Whitecap Resources (WCP) Investor Day 2024 summary

Strategic Vision, Growth Plans, and Corporate Overview

• Five-year plan targets 3%-8% annual organic production growth, aiming for 215,000 BOE/d by 2029, with upside from accelerated unconventional development and major acquisitions enhancing reserves and cash flow.

• Balanced capital allocation between Montney/Duvernay (47%) and conventional assets (53%), maintaining over 60% oil/liquids weighting.

• Five-year projections include CAD 10B in funds flow, CAD 6B in capital investment, and CAD 4B in free funds flow.

• Plan to return CAD 3B to shareholders via dividends and buybacks, with the remainder allocated to debt reduction.

• Acquisitions and disciplined M&A remain core strategies to enhance per-share cash flow and inventory depth.

Asset Portfolio and Operational Highlights

• Montney and Duvernay assets provide significant growth runway, with production expected to double to 100,000 BOE/d and potential for 120,000 BOE/d by 2029.

• Inventory of over 2,400 unconventional well locations, with less than 10% consumed in the five-year plan, supporting long-term growth.

• Conventional assets in Alberta and Saskatchewan generate over 70% of funds flow, with low decline rates and enhanced oil recovery projects.

• Major infrastructure projects, such as Latour/Lator, are planned to support future growth, with flexibility for expansion.

• Efficiency gains in drilling and completions have reduced costs and improved capital efficiency, with water use per well significantly reduced.

Financial Priorities and Shareholder Returns

• Strong balance sheet with net debt forecast below CAD 1.2B by year-end and a target leverage ratio below 1x through cycles.

• Dividend yield of ~7% is fully funded at $50 WTI, with annual dividend of CAD 0.73/share and focus on share buybacks for per-share growth.

• Stress-tested financial model supports continued returns and growth even at lower commodity prices.

• Optionality to reallocate up to CAD 1.1B to shareholder returns or further consolidation if capital efficiencies improve.

• Marketing strategy leverages pipeline access, diversified gas sales, and growing LNG and premium market exposure.