whitecap resources inc. announces increase to credit facilities, provides operational update and increases 2013 guidance
October 15, 2013
WHITECAP RESOURCES INC. ANNOUNCES INCREASE TO CREDIT FACILITIES, PROVIDES OPERATIONAL UPDATE AND INCREASES 2013 GUIDANCE
CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to announce a 15 percent increase to our credit facilities from $520 million to $600 million in addition to providing shareholders with an update on our successful capital execution thus far in 2013. Our third quarter operational results have once again exceeded expectations with average production over 1,000 boe/d above our 20,000 boe/d production forecast providing us with the opportunity to increase our average 2013 production guidance of 19,200 boe/d to 19,500 boe/d.
Based on our mid-year interim reserves review, our lenders have agreed to increase our credit facility 15 percent to $600 million from the previous $520 million. In addition, as part of our $600 million credit facility, our lenders have agreed to term out $200 million of our core debt for five years at an effective interest rate of 5.325 percent maturing on October 2, 2018. The increase to our credit capacity and our ability to secure $200 million of term debt financing at an attractive long term interest rate provides more predictability to our free cash flow, strengthens our financial flexibility and increases the overall sustainability of our dividend-growth model.
Recent operational results in each of our core areas continue to be very strong and we anticipate a positive independent 2013 year-end reserves evaluation. The 2013 year-end borrowing base review is scheduled for May 31, 2014.
Whitecap was very active in the field drilling a total of 35 (27.0 net) wells in the third quarter of 2013 while spending approximately $65.5 million in development capital. Year to date we have drilled a total of 90 (68.1 net) wells with a 100 percent success rate. The success we have achieved optimizing our field operations, in combination with our development drilling program, continues to provide our shareholders with sustainable dividends and per share growth all funded by internally generated cash flow.
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