kakwa Identified across >300,000 acres of prolific, high-deliverability gas-weighted lands, with no Lator T61 development within our five year plan T60 T59 Technical and economic Resthaven T58 evaluation underway Capture efficiencies and optimization fro
Slide 24: Strategic Infrastructure
24 STRATEGIC FACILITY CAPACITY COST TIMING INFRASTRUCTURE Kaybob 15-07 36,500 boe/d In service (50% owned by PGI) (32% liquids) Established Partnership with Pembina Gas 20,000 boe/d Musreau 05-09 In service Infrastructure to fund future (50% owned by Topaz) (65% liquids) strategic projects Whitecap
Slide 25: Partial Infrastructure Monetization
25 PARTIAL INFRASTRUCTURE MONETIZATION Musreau Facility & Kaybob Complex • 50% working interest disposed for $520 million Enhanced processing, transportation, proceeds fractionation and marketing fees from PGI strategic partnership and lower interest expense result in minimal funds flow impact Strat
Slide 26: Conventional Overview
26 CONVENTIONAL Alberta Saskatchewan OVERVIEW Low Decline & High Netback Light Oil Assets 2.4 million acres Significant FreeWEYBURN Cash WSK Flow Generation 3,823 drilling locations Foundation that supports Conventional Land History of Strong long term sustainability Execution and Optimization of Ac
Slide 27: Conventional Inventory
27 TIER 3 Future upside locations CONVENTIONAL 1,491 INVENTORY 3,823 locations Well defined and derisked TIER 2 AVERAGE PAYOUT inventory with optimization 663 Economic development with = 1.4 Years optimization opportunities upside TIER 1 AVERAGE PAYOUT 5 Year Plan consumes Primary development = 0.8
Slide 28: A Repeatable, High-Quality Inventory
28 A REPEATABLE, HIGH-QUALITY INVENTORY 12,000 Payout FROBISHER VIKING GLAUCONITE 0.5-0.8 years 10,000 DCE&T Costs ($mm) $1.60 $1.30 $6.50 Cum. Operating Income ($ 000's) P+P Reserves (mboe) 93 51 864 8,000 (95% Liquids) (73% Liquids) (48% Liquids) FROBISHER 6,000 IP90 (boe/d) 142 114 756 VIKING (95
Slide 29: 5 Year Plan
29 5 YEAR PLAN
Slide 30: 5 Year Plan
30 Accelerated Growth 235,000 boe/d Montney & Duvernay Conventional 215,000 boe/d 173,000 boe/d 5 YEAR PLAN 100,000 boe/d 5% Average Annual Growth Rate to 215,000 boe/d $10 Billion Funds Flow 115,000 boe/d Q1/25 Q3/25 Q1/26 Q3/26 Q1/27 Q3/27 Q1/28 Q3/28 Q1/29 Q3/29 $6 Billion Capital Investment FREE
Slide 31: Torque to Oil Prices
31 5 Year Free Funds Flow TORQUE TO $5.1 Billion OIL PRICES $4.0 Billion 85% – 90% of revenue impacted by oil prices $2.7 Billion Increased returns to shareholders at higher oil prices US$65/bbl WTI US$75/bbl WTI US$85/bbl WTI $3.00/GJ AECO $3.00/GJ AECO $3.00/GJ AECO Refer to Slide Notes and Adviso
Slide 32: Natural Gas Optionality
32 NATURAL GAS OPTIONALITY $1 Billion Increase 5 Year Cumulative Revenue mcf/d $ Billion 600,000 $4.3 Billion 550,000 500,000 $4.0 $3.3 Billion 400,000 370,000 $3.0 300,000 $2.4 Billion 200,000 $2.0 100,000 0 $1.0 2024 Production 5 Year $2.50/GJ $3.50/GJ $4.50/GJ AECO Timing capital projects into lo
Slide 33: Upside Potential to the 5 Year Plan
33 CAPITAL EFFICIENCY OPERATING COST IMPROVEMENTS REDUCTIONS UPSIDE • Well Design (spacing, • Utilizing technological POTENTIAL • benching, lateral lengths, etc.) Development Optimization • advancements Focus on cost control and TO THE 5 • Focus on cost control and take advantage of scale efficient
Slide 34: Additional Information
34 ADDITIONAL INFORMATION
Slide 35: Whitecap Value Creation
35 WHITECAP VALUE CREATION Low Debt / EBITDA Disciplined capital ratio with significant undrawn allocation improving capital capacity efficiency and profitability Maximize Balance Sheet Resource Strength Potential Shareholder Value Returns to Strategic Shareholders Opportunities Sustainable Strength
Slide 36: Management Track Record of Execution
36 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 $2,500 $2,000 200,000 1,400,000 1,200,000 $1,500 150,000 1,000,000 Boe/d 800,000 Mboe $ million $1,000 100,000 600,000
Slide 37: Disciplined Return of Capital to Shareholders
37 DISCIPLINED RETURN OF CAPITAL TO SHAREHOLDERS $8.00 Cumulative Dividend & NCIB ($/sh) $7.00 $6.81 $2.2 billion $742 million $6.00 Total dividends paid ($5.51/share) Share repurchases completed $5.00 $/share (Jan. 2013 - Dec. 2024) (May 18, 2017 - Dec. 31, 2024) $4.00 $3.00 $2.00 $1.00 $0.61 $0.00
Slide 38: Crude Oil Marketing
38 CRUDE OIL MARKETING CRUDE OIL FINANCIAL EXPOSURE HIGH NETBACK 11% 10% Majority light oil pricing drives strong operating netbacks of $40/boe 21% 28% PIPELINE ACCESS Our advantaged locations and firm service agreements ensure reliable pipeline egress for our entire Edmonton production portfolio 68
Slide 39: Natural Gas and NGL Marketing
39 NATURAL GAS AND NGL NATURAL GAS MARKETING FINANCIAL EXPOSURE 5% 7% 20% MARKET ACCESS Rockies LNG Established term transportation 10% agreements and leveraged dual- connected facilities 59% AECO 40% DIVERSIFICATION Future focus on price diversification across North America and globally through LNG
Slide 40: Carbon Capture, Utilization & Storage Expertise
40 CARBON CAPTURE, Weyburn Project UTILIZATION, & Future Projects To date 41 MT STORAGE EXPERTISE Annual Rate ~2 MT/year Carbon Hub Sequestration Opportunity Total Storage Capacity 115 MT Saskatchewan ~4 MT/year Leader in CO2 Remaining Injection Life 35+ Years Lamont ~3 MT/year Sequestration Rolling
Slide 41: Reducing Our Water Usage and Securing Availability
41 REDUCING OUR WATER USAGE AND SECURING AVAILABILITY MONTNEY AND DUVERNAY WATER INTENSITY (m3/tonne) T65 T64 10 DUVERNAY T63 MONTNEY T62 8 -27% T61 Duvernay Water Usage T60 6 vs pre-2021 T59 T58 4 -42% Montney/Duvernay Land Existing Reservoir (1.3MM m3 total) T57 Montney Water Usage Planned Reservo
Slide 42: TSX: WCP www.wcap.ca
TSX: WCP www.wcap.ca InvestorRelations@wcap.ca February 19, 2025
Slide 43: Slide Notes
43 SLIDE NOTES Slide 2 Slide 6 1. Market capitalization calculated based on current shares outstanding as at December 31, 2024, and 7.2 million share awards 1. See Oil and Gas Advisory in the Advisories for additional information on recycle ratio and production replacement. outstanding and a share p
Slide 44: Slide Notes
44 SLIDE NOTES Slide 21 1. See Oil and Gas Advisory in the Advisories for additional information on payout, production, profit to investment, and Slide 14 (cont'd) reserves. 2. Full hedge positions by product are: 2. See Specified Financial Measures in the Advisories for additional information on NP
Slide 45: Slide Notes
45 SLIDE NOTES Slide 27 Slide 36 1. Gross locations depicted. 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 additional information on drilling locations and payout. 2. See Oil and Gas Advisory in t
Slide 46: Advisories
46 ADVISORIES Special Note Regarding Forward-Looking Statements and Forward-Looking Information This presentation contains forward-looking statements and forward-looking information (collectively, "forward-looking information") within the amount of conventional inventory we consume in our 5 year pla
Slide 47: Advisories
47 ADVISORIES Special Note Regarding Forward-Looking Statements and Forward-Looking Information (continued) volumes and net present values thereof; anticipated timing and results of capital expenditures/development capital, including as royalties and environmental (including emissions and "greenwash
Slide 48: Advisories
48 ADVISORIES Oil and Gas Advisory Special Note Regarding Forward-Looking Statements and Forward-Looking Information (continued) Reserves and Net Present Value All reserve references in this presentation are "Company share reserves". Company share reserves are our total working The actual results of
Slide 49: Advisories
49 ADVISORIES Type Curve "Development capital" is a non-GAAP financial measure used in the determination of F&D costs and FD&A costs, which are non-GAAP ratios. The most directly comparable GAAP measure to development capital is expenditures on property, plant, and equipment. This presentation refer
Slide 50: Advisories
50 ADVISORIES Production, Initial Production Rates & Product Type Information References to petroleum, crude oil , NGLs, natural gas and average daily production in this presentation refer to the light and medium crude oil, tight crude oil, conventional natural gas, shale gas and NGLs product types,
Slide 51: Advisories
51 ADVISORIES Specified Financial Measures This presentation includes various specified financial measures, including non-GAAP financial measures, non-GAAP ratios, capital "Net Debt" is a capital management measure that management considers to be key to assessing the Company's liquidity. Refer to ma
Slide 52: Research Coverage
52 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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