January 02, 2025
WHITECAP RESOURCES INC. CLOSES PREVIOUSLY ANNOUNCED INFRASTRUCTURE DISPOSITION AND LATOR PHASE 1 FUNDING
CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to announce that the partial working interest disposition of its 15-07 Kaybob Complex for $420 million to Pembina Gas Infrastructure ("PGI") closed on December 31, 2024. Proceeds have been used to reduce net debt to below $1 billion1, resulting in a Debt to EBITDA ratio2 of only 0.5 times and over $1.6 billion of unused debt capacity. This low leverage combined with ample liquidity, positions Whitecap well heading into 2025 for another year of robust shareholder returns including enhanced per share growth metrics.
We have also closed our strategic partnership with PGI to fund 100% of phase 1 of the Lator Infrastructure which includes our 04-13 battery with natural gas compression capacity of approximately 150,000 mcf/d and condensate stabilization capacity of 10,000 – 15,000 bbl/d, along with investment in new natural gas and condensate gathering pipelines. This is an important milestone for us, unlocking 35,000 – 40,000 boe/d3 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. Completion of the Lator Facility is expected in late 2026/early 2027, with design and engineering work progressing and front-end engineering complete.
Our strategic partnership with PGI includes securing additional access, enhanced contract terms and highly competitive fees on processing, transportation, fractionation and marketing for our current and future Montney and Duvernay development. The access to PGI and Pembina’s vast network of infrastructure and midstream assets across Alberta improves our operational flexibility and increases our ability to enhance our netback through downstream optimization.
On behalf of our board of directors and management team, we would like to thank our shareholders for their ongoing support and look forward to another year of operational and financial excellence in 2025 and beyond.
NOTES
1 Net debt is a capital management measure. Refer to the Specified Financial Measures section in this press release for additional disclosure.
2 Debt to EBITDA ratio is a specified financial measure that is calculated in accordance with the financial covenants in our credit agreement.
3 See Oil and Gas Advisories for more information on production on a per boe basis.
For further information:
Grant Fagerheim, President & CEO
or
Thanh Kang, Senior Vice President & CFO
Whitecap Resources Inc.
3800, 525 – 8th 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.
