News Releases

WHITECAP RESOURCES INC. ANNOUNCES PARTIAL INFRASTRUCTURE DISPOSITIONS FOR $520 MILLION, FID ON NEW LATOR FACILITY AND STRATEGIC PARTNERSHIP WITH PEMBINA GAS INFRASTRUCTURE

CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to announce a 50% working interest sale of our Musreau 05-09 facility (the “Musreau Facility”) to Topaz Energy Corp (“Topaz”) for gross proceeds of $100 million. Whitecap also announces a strategic infrastructure partnership with Pembina Gas Infrastructure ("PGI") which includes a 50% working interest sale of our 15-07 Kaybob Complex (the “Kaybob Complex”) and funding of Whitecap’s Montney facility at Lator (the “Lator Facility”) for gross proceeds of $420 million.

Topaz Transaction

Whitecap and Topaz have executed a purchase and sale agreement whereby Topaz acquired a 50% working interest in the Musreau Facility for gross proceeds of $100 million. Whitecap retains operatorship and the remaining 50% working interest. In addition, Whitecap has entered into a long-term fixed take-or-pay commitment with Topaz to access their working interest capacity. The transaction closed on June 24, 2024.

Whitecap completed the commissioning and start-up of our Musreau Facility which includes natural gas compression capacity of 43,000 mcf/d and condensate stabilization capacity of 12,500 bbl/d. It was completed in mid-March, ahead of schedule and under budget, and after bringing on our first eight wells, the facility throughput has ramped up to 14,000 boe/d. Our Montney production at Musreau is liquids-rich, with wells that will produce upwards of 75% liquids from two Montney benches, and the area represents an important development for Whitecap. We plan to reach capacity at the facility by the end of 2024 after we bring on a total of 8 additional wells.

PGI Strategic Partnership

Whitecap and PGI have entered into a purchase and sale agreement whereby PGI will acquire a 50% working interest in the Kaybob Complex, which includes natural gas processing capacity of 165,000 mcf/d and condensate stabilization capacity of 15,000 bbl/d. Whitecap will retain operatorship and the remaining 50% working interest in the Kaybob Complex. In addition, at the closing of the transaction Whitecap will enter into long-term fixed take-or-pay commitment with PGI to access their working interest capacity. Closing of the transaction is expected to occur in the third quarter of 2024 and is subject to the satisfaction or waiver of customary closing conditions, including all required regulatory approvals.

We have also reached a positive final investment decision on our Lator Facility. The Lator area represents the next stage of meaningful growth for Whitecap with 90,000 acres and up to 450 identified top tier Montney locations¹. Full-scale development of Lator is expected to commence in 2026 with facility start up in late 2026 to early 2027 and a ramp up to facility capacity by late 2029. Whitecap will design, construct and operate the future Montney facility at Lator and PGI will fund 100% of the new battery and gathering lateral which includes natural gas compression capacity of approximately 150,000 mcf/d and condensate stabilization capacity of 10,000 – 15,000 bbl/d. In exchange, Whitecap will enter into long-term fixed take-or-pay commitments for priority access to the Lator Facility and will enter into an area of dedication.

Our partnership with PGI also allows Whitecap to access PGI and Pembina's vast network of infrastructure and midstream assets across Alberta. Whitecap has secured additional access, enhanced contract terms and highly competitive fees on processing, transportation, fractionation and marketing for our Montney and Duvernay development. These enhancements including access to a deep cut processing facility will enhance our netback and well economics in the area.

Financial Summary

The long-term take-or-pay commitments, synergies from our strategic partnership with PGI, interest expense savings and tax adjustments have a minimal net impact to our forecasted 2025 and long-term funds flow^2,3.

Outlook

Whitecap’s balance sheet is in excellent shape and will be further strengthened with proceeds from the partial sale of the infrastructure assets. Given the significant strength in our balance sheet, we expect to allocate approximately $200 million in the second half of the year towards share repurchases. We anticipate this will reduce our common shares outstanding by approximately 3 percent while still maintaining net debt³ below $1 billion⁴ (0.6x Debt/EBITDA⁵), with approximately $1.9 billion of unused credit capacity, providing us with capital allocation options to continue to grow our business.

On behalf of our employees, management team and Board of Directors, we would like to thank our shareholders for their continued support and look forward to updating them on our progress for the remainder of the year.

Notes
¹   Disclosure of drilling locations in this press release consists of proved, probable, and unbooked locations and their respective quantities on a gross and net basis as disclosed herein. Refer to Drilling Locations in this press release for additional disclosure.
²   Based on the following commodity pricing and exchange rate assumptions for 2025 and the 2025-2029 period: US$75/bbl WTI, $3.00/GJ AECO, USD/CAD of $1.37.
³    Funds flow and net debt are capital management measures. Per boe figures are supplementary financial measures. Refer to the Specified Financial Measures section in this press release for additional disclosure and assumptions.
⁴   Based on the following strip commodity pricing and exchange rate assumptions for the remainder of 2024: US$80/bbl WTI, $2.00/GJ AECO, USD/CAD of $1.37.
⁵   Debt to EBITDA ratio is a specified financial measure that is calculated in accordance with the financial covenants in our credit agreement.

For further information:

Grant Fagerheim, President & CEO
or
Thanh Kang, Senior Vice President & CFO

Whitecap Resources Inc.
3800, 525 – 8^th Avenue SW
Calgary, AB T2P 1G1
(403) 266-0767
www.wcap.ca
InvestorRelations@wcap.ca

Refer to full press release for forward-looking statements and advisories.