WHITECAP RESOURCES INC. ANNOUNCES TRANSITION TO A SUSTAINABLE INTERMEDIATE LIGHT OIL DIVIDEND-AND-GROWTH COMPANY AND 2013 GUIDANCE
CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap", “we”, “us”, “our” or the "Company") (TSX: WCP) is pleased to announce its plans to transition to a pre-eminent intermediate size light oil producer focused on paying sustainable dividends and delivering long term per share growth.
Since inception Whitecap has delivered 33 percent compounded annual production growth on a fully diluted per share basis. We have strategically acquired and integrated light oil assets that have predictable production profiles, shallow declines, strong netbacks, and large repeatable light oil development drilling inventories. All these factors allow us to seamlessly transition to a dividend-and-growth model that can support sustainable dividend payments to our shareholders and also provide continuing annual per share growth of 3 to 5 percent.
Our assets currently under management provide high operating netbacks and, when combined with our low corporate cost structure, generate strong cash flow netbacks which will allow us to fully fund our planned dividend payments and capital program through internally generated funds from operations. Our basic payout ratio for 2013 is expected to be 32 percent and we anticipate total capital spending and dividend payments to represent less than 95 percent of our funds from operations.
We at Whitecap believe we have the key attributes to successfully transition to a sustainable income plus dividend-and-growth model.
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