whitecap resources inc. announces closing of previously announced acquisition of high quality low decline oil assets

June 23, 2016

WHITECAP RESOURCES INC. ANNOUNCES CLOSING OF PREVIOUSLY ANNOUNCED ACQUISITION OF HIGH QUALITY LOW DECLINE OIL ASSETS

CALGARY, ALBERTA – Whitecap Resources Inc. (“Whitecap” or the “Company”) (TSX: WCP) is pleased to announce that it has now closed its previously announced acquisition of premium oil assets in southwest Saskatchewan for cash consideration of $595 million (the “Acquisition”).

Since Whitecap announced the Acquisition on May 10, 2016, crude oil prices have increased by 12% to approximately US$50/bbl WTI, further increasing our projected free funds flow estimates. The Acquisition is highly accretive on all key operational and financial measures and the shallow decline assets provide additional production stability, enhancing our ability to grow production and funds flow per share while providing a sustainable dividend to shareholders.

We are on track to meet our 2016 annual production guidance of 45,300 boe/d (78% oil and NGLs) which generates $368 million of funds flow based on a cash netback of $22.20/boe. After development capital spending of $175 million and dividend payments of $117 million, Whitecap will have $76 million of free funds flow in 2016. In 2017 based on US$55/bbl WTI, we anticipate growing funds flow per share by 11% and production per share by 19% with a total payout ratio of 66%.

With the closing of the Acquisition, Whitecap’s borrowing base has a lending value of approximately $1.3 billion, however, we have elected to maintain the credit facility at the current $1.1 billion. Whitecap has considerable financial flexibility with estimated year end net debt of $830 million providing $270 million of unutilized credit capacity and a Q4 net debt to funds flow ratio of 1.8x.

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