News Releases

WHITECAP RESOURCES INC. ANNOUNCES RECORD ANNUAL PRODUCTION AND STRONG 2024 RESULTS

CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to report its operating and audited financial results for the three months and year ended December 31, 2024.

Selected financial and operating information is outlined below and should be read with Whitecap’s audited annual consolidated financial statements and related management’s discussion and analysis for the three months and year ended December 31, 2024 which are available at www.sedarplus.ca and on our website at www.wcap.ca.

Financial ($ millions except for share amounts)	Three Months ended Dec. 31		Year ended Dec. 31
	2024	2023	2024	2023
Petroleum and natural gas revenues	926.1	914.1	3,665.7	3,551.6
Net income	233.8	298.3	812.3	889.0
Basic ($/share)	0.40	0.49	1.37	1.47
Diluted ($/share)	0.40	0.49	1.36	1.46
Funds flow 1	412.8	462.3	1,632.2	1,791.4
Basic ($/share) 1	0.70	0.77	2.74	2.96
Diluted ($/share) 1	0.70	0.76	2.73	2.94
Dividends declared	107.1	109.6	433.3	372.8
Per share	0.18	0.18	0.73	0.62
Expenditures on property, plant and equipment 2	261.4	200.5	1,131.1	953.8
Free funds flow 1	151.4	261.8	501.1	837.6
Net Debt 1	933.1	1,385.5	933.1	1,385.5
Operating
Average daily production
Crude oil (bbls/d)	94,965	88,687	92,449	85,718
NGLs (bbls/d)	20,797	19,241	20,371	17,296
Natural gas (Mcf/d)	365,809	351,757	368,610	320,922
Total (boe/d) 3	176,730	166,554	174,255	156,501
Average realized Price 1,4
Crude oil ($/bbl)	92.46	93.98	94.52	95.05
NGLs ($/bbl)	34.23	37.85	34.47	38.90
Natural gas ($/Mcf)	1.57	2.48	1.56	2.84
Petroleum and natural gas revenues ($/boe) 1	56.96	59.66	57.48	62.17
Operating Netback ($/boe) 1
Petroleum and natural gas revenues1	56.96	59.66	57.48	62.17
Tariffs 1	(0.40)	(0.42)	(0.42)	(0.49)
Processing & other income 1	0.61	0.80	0.69	0.87
Marketing revenues 1	4.37	4.57	4.00	4.82
Petroleum and natural gas sales 1	61.54	64.61	61.75	67.37
Realized gain/(loss) on commodity contracts 1	0.84	(0.14)	0.61	0.34
Royalties 1	(9.11)	(10.66)	(9.41)	(10.83)
Operating expenses 1	(13.70)	(13.41)	(13.71)	(14.10)
Transportation expenses 1	(2.24)	(2.09)	(2.13)	(2.17)
Marketing expenses 1	(4.37)	(4.54)	(3.97)	(4.79)
Operating netbacks	32.96	33.77	33.14	35.82
Share information (millions)
Common shares outstanding, end of period	587.5	598.0	587.5	598.0
Weighted average basic shares outstanding	587.6	603.2	594.9	605.1
Weighted average diluted shares outstanding	591.4	607.3	598.1	608.6

MESSAGE TO SHAREHOLDERS

Over the past three years, Whitecap has increased average production from 112,222 boe/d in 2021 to over 174,000 boe/d in 2024. As we continued to grow our asset base, we have also reduced our common shares outstanding by 28.3 million shares increasing our production per share⁵ by 57% over the three year period. At the same time, we have continued to strengthen our balance sheet with net debt now under $1.0 billion, a debt to EBITDA ratio⁶ of only 0.34 times and $1.6 billion of undrawn credit capacity.

A key factor in our ongoing success has been our ability to execute on multiple initiatives to achieve our business objectives in 2024. Our achievements below highlight the quality of assets across our portfolio and demonstrate our technical, operational and financial expertise in creating value on those assets.

Operational Achievements
·         Upward revisions to guidance four times throughout the year, achieving average production of 174,255 boe/d (65% liquids) compared to our budget of 165,000 boe/d (63% liquids), an increase of 6%.
·         Our oil and natural gas liquids weighting at 65% outperformed our expectation of 63% primarily driven by higher than forecast crude oil and condensate volumes from the Montney at Musreau, the Duvernay at Kaybob as well as from the Glauconite in Central Alberta and the Frobisher in East Saskatchewan.
·         Strong reserves per share growth⁷ of 4% on proved developed producing ("PDP") reserves, 4% on total proven ("TP") reserves and 5% on total proven plus probable ("TPP") reserves. On a debt-adjusted basis⁷, reserves per share growth was 12% on PDP reserves, 12% on TP reserves and 13% on TPP reserves.
·         Low Finding, Development & Acquisition ("FD&A") costs¹ of $8.82/boe on PDP reserves, $12.46/boe on TP reserves and $10.02/boe on TPP reserves resulting in recycle ratios¹ of 3.8 times, 2.7 times and 3.3 times, respectively.
·         Entered into a strategic partnership with Pembina Gas Infrastructure ("PGI") to fund 100% of phase 1 of the Lator Infrastructure to unlock 35,000 – 40,000 boe/d of Montney production in Whitecap’s highly economic Lator area, with the potential to increase to 85,000 boe/d with our Lator phase 2 development. Whitecap will design, construct and operate the facility.

Financial Achievements
·         Generated fourth quarter funds flow of $413 million ($0.70 per share) and full year 2024 funds flow of $1.6 billion ($2.73 per share). After capital expenditures of $261 million and $1.1 billion, free funds flow was $151 million ($0.26 per share¹) in the fourth quarter and $501 million ($0.84 per share) for the full year, respectively.
·         Monetized a 50% working interest in our Musreau Facility and Kaybob Complex for proceeds of $520 million representing an attractive EBITDA disposition multiple of 14 times. Whitecap retained a 50% working interest and operatorship in both facilities.
·         Secured additional infrastructure access, enhanced contract terms and highly competitive fees on processing, transportation, fractionation and marketing on our current and future Montney development with a net present value of $190 million that will enhance our future funds flow netback.
·         Successful inaugural investment grade issuance of 5-year senior notes for gross proceeds of $400 million at an attractive fixed interest rate of 4.382% per annum.
·         Reduced net debt by $452 million resulting in year end net debt of $933 million, a Debt to EBITDA ratio of 0.34 times, an EBITDA to interest expense ratio⁶ of 25.91 times and a debt to capitalization ratio⁶ of 0.11 times.

Return of Capital to Shareholders
·         Provided a sustainable base dividend of $0.73 per share equating to $433.3 million returned to shareholders and bringing our total dividends paid since 2013 to $2.2 billion.
·         Continued to enhance our capital structure by repurchasing 12.7 million common shares for $130 million.
·         Our business is resilient down to US$50/bbl WTI and $2.00/GJ AECO whereby we have sufficient funds flow to support the dividend and maintain our current production at 174,000 boe/d.
·         Longer term, our objective is to increase our dividend commensurate with our targeted 3% – 8% production per share growth⁵ and supported by increasing funds flow.

OPERATIONS REVIEW

During 2024, we invested $1.1 billion to drill 246 (225.2 net) wells, including 38 (36.5 net) wells across our unconventional portfolio and 208 (188.6 net) wells across our conventional portfolio. Our 2024 capital program was split approximately even between our unconventional and our conventional assets, with strong operational results from each of our core areas.

Unconventional

Musreau Montney
2024 was an important year for us at Musreau as we completed the commissioning and start-up of our owned and operated Musreau 05-09 battery. The battery was completed two weeks ahead of schedule and 10% below budget. The commissioning of the battery allowed us to increase what was nominal production in the area to approximately 17,500 boe/d. We brought on production 16 (16.0 net) wells during 2024 with performance exceeding our expectations on both a total and a condensate production basis.

Through the application of our unconventional development workflow, we have updated the well configuration and completion design, which now favours multi-bench development. This approach, which vertically offsets wells within the Montney, enhances reservoir coverage while mitigating inter-wellbore interference. This strategic shift has delivered stronger well results, with multi-bench wells tracking long-term outperformance to expectations of approximately 20%. We are actively monitoring these results and evaluating their implications for future development within Musreau and on analogous lands.

Lator Montney
At Lator we continued to assess the deliverability and liquids content across this asset with two (2.0 net) delineation wells drilled on the eastern and southern portions of our Lator acreage. The first well has now been on production for more than 120 days and has achieved an IP(120)³ rate of 1,265 boe/d (41% liquids, including 442 bbl/d of condensate). The second well, with over 80 days of production, is tracking a projected IP(90)³ rate of approximately 1,600 boe/d (24% liquids, including 250 bbl/d of condensate).

In 2024, we also entered into a strategic partnership with PGI to fund 100% of phase 1 of the Lator Infrastructure allowing us to move forward with completion of our detailed engineering and design work and obtaining the required regulatory approvals. Engineering and procurement efforts are advancing as planned, with permitting in progress and approximately three quarters of critical long-lead items now ordered. Additionally, design and acquisition are underway for field facilities and gathering infrastructure. The 4-13 Phase 1 facility is on track to be completed in late 2026/early 2027.

Kakwa Montney
In Kakwa, we drilled our first triple bench pad in 2024 which was designed to evaluate the potential of the D2, D3, and Lower Middle Montney formations with completions currently underway.

In addition, the production results from our wider six wells per section spacing initiative, compared to previously eight wells per section spacing, have proven successful with improved per section economic return profiles. We are currently drilling a four-well pad (4.0 net) in southeast Kakwa, marking our third pad with wider inter-well spacing in the area.

Kaybob Duvernay
In 2024 we spud 23 (23.0 net) wells and brought 8 (8.0 net) wells on production at Kaybob, including three wells with 4,200 metre lateral lengths, our longest Duvernay laterals to date. Our development at Kaybob continues to exceed expectations with production in the area totaling approximately 24,000 boe/d in the fourth quarter of 2024.

We also tested a wine rack design within the Duvernay formation with our 11-14B pad. Initial indications upon completion, flowback, and the first 90 days of production are all favourable and we recently completed fracturing operations on our second wine-racked pad at 08-05A.

Beyond wine rack trials, we are also advancing capital efficiency improvements through extended laterals, leveraging our land base and subsurface characteristics. Our next three development pads will feature 2.5-mile laterals, enhancing resource recovery and operational efficiency.

Conventional

Central Alberta
Our 2024 Glauconite program included 17 (16.7 net) wells and was very successful as we advanced from a monobore drilling trial to full implementation, drilling our last five (5.0 net) wells as monobore's to end the year. We have taken a staged approach to applying monobore drilling in the Glauconite due to technical risks, which our team has done an exceptional job navigating through and ultimately validating an opportunity for enhancement. Given these results, we have now built in a 10% reduction in well costs in the Glauconite across our internal inventory, improving the already robust economics of this asset.

East Saskatchewan
We drilled 37 (34.4 net) dual and triple leg Frobisher wells in 2024, with results forecasted to generate an average payout⁸ in nine months, with average IP(90) results tracking 30% above our expectations. Increasing reservoir contact through longer laterals as well as increasing the number of horizontal legs has been the primary enhancement opportunity since we acquired these assets in 2021. Consolidation across our land base over the last few years has also provided the opportunity to drill longer laterals across a greater portion of our assets, leading to improved capital efficiencies.

We also implemented an eight-leg open hole multi-lateral ("OHML") pilot in 2024 that targeted a tighter flow unit within the upper Frobisher known as the State A. Through 150 days of production³, our State A OHML pilot well has achieved an average production rate of 191 boe/d (70% liquids), resulting in strong economics and the addition of three years of drilling inventory.

West Saskatchewan
We drilled 81 (78.7 net) Viking wells in 2024 focusing solely on extended reach horizontals of 1 mile to 1.5 miles, relative to historical standard-length development wells of 0.5 miles. Our extended reach wells have reduced per unit operating costs, surface footprint, and infrastructure spending resulting in improved economics. We plan to continue to expand extended reach horizontal well utilization in 2025, including at Elrose, where recent consolidation has enabled the use of longer laterals and a more efficient program in the area.

Weyburn
At Weyburn, we drilled 22 (14.8 net) wells in 2024, including 11 (7.6 net) producers and 11 (7.2 net) injector wells. The Weyburn asset generated over $160 million of net operating income⁹ (after capital expenditures) in 2024 as its low base decline rate of approximately 5% and light oil weighted netback provides long-term sustainable cash flow to the Company.

OUTLOOK

2024 was a strong year for Whitecap and the operational and financial success achieved during the year will have a meaningful impact beyond 2024 as the concepts, processes and pilots undertaken will enhance our already robust 6,270 (5,461 net) future inventory locations¹⁰ providing us with decades of sustainable production, funds flow and free funds flow growth.

2025 is off to a strong start as we look to continue the operational momentum from 2024 through a very active first quarter and into the remainder of the year. Our unchanged 2025 guidance is for average production of 176,000 – 180,000 boe/d (63% liquids) and a capital budget of $1.1 – $1.2 billion. At US$70/bbl WTI and $2.00/GJ AECO¹¹, we are forecast to generate $1.7 billion of funds flow and $550 million of free funds flow in 2025. With net debt of under $1 billion, our balance sheet is in excellent condition, and we will continue to focus on share repurchases under our normal course issuer bid to enhance our returns to shareholders, over and above our base dividend of $0.73 per share annually.

Canadian energy of all forms are vital parts of the Canadian economy and critical for both Canadian and North American energy security. The potential for tariffs on oil and gas exported to the United States brings into focus our lack of market diversification and concentrated reliance on one trading partner. We are beginning to understand the positive impact of the Trans Mountain Expansion since it came online last year and we also expect to see the positive impact of the LNG Canada ramp up later this year, but we need more projects as these will bring further market diversification and are overwhelmingly beneficial to all Canadians across our country.

Our business has never been stronger and more resilient. Not only have we managed through extreme volatility over the last several years, but more importantly, our team has been able to execute on development opportunities as well as capture incremental opportunities during periods of market dislocation to make our company stronger.

On behalf of our employees, management team and Board of Directors, we would like to thank our shareholders for their continued support.

NOTES
¹    Funds flow, funds flow basic ($/share), funds flow diluted ($/share) and net debt are capital management measures. Average realized price and per boe disclosure figures are supplementary financial measures. Operating netback and free funds flow are non-GAAP financial measures. Operating netbacks ($/boe), free funds flow diluted ($/share), FD&A costs and recycle ratio are non-GAAP ratios. Refer to the Specified Financial Measures section and Oil and Gas Metrics section in this press release for additional disclosure and assumptions.
²   Also referred to herein as "capital expenditures" and "capital budget".
³   Disclosure of production on a per boe basis in this press release consists of the constituent product types and their respective quantities disclosed herein. Refer to Barrel of Oil Equivalency and Production, Initial Production Rates & Product Type Information in this press release for additional disclosure.
⁴   Prior to the impact of risk management activities and tariffs.
⁵   Production per share is the Company's total crude oil, NGL and natural gas production volumes for the applicable period divided by the weighted average number of diluted shares outstanding for the applicable period. Production per share growth is determined in comparison to the applicable comparative period.
⁶   Debt to EBITDA ratio, EBITDA to interest expense ratio and debt to capitalization ratio are specified financial measures that are calculated in accordance with the financial covenants in our credit agreement, adjusted for cash of $362 million at December 31, 2024.
⁷   Reserves per share is the Company’s total crude oil, NGL and natural gas reserves volumes for the applicable period divided by the weighted average number of diluted shares outstanding for the applicable period. "Reserves per share growth" is determined in comparison to the applicable comparative period. "Debt-adjusted reserves per share" is calculated as year end reserves divided by year end fully diluted shares (approximately 595 million) plus the annual change in net debt (approximately -$452 million) divided by the average annual share price for 2024 ($9.99). Debt-adjusted reserves per share growth is determined in comparison to the year end reserves divided by year end fully diluted shares from the applicable comparative period.
⁸   Also referred to as "capital payout". Refer to Oil and Gas Metrics in this press release for additional disclosure.
⁹   "Operating income" is also referred to herein as "operating netback". Refer to the Specified Financial Measures section in this press release for additional disclosure. Net operating income is operating income minus the capital expenditures for the specified area.
¹⁰ 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.
¹¹ Based on the following commodity pricing and exchange rate assumptions for the remainder of 2025: US$70/bbl WTI, $2.00/GJ AECO and USD/CAD of $1.43.

CONFERENCE CALL AND WEBCAST

Whitecap has scheduled a conference call and webcast to begin promptly at 9:00 am MT (11:00 am ET) on Thursday, February 20, 2025.

The conference call dial-in number is: 1-888-510-2154 or (403) 910-0389 or (437) 900-0527

A live webcast of the conference call will be accessible on Whitecap’s website at www.wcap.ca by selecting "Investors", then "Presentations & Events". Shortly after the live webcast, an archived version will be available for approximately 14 days.

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.