Whitecap Resources

Whitecap Resources is a Canadian public oil company based in Calgary, Alberta, with operations in Alberta, Saskatchewan, and British Columbia. In 2018, it produced 74,415 barrels of energy per day, with 85% of production consisting of crude oil and other liquids. It is listed on the Toronto Stock Exchange.

Whitecap Resources
Public
Traded asTSX: WCP
S&P/TSX Composite Component
IndustryOil and Gas
Founded2009
Headquarters
Calgary, Alberta
,
Canada
Key people
Grant Fagerheim (President, Chief Executive Officer, and Chairman)
Revenue CA$1,316 million (2018)[1]
CA$65 million (2018)[1]
Total assets CA$5,959 million (2018)[1]
Total equity CA$3,230 billion (2018)[1]
Websitewww.wcap.ca

History

Whitecap Resources was founded in 2009.[2] Its daily production grew rapidly in the following years, from 275 barrels of energy per day in 2009 to 14,052 in 2012. In 2012, it acquired Midway Energy, another Alberta light oil producer, for $550 million.[3] In 2016, Whitecap bought some of Husky Energy's oil assets in Southwest Saskatchewan for $595 million.[4]

In 2017, Brad Wall, then-premier of Saskatchewan, invited Whitecap to move to that province, citing lower taxes and subsidized relocation costs.[5] The company CEO, Grant Fagerheim, said that it was considering the offer, but would only move if it benefited shareholders.[5]

In November 2017, Whitecap purchased a 62% interest in the Weyburn oil project in Saskatchewan for $940 million from Cenovus Energy. The deal was expected to increase Whitecap's oil production by 25%.[6]

Operations

Whitecap Resources primarily produces light, sweet crude oil,[2] as opposed to heavy oil or natural gas. It generally focuses on oil development and production instead of exploration. It has properties in northwest Alberta & B.C., central Alberta, and Saskatchewan with 2019 production guidance of 70,000 - 72,000 barrels of energy per day. As of 2019, Whitecap has identified 2,827 gross drilling locations (8 to 10 years of inventory) with 1,568 proved plus probable.

Whitecap's strategy is to deliver 10% to 15%/annum dividend + growth through balance sheet strength, sustainable dividends and moderate growth.

Whitecap's Weyburn asset is the largest carbon dioxide capture and sequesterer for oil and gas sector in the world.

In 2019, Whitecap recorded its 3rd consecutive year of dividend increases.

References
  1. "Whitecap Resources 2018 Consolidated Balance Sheet" (PDF). February 2019.
  2. "Whitecap Resources is focused on oil production – but not exploration - Alberta Oil Magazine". Alberta Oil Magazine. 2013-06-26. Retrieved 2018-02-27.
  3. "Whitecap Resources to acquire Midway Energy". The Globe and Mail. 2012-02-28. Retrieved 2018-02-27.
  4. Press, Dan Healing, The Canadian (2016-05-10). "Whitecap Resources strikes deal to buy Husky oil assets for $595 million". Winnipeg Free Press. Retrieved 2018-02-27.
  5. "Brad Wall invites Calgary energy companies to move to Saskatchewan". CBC News. Retrieved 2018-02-27.
  6. "Cenovus selling majority stake in Weyburn oil project | CBC News". CBC. Retrieved 2018-02-27.
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