Whitecap Resources (WCP) EnerCom Denver – The Energy Investment Conference summary

Financial performance and capital structure

• Market cap stands at CAD 21 billion with an enterprise value of CAD 24 billion and a 0.5x debt to cash flow ratio, supporting a 4.1% dividend yield.

• Produces 385,000 BOE per day, 61% liquids, ranking fifth in Canadian oil and gas production.

• Achieved 13% CAGR in funds flow, 11% in production and reserves since inception, focusing on per share growth.

• 2026 cash flow projected at CAD 4.3 billion with a CAD 2.1 billion capital program, leaving CAD 2.2 billion in free cash flow.

• Structural improvements post-Veren acquisition led to 12% better capital efficiency and 13% lower operating costs, boosting free cash flow by CAD 500 million annually.

Asset portfolio and growth strategy

• Conventional assets generate 50% of cash flow with only 25% of CapEx, providing stability and dividend support.

• Unconventional assets (Montney, Duvernay) drive 8%-12% annual growth, supporting overall 3%-5% production growth.

• Inventory includes 10,500 drilling locations, split 55% conventional and 45% unconventional, offering decades of development.

• Capital allocation is flexible, shifting between oil and gas based on market conditions to maximize returns.

• Long-term production growth target is 3%-5%, with a focus on maintaining a strong balance sheet and returning capital via dividends and share buybacks.

Capital allocation and risk management

• Counter-cyclical approach: prioritize debt reduction in high-price environments, targeting CAD 2 billion debt by end of 2026.

• In low-price scenarios, maintain production and dividends within cash flow, using balance sheet strength for buybacks or acquisitions.

• Cumulative returns to shareholders include CAD 3.4 billion in dividends and nearly CAD 1 billion in buybacks.

• Investment grade rating (BBB), low borrowing cost (4%), and CAD 1.7 billion liquidity provide financial flexibility.

• Hedges 25%-35% of production on a rolling two-year basis using swaps and collars to protect cash flows.