whitecap resources inc. announces closing of previously announced acquisition of strategic light oil assets and increases credit facilities

May 1, 2014

WHITECAP RESOURCES INC. ANNOUNCES CLOSING OF PREVIOUSLY ANNOUNCED ACQUISITION OF STRATEGIC LIGHT OIL ASSETS AND INCREASES CREDIT FACILITIES

CALGARY, ALBERTA – Whitecap Resources Inc. (“Whitecap” or the “Company”) (TSX: WCP) is pleased to announce that it has completed its previously announced acquisition of certain strategic light oil assets focused primarily in Whitecap’s Pembina Cardium / West Central core area, as well as at Boundary Lake in northeast B.C. and the concurrent disposition of certain Nisku natural gas production and related facilities located in the Pembina area to Keyera Corp. will be closing later today following satisfaction of the closing conditions (“the Acquisition”). On closing of the Acquisition, Whitecap will have paid $678.0 million cash which is net of customary closing adjustments and the expected proceeds from the disposition.

The acquired assets greatly enhance our sustainable dividend-growth model as they are synergistic to our current operations, accretive on all key measures and consistent with our objective of maximizing total shareholder return. The Acquisition further strengthens Whitecap’s ability to pay a long-term dividend while growing organically on a per share basis, all within internally generated cash flow.

Concurrent with closing of the Acquisition, Whitecap’s credit facilities have been increased to $1 billion from the previous $600 million. In addition, as part of the $1 billion credit facility, Whitecap has layered on an incremental $200 million of five year term debt at an effective interest rate of 4.7%. Whitecap continues to maintain considerable financial flexibility after closing of the Acquisition with more than $300 million of current unutilized borrowing capacity. 

Whitecap’s Board of Directors approved a 10.3% increase in the monthly cash dividend to $0.0625 per share from the current level of $0.0567 per share. The increase is effective for the May dividend payable on June 15, 2014.

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