CALGARY, AB, July 23, 2025 /CNW/ - Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to report its operating and unaudited financial results for the three and six months ended June 30, 2025.

Selected financial and operating information is outlined below and should be read with Whitecap's unaudited interim consolidated financial statements and related management's discussion and analysis for the three and six months ended June 30, 2025 which are available at www.sedarplus.ca and on our website at www.wcap.ca.

 
Financial ($          Three Months ended Jun. 30    Six Months ended Jun. 30 
millions except for 
share amounts) 
                      2025           2024           2025          2024 
Petroleum and 
 natural gas 
 revenues                   1,365.3          980.4       2,307.5       1,848.7 
Net income                    310.6          244.5         473.2         304.3 
 Basic ($/share)               0.33           0.41          0.62          0.51 
 Diluted ($/share)             0.33           0.41          0.61          0.51 
Funds flow (1)                712.8          426.4       1,159.1         810.4 
 Basic ($/share) (1)           0.76           0.71          1.51          1.35 
 Diluted ($/share) 
  (1)                          0.75           0.71          1.50          1.35 
Dividends declared            185.4          109.2         292.6         218.3 
 Per share                     0.18           0.18          0.36          0.36 
Expenditures on 
 property, plant and 
 equipment (2)                408.8          203.8         806.9         597.0 
Free funds flow (1)           304.0          222.6         352.2         213.4 
Net debt (1)                3,290.1        1,297.0       3,290.1       1,297.0 
Operating 
Average daily 
production 
 Crude oil (bbls/d)         152,090         93,663       123,089        91,235 
 NGLs (bbls/d)               35,079         20,701        28,659        20,052 
 Natural gas (Mcf/d)        633,511        377,700       506,817       373,200 
Total (boe/d) (3)           292,754        177,314       236,218       173,487 
Average realized 
price (1,4) 
 Crude oil ($/bbl)            83.13         102.06         86.87         95.71 
 NGLs ($/bbl)                 33.86          34.88         35.49         34.83 
 Natural gas ($/Mcf)           1.85           1.30          2.05          1.95 
Petroleum and 
 natural gas 
 revenues ($/boe) 
 (1)                          51.25          60.76         53.97         58.55 
Operating netback 
($/boe) (1) 
 Petroleum and 
  natural gas 
  revenues(1)                 51.25          60.76         53.97         58.55 
 Tariffs (1)                 (0.44)         (0.42)        (0.38)        (0.43) 
 Processing & other 
  income (1)                   0.46           0.71          0.59          0.74 
 Marketing revenues 
  (1)                          3.04           3.95          3.36          3.91 
Petroleum and 
 natural gas sales 
 (1)                          54.31          65.00         57.54         62.77 
 Realized gain on 
  commodity 
  contracts (1)                1.62           0.28          1.33          0.32 
 Royalties (1)               (6.97)        (10.09)        (8.04)        (9.77) 
 Operating expenses 
  (1)                       (13.58)        (13.49)       (13.58)       (13.87) 
 Transportation 
  expenses (1)               (2.80)         (2.12)        (2.63)        (2.09) 
 Marketing expenses 
  (1)                        (3.04)         (3.91)        (3.32)        (3.88) 
Operating netbacks            29.54          35.67         31.30         33.48 
Share information 
(millions) 
Common shares 
 outstanding, end of 
 period                     1,231.6          599.4       1,231.6         599.4 
Weighted average 
 basic shares 
 outstanding                  941.4          598.8         765.4         598.4 
Weighted average 
 diluted shares 
 outstanding                  946.4          602.1         770.2         601.9 
 

MESSAGE TO SHAREHOLDERS

Whitecap continued its strong operational momentum in the second quarter of 2025 with production averaging 292,754 boe/d, including 187,169 bbls/d of oil, condensate and NGLs and 633,511 mcf/d of natural gas. Exceptional asset level outperformance continued across our unconventional and conventional portfolios, leading to production exceeding our internal expectations.

During the quarter, we successfully closed the strategic combination with Veren Inc. ("Veren") on May 12, 2025, creating Canada's seventh largest oil and natural gas producer and the fifth largest natural gas producer. Whitecap has now become the largest Alberta Montney and Duvernay landholder and a prominent light oil producer in Saskatchewan with a deep portfolio of premium drilling inventory across all commodities.

Following the strategic combination with Veren, our balance sheet remains in excellent shape with low leverage and ample liquidity. Our credit rating was upgraded to BBB, with a stable trend, by DBRS, Inc. in the second quarter, reflecting our improved credit profile. During the quarter, we also issued investment grade 3-year senior unsecured notes for gross proceeds of $300 million at an attractive fixed coupon of 3.761% per annum.

We also further improved our balance sheet through the disposition of certain non-strategic assets which closed in the second quarter for aggregate consideration of $270 million, prior to closing adjustments. This includes the previously announced sale of medium oil production in southwest Saskatchewan and an 8.333% working interest in a natural gas facility in the Kaybob region.

We are pleased to provide the following second quarter and year to date 2025 financial and operating highlights:

   -- Production Outperformance. Second quarter production of 292,754 boe/d 
      represents an increase of 5% per share5 compared to the second quarter of 
      2024 and a 2% per share increase over the first quarter of 2025. Asset 
      level outperformance, along with the timing of new production additions 
      and downtime optimization, contributed to production exceeding our 
      internal expectations. 
 
   -- Funds Flow. Second quarter funds flow of $713 million ($0.75 per share) 
      increased 6% per share compared to the second quarter of 2024. After 
      capital investments of $409 million, Whitecap generated free funds flow 
      of $304 million in the quarter. 
 
   -- Balance Sheet Strength. Quarter end net debt of $3.3 billion equates to a 
      net debt to annualized funds flow ratio1 of 1.0 times. Our unutilized 
      debt capacity of $1.6 billion provides us with significant financial 
      flexibility to navigate through periods of market volatility. 
 
   -- Return of Capital. For the six months ended June 30, 2025, we returned 
      $298 million to shareholders through our monthly dividend of $0.0608 per 
      share and share repurchases under our normal course issuer bid ("NCIB"). 
      Our NCIB was renewed in the second quarter, allowing for the repurchase 
      up to 122.1 million shares, or 10% of our public float, prior to May 22, 
      2026. 

OPERATIONS UPDATE

Unconventional

In the Kaybob area, our Duvernay production was higher than forecasted as strong operational execution advanced new pad production into the second quarter along with downtime optimization that allowed us to mitigate the impact of turnaround activity at our 15-07 gas processing facility. Our third pad utilizing a wine rack style design was also recently brought on production through permanent facilities with encouraging initial results. Positive production results from our first three wine rack style pads, combined with strong observed reservoir performance, are providing us the confidence to proceed with this development approach on applicable lands across our Kaybob asset. This design is expected to enhance our production performance and financial returns in the play by improving per well recoveries and associated well economics in our high quality Duvernay inventory.

At Gold Creek and Karr, 12 Montney wells (12.0 net) were brought on production across two pads in the first half of 2025. Production results are in line with our internal expectations and provide us with incremental technical data to assess the impact of well design and development changes on well economics and the long-term potential of the assets. Following optimization and debottlenecking efforts in the first half of 2025, there has been improved infrastructure reliability and utilization across both Gold Creek and Karr.

Our prior results have proven the deliverability of our Musreau Montney asset and have provided us with confidence to drill larger-scale multi-well pads to further improve the capital efficiency of the area. We are currently drilling a 6.0 well (6.0 net) pad which is forecasted to be on production in early 2026 as plant capacity becomes available. We also continue to investigate debottlenecking options which would increase gas throughput at the 05-09 battery.

At Kakwa, we successfully brought our first triple bench Montney pad on production during the quarter with strong initial results. The 3-well (1.5 net) pad in northwest Kakwa achieved an IP90(3) rate of 1,212 boe/d (65% liquids) which is 14% above our expectations. The pad configuration is performing as expected based on our technical observations at this early stage, providing an important validation point for this triple bench design.

We continue to see encouraging results from our two (2.0 net) delineation Montney wells drilled on the eastern and southern portions of our Lator acreage in 2024, with average performance exceeding our internal expectations by approximately 20%. We plan to begin drilling a 3-well (3.0 net) pad in the area late in the third quarter, further advancing our technical delineation program and understanding of the Lator asset, with relevant technical read-through to our adjacent Resthaven acreage.

Phase 1 of our planned 04-13 Lator facility is progressing on schedule, with all regulatory permits required to commence construction received. We have initiated earthworks on the facility site and procured all necessary equipment with expected delivery in the first quarter of 2026. The 35,000 -- 40,000 boe/d facility is scheduled to be completed in late 2026/early 2027 while Phase 2 is expected to increase production up to 80,000 -- 85,000 boe/d in the 2029/2030 timeframe.

Conventional

Open hole multi-lateral ("OHML") development continues to progress at Viewfield in southeast Saskatchewan. Our 5 (4.5 net) most recent Bakken wells have exceeded our internal expectations by 27%. We recently brought our first 2.5 mile Bakken well, which was the longest OHML drilled in the play to date, on production with encouraging initial results. We plan to drill 7 OHML wells (4.9 net) in the Bakken in the second half of 2025, including a 3.0 mile pilot well which we recently commenced drilling.

We are also advancing our OHML program within the Frobisher in eastern Saskatchewan following strong results in 2024. Our active first quarter program included 13 (12.2 net) wells, and our focus on drilling additional legs and longer laterals has led to capital efficiency improvements of approximately 25% as compared to the prior year. Through the balance of 2025, we plan to drill an additional 21 (20.0 net) OHML wells in the Frobisher, building on our strong momentum to date. We continue to evaluate further opportunities to enhance well economics and inventory in the play, including increasing the number of legs per well to maximize royalty incentives in addition to facility debottlenecking and expansion projects. We also continue to evaluate the applicability of OHML technology in other areas across our conventional portfolio, which has the potential to enhance economics and add drilling inventory.

The Cardium wells brought on production at Wapiti during the first quarter continue to exceed our expectations, further validating the well design enhancements on returns in the play. We now have 6 wells (5.4 net) which have been on production for approximately 180 days, achieving an average IP180(3) rate of 558 boe/d (79% liquids). These wells, which included an optimized completions design based on workflows utilized in our unconventional assets, have exceeded our type curve expectations by 59% and provide us with the confidence to deploy this approach on future wells in the area.

Recent facility egress optimizations within our Glauconite play allowed us to mitigate the production impact of planned downtime during the quarter, driving outperformance relative to internal expectations. Our Glauconite assets have shown significant improvement in profitability since they were first acquired in 2021 through the combination of monobore drilling, production results continuing to exceed expectations and increased facility access and utilization.

OUTLOOK

The strategic combination completed with Veren in the second quarter has established Whitecap as a premier operator in the Western Canadian Sedimentary Basin with enhanced scale, significant premium inventory, financial strength and robust financial returns to shareholders. Our portfolio contains high quality drilling opportunities ranging from light oil, through condensate-rich to prolific lean natural gas for enhanced flexibility and to maximize returns across commodity cycles.

We have made significant progress integrating the acquired assets and personnel to date, capturing early synergies through the consolidation of corporate costs and from our improved credit profile. Shared learnings and expertise are occurring across our consolidated portfolio and are expected to drive additional capital efficiency improvements and operating cost reductions within the next 6 -- 12 months. We look forward to updating shareholders on our progress through the remainder of the year.

We now expect to be at the high end of our 2025 production guidance of 295,000 -- 300,000 boe/d (63% liquids) due to the outperformance achieved in the second quarter on an unchanged capital budget of $2.0 billion. For the second half of 2025, production is expected to average 363,000 -- 368,000 boe/d (62% liquids) based on capital expenditures of approximately $1.2 billion.

Our long duration of premium inventory puts us in a very enviable position to deliver on our strategic priorities of balance sheet strength, capital discipline and providing exceptional returns to shareholders well into the future.

On behalf of our employees, management team and Board of Directors, we would like to thank our shareholders for their continued support.

Note for U.S. Holders

Whitecap has recently changed its OTC ticker symbol to "WCPRF". Whitecap's common shares were previously trading on the OTC Market under the symbol "SPGYF". No action is required by shareholders with respect to the ticker symbol change.

NOTES

 
(1)  Funds flow, funds flow basic ($/share), funds flow 
      diluted ($/share), annualized funds flow, and net 
      debt are capital management measures. Average realized 
      price, net debt to annualized funds flow ratio, and 
      per boe disclosure figures are supplementary financial 
      measures. Operating netback and free funds flow are 
      non-GAAP financial measures. Operating netbacks ($/boe) 
      is a non-GAAP ratio. Refer to the Specified Financial 
      Measures section in this press release for additional 
      disclosure and assumptions. 
(2)  Also referred to herein as "capital expenditure", 
      "capital investment" and "capital budget". 
(3)  Disclosure of production on a per boe basis in this 
      press release consists of the constituent product 
      types and their respective quantities disclosed herein. 
      Refer to Barrel of Oil Equivalency and Production, 
      Initial Production Rates and Product Type Information 
      in this press release for additional disclosure. 
(4)  Prior to the impact of risk management activities 
      and tariffs. 
(5)  Production per share is the Company's total crude 
      oil, NGL and natural gas production volumes for the 
      applicable period divided by the weighted average 
      number of diluted shares outstanding for the applicable 
      period. Production per share growth is determined 
      in comparison to the applicable comparative period. 
 

CONFERENCE CALL AND WEBCAST

Whitecap has scheduled a conference call and webcast to begin promptly at 9:00 am MT (11:00 am ET) on Thursday, July 24, 2025.

The conference call dial-in number is: 1-888-510-2154 or (403) 910-0389 or (437) 900-0527

A live webcast of the conference call will be accessible on Whitecap's website at www.wcap.ca by selecting "Investors", then "Presentations & Events". Shortly after the live webcast, an archived version will be available for approximately 14 days.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results and business opportunities. Forward-looking information typically uses words such as "anticipate", "believe", "continue", "trend", "sustain", "project", "expect", "forecast", "budget", "goal", "guidance", "plan", "objective", "strategy", "target", "intend", "estimate", "potential", or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, including statements about our strategy, plans, focus, objectives, priorities and position.

In particular, and without limiting the generality of the foregoing, this press release contains forward-looking information with respect to: our belief that we have a deep portfolio of premium drilling inventory across all commodities; our belief that our balance sheet remains in excellent shape with low leverage and ample liquidity; our belief that our credit rating upgrade to BBB, with a stable trend, by DBRS, Inc. reflects our improved credit profile; our belief that we further improved our balance sheet through the disposition of certain non-strategic assets; our expectation that our unutilized debt capacity will provide us with significant financial flexibility to navigate through periods of market volatility; our belief that results on our third pad utilizing a wine rack design in Kaybob are encouraging; our expectation that a wine rack style design will enhance our production performance and financial returns in Kaybob by improving per well recoveries and associated well economics in our high quality Duvernay inventory; our belief that recent production results at Gold Creek and Karr provide us with incremental technical data to assess the impact of well design and development changes on well economics and the long-term potential of the assets; our belief that there has been improved infrastructure reliability and utilization across Gold Creek and Karr following optimization and debottlenecking efforts; the timing to bring a 6.0 well (6.0 net) pad on production at Musreau; our forecast for when plant capacity becomes available at Musreau; our plans to continue to investigate debottlenecking options and the anticipated benefits in connection therewith, including the anticipated increase in gas throughput at the Musreau 05-09 battery; our belief that a triple bench pad configuration at Kakwa is performing as expected based on technical observations; our belief that delineation well results at Lator are encouraging; the anticipated timing of drilling plans for Lator and our belief they will further advance our technical delineation and understanding of the asset, with relevant technical read-through to our adjacent Resthaven landbase; our expectation that completion of the new

35,000 -- 40,000 boe/d Lator facility will be completed in late 2026 or early 2027 and the anticipated timing of the delivery of all necessary equipment; our expectation that Phase 2 of the Lator facility will increase production up to 80,000 -- 85,000 boe/d in the 2029/2030 timeframe; our belief that initial results from our 2.5 mile Bakken OHML well at Viewfield are encouraging and our anticipated drilling plans for the remainder of 2025; our anticipated OHML drilling plans in the Frobisher for the balance of the year and our expectation that we will evaluate increasing the number of legs per well to maximize royalty incentives in addition to facility debottlenecking and expansion projects; our belief that OHML technology has the potential to enhance economics and add drilling inventory in other areas of our conventional portfolio; our belief that Cardium wells brought on production at Wapiti validate well design enhancements and provide us with the confidence to deploy this approach on future wells in the area, and our ability to deploy this approach on future wells in the area and the anticipated benefits in connection therewith; our expectation that the production of our Glauconite assets will continue to exceed expectations and increased facility access and utilization; our belief that the strategic combination completed with Veren in the second quarter has established Whitecap as a premier operator in the Western Canadian Sedimentary Basin with enhanced scale, significant premium inventory, financial strength, and robust returns to shareholders; our belief that our portfolio contains high quality drilling opportunities ranging from light oil, through condensate-rich to prolific lean natural gas for enhanced flexibility and to maximize returns across commodity cycles; our belief that shared learnings and expertise are occurring across our consolidated portfolio and the anticipated benefits therefrom, including additional capital efficiency improvements and operating cost reductions within the next 6 -- 12 months; our forecast for 2025 and second half 2025 capital expenditures and production, including by product type; and our belief that our long duration of premium inventory puts us in a very enviable position to deliver on our strategic priorities of balance sheet strength, capital discipline, and providing exceptional returns to shareholders well into the future.

The forward-looking information is based on certain key expectations and assumptions made by our management, including: the duration and impact of tariffs that are currently in effect on goods exported from or imported into Canada, and that other than the tariffs that are currently in effect, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, reenacts tariffs that are currently suspended, or imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas; that we will continue to conduct our operations in a manner consistent with past operations except as specifically noted herein (and for greater certainty, the forward-looking information contained herein excludes the potential impact of any acquisitions or dispositions that we may complete in the future); the general continuance or improvement in current industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; expectations and assumptions concerning prevailing and forecast commodity prices, exchange rates, interest rates, inflation rates, applicable royalty rates and tax laws, including the assumptions specifically set forth herein; the ability of OPEC+ nations and other major producers of crude oil to adjust crude oil production levels and thereby manage world crude oil prices; the impact (and the duration thereof) of the ongoing military actions in the Middle East and between Russia and Ukraine and related sanctions on crude oil, NGLs and natural gas prices; the impact of current and forecast exchange rates, inflation rates and/or interest rates on the North American and world economies and the corresponding impact on our costs, our profitability, and on crude oil, NGLs and natural gas prices; future production rates and estimates of operating costs and development capital, including as specifically set forth herein; performance of existing and future wells; reserves volumes and net present values thereof; anticipated timing and results of capital expenditures/development capital, including as specifically set forth herein; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the timing and costs of pipeline, storage and facility construction and expansion; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; the availability and cost of financing, labour and services; future dividend levels and share repurchase levels; the impact of increasing competition; ability to efficiently integrate assets and employees acquired through acquisitions or asset exchange transactions, including the assets and employees acquired in connection with the business combination with Veren; ability to market oil and natural gas successfully; our ability to access capital and the cost and terms thereof; that we will not be forced to shut-in production due to weather events such as wildfires, floods, droughts or extreme hot or cold temperatures; the commodity pricing and exchange rate forecasts for 2025 and beyond referred to herein; and that we will be successful in defending against previously disclosed and ongoing reassessments received from the Canada Revenue Agency and assessments received from the Alberta Tax and Revenue Administration.

Although we believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Whitecap can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. These include, but are not limited to: the risk that the funds that we ultimately return to shareholders through dividends and/or share repurchases is less than currently anticipated and/or is delayed, whether due to the risks identified herein or otherwise; the risk that any of our material assumptions prove to be materially inaccurate, including our 2025 forecast (including for production levels, capital expenditure levels, commodity prices and exchange rates); the risk that (i) the tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will trigger a broader global trade war which could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, including the risk that weather events such as wildfires, flooding, droughts or extreme hot or cold temperatures forces us to shut-in production or otherwise adversely affects our operations; pandemics and epidemics; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; risks associated with increasing costs, whether due to elevated inflation rates, elevated interest rates, supply chain disruptions or other factors; health, safety and environmental risks; commodity price and exchange rate fluctuations; interest rate fluctuations; inflation rate fluctuations; marketing and transportation risks; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions, including the anticipated benefits of the business combination with Veren; the risk that going forward we may be unable to access sufficient capital from internal and external sources on acceptable terms or at all; failure to obtain required regulatory and other approvals; reliance on third parties and pipeline systems; changes in legislation, including but not limited to tax laws, tariffs, import or export restrictions or prohibitions, production curtailment, royalties and environmental (including emissions and "greenwashing") regulations; the risk that we do not successfully defend against previously disclosed and ongoing reassessments received from the Canada Revenue Agency and assessments received from the Alberta Tax and Revenue Administration and are required to pay additional taxes, interest and penalties as a result; and the risk that the amount of future cash dividends paid by us and/or shares repurchased for cancellation by us (including pursuant to the NCIB), if any,

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