Update shared on29 May 2025
Fair value Increased 2.77%Veren Acquisition Offers Scale And Diversification
- Whitecap closed Veren acquisition two weeks ago, creating one of the largest oi-weighted producers in Canada with a combined output exceeding 370,000 boe/day, giving the company greater resilience and optionality across commodity cycles.
- With a pro forma base of 20,000 drilling locations and more than 10 years of inventory at current development pace, Whitecap can achieve sustainable, long-term growth.
- The company expects meaningful cost efficiencies post-merger, including $50–$70 million in annual G&A and operational savings. Early integration efforts are already underway, with a focus on capturing value within the first 12 months of combined operations.
- One weakness remains in near-term debt metrics due to merger-related adjustments and elevated capital programs. However, management acknowledged balance sheet commitments and plans to prioritize debt repayment in the second half of the year through funds flow.
Q1 Production Delivers Despite Downtime
- Whitecap Resources posted record average production of 179,051 boe/d in Q1 2025, exceeding guidance despite downtime due to extreme cold. Liquids accounted for 76% of output.
- The company generated C$435 million ($315 million) in funds flow during the quarter, while maintaining capital discipline with C$293 million ($212 million) in expenditures. Free funds flow of C$142 million ($102 million) positioned Whitecap well ahead of its annual budget targets.
- Firm drilled 86 wells, with 74 brought on production across several high-impact regions including Montney, Kakwa and Southeast Saskatchewan. These assets delivered above-average type curves, validating Whitecap’s technical models and portfolio quality.
- Despite weather-related disruptions and power outages in the Montney, strong well performance and cycle time improvements supported results. The Kakwa area in particular saw better-than-expected liquids yields and well productivity, reinforcing its importance in Whitecap’s long-term strategy.
Disclaimer
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