CALGARY,
AB, Feb. 22, 2023 /CNW/ - Whitecap Resources
Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to report
its operating and audited financial results for the quarter and
year ended December 31, 2022, and
its 2022 year end reserves evaluation.
Selected financial and operating information is outlined below
and should be read with Whitecap's audited annual consolidated
financial statements and related management's discussion and
analysis for the three and twelve months ended December 31, 2022 which are available at
www.sedar.com and on our website at www.wcap.ca.
Financial ($
millions except for share amounts
and percentages)
|
Three months ended
December 31
|
Twelve months ended
December 31
|
2022
|
2021
|
2022
|
2021
|
Petroleum and natural
gas revenues
|
1,116.5
|
785.8
|
4,452.9
|
2,526.3
|
Net income
|
318.7
|
223.8
|
1,676.1
|
1,776.7
|
Basic
($/share)
|
0.52
|
0.36
|
2.72
|
2.97
|
Diluted
($/share)
|
0.52
|
0.35
|
2.70
|
2.95
|
Funds flow
1
|
593.6
|
350.6
|
2,322.8
|
1,098.6
|
Basic ($/share)
1
|
0.97
|
0.56
|
3.77
|
1.84
|
Diluted
($/share) 1
|
0.97
|
0.55
|
3.74
|
1.82
|
Dividends paid or
declared
|
67.2
|
42.3
|
237.2
|
126.1
|
Per
share
|
0.11
|
0.07
|
0.39
|
0.21
|
Expenditures on
property, plant and equipment 2
|
179.0
|
1354.0
|
686.5
|
428.5
|
Total payout ratio (%)
1
|
41
|
51
|
40
|
50
|
Net Debt
1
|
1,913.1
|
1,154.6
|
1,913.1
|
1,154.6
|
Operating
|
|
|
|
|
Average daily
production
|
|
|
|
|
Crude oil
(bbls/d)
|
91,812
|
79,315
|
86,417
|
75,387
|
NGLs
(bbls/d)
|
17,473
|
10,568
|
15,521
|
10,418
|
Natural gas
(Mcf/d)
|
342,640
|
180,820
|
254,708
|
158,501
|
Total (boe/d)
3
|
166,392
|
120,020
|
144,389
|
112,222
|
Average realized price
1, 4
|
|
|
|
|
Crude oil
($/bbl)
|
102.50
|
89.40
|
114.68
|
77.90
|
NGLs
($/bbl)
|
46.84
|
52.24
|
55.30
|
41.16
|
Natural gas
($/Mcf)
|
5.56
|
4.97
|
5.62
|
3.91
|
Petroleum and natural
gas revenues ($/boe) 1
|
72.94
|
71.17
|
84.49
|
61.68
|
Operating netback
($/boe) 1
|
|
|
|
|
Petroleum and
natural gas revenues
|
72.94
|
71.17
|
84.49
|
61.68
|
Tariffs
|
(0.49)
|
(0.48)
|
(0.46)
|
(0.43)
|
Processing &
other income
|
0.77
|
0.68
|
0.68
|
0.74
|
Marketing
revenue
|
5.93
|
4.33
|
5.99
|
3.78
|
Petroleum and natural
gas sales
|
79.15
|
75.70
|
90.70
|
65.77
|
Realized loss on
commodity contracts
|
(1.43)
|
(8.13)
|
(4.66)
|
(5.94)
|
Royalties
|
(13.34)
|
(13.09)
|
(16.35)
|
(10.15)
|
Operating
expenses
|
(14.13)
|
(13.49)
|
(14.54)
|
(13.58)
|
Transportation
expenses
|
(2.12)
|
(2.12)
|
(2.18)
|
(2.20)
|
Marketing
expenses
|
(5.87)
|
(4.34)
|
(5.94)
|
(3.80)
|
Operating
netbacks
|
42.26
|
34.53
|
47.03
|
30.10
|
Share information
(000s)
|
|
|
|
|
Common shares
outstanding, end of period
|
608.7
|
615.8
|
608.7
|
615.8
|
Weighted average basic
shares outstanding
|
610.8
|
627.8
|
616.5
|
598.6
|
Weighted average
diluted shares outstanding
|
613.8
|
634.2
|
621.1
|
603.1
|
MESSAGE TO SHAREHOLDERS
2022 was an exceptional year for Whitecap with operational and
financial results exceeding expectations. Production in the fourth
quarter averaged 166,392 boe/d, ahead of our guidance of 165,000
boe/d despite unexpected downtime due to the extreme cold weather
in December. We achieved record annual production of 144,389 boe/d
on capital expenditures of $687
million, compared to guidance of 144,000 boe/d and
$670 - $690
million, respectively.
Our 2022 year end reserves report highlights efficient and
profitable organic growth with proved developed producing ("PDP")
reserves per share increasing 19% and with our PDP finding and
development ("F&D") cost1 of $13.20 per boe generating a recycle
ratio1 of 3.6x. We continue to enhance long-term
sustainability with total proved ("TP") finding, development and
acquisitions ("FD&A") cost1 of $16.15 per boe generating a recycle ratio of 2.9x
and growing TP reserves per share by 49% over the prior year.
The XTO Energy Canada ("XTO") acquisition, which closed on
August 31, 2022 for net cash
consideration of $1.7 billion, was
transformational to Whitecap as it added 32,000 boe/d from the
Montney and Duvernay formations in Northwest Alberta and included 672,000 acres
of land with over 2,000 drilling locations5,
significantly increasing the sustainability of our dividend plus
growth model.
Our strategy of operational execution enhanced by strategic
acquisitions once again resulted in significant per share growth
for our shareholders. Compared to the prior year, production per
share6 increased 25%, funds flow per share increased
105%, free funds flow per share increased 137% and reserves per
share also increased significantly in all categories.
Whitecap generated record funds flow of over $2.3 billion, and after capital expenditures of
$687 million, had free funds
flow1 of $1.6 billion.
2022 was also another year of significant capital returns to
shareholders. We started 2022 with a monthly dividend of
$0.0225 per share and increased it by
63% to end 2022 at $0.0367 per share.
Subsequent to year end, we increased the monthly dividend by
another 32% to $0.0483 per share. We
also repurchased 25 million common shares at an average price of
$9.72 per share for total capital
returned to shareholders (dividends plus share repurchases) of
$480 million in 2022.
After the closing of the XTO acquisition, net debt was
$2.2 billion and was quickly reduced
to $1.9 billion (13%) within four
months with the significant free funds flow generated by our
consolidated asset base. Subsequent to year end, we further reduced
net debt to $1.5 billion through the
disposition of several non-strategic assets.
We highlight the following fourth quarter and full year 2022
financial and operating results:
- Record Funds Flow. Whitecap generated $2.3 billion of funds flow in 2022 ($3.74 per share), the highest in the Company's
thirteen-year history and 82% higher than the second highest funds
flow per share year in 2014. Fourth quarter funds flow of
$594 million ($0.97 per share) was the second highest quarterly
funds flow in Company history and was the first full quarter that
included the acquired XTO assets. Full year and fourth quarter 2022
operating netback of $47.03 per boe
and $42.26 per boe, respectively,
were 56% and 22% higher than the full year and fourth quarter of
2021, respectively.
- Strong Operational Performance. Full year 2022 average
production of 144,389 boe/d was a 25% increase on a per share basis
over 2021, while fourth quarter production of 166,392 boe/d was up
15% over the third quarter and 43% over the fourth quarter of 2021,
both on a per share basis. Asset level outperformance continued in
the fourth quarter with average production exceeding fourth quarter
guidance of 165,000 boe/d, despite extreme cold weather that
reduced our production by approximately 10,000 boe/d for five days
in December.
- Return of Capital Strategy. Shareholder returns totalled
$480 million in 2022, including
$237 million in base dividends plus
$243 million of share repurchases.
Our current annual base dividend of $0.58 per share is 49% higher than the
$0.39 per share paid in 2022, which
was already 86% higher than our base dividend of $0.21 per share paid in 2021. We remain focused
on sustainable increases to our base dividend supplemented by share
repurchases and/or special dividends to meet our return of capital
framework.
- Balance Sheet Strength. Whitecap's year end net debt of
$1.9 billion equates to a debt to
EBITDA ratio7 of 0.7x and EBITDA to interest expense
ratio7 of 45.4x, both well within our bank covenants of
not greater than 4.0x and not less than 3.5x respectively. Net debt
has been reduced to $1.5 billion on
total debt capacity of $3.1 billion
with the closing of three non-strategic asset dispositions
subsequent to year end, further strengthening the Company's balance
sheet.
2022 Year End Reserves
Our 2022 year end reserves were excellent across all categories
and metrics as strong operational execution was enhanced by our
successful acquisition strategy. We continue to see significant
synergies through the integration of assets acquired since late
2020 and, when combined with operational outperformance, has led to
increased profitability for our shareholders.
The strategic acquisitions completed in 2022, most notably the
XTO acquisition with assets in the Montney and Duvernay, have further enhanced our
unconventional asset base, adding multi-decade growth potential to
complement our low decline, high netback conventional oil asset
base. Pro forma the recent dispositions, we now have 6,584 (5,675
net) drilling locations5 of which only 36% of such
locations have been booked in our reserve report, which provides us
with over 25 years of profitable and sustainable growth in
production and funds flow.
We highlight the following 2022 year end reserve report
results:
- Focused on Per Share Results. PDP reserves increased 18%
to 377.2 million boe, TP reserves increased 47% to 803.5 million
boe and total proved plus probable ("TPP") reserves increased 58%
to 1,218.3 million boe, compared to the prior year. On a per share
basis, PDP reserves increased 19%, TP reserves increased 49% and
TPP reserves increased 61%.
- Long-Term Sustainability. PDP, TP and TPP reserve life
index ("RLI") of 6.2 years, 13.2 years and 20.1 years,
respectively, reflects our unique asset base, which combines low
decline, long life oil weighted assets with a deep inventory of
unconventional high impact assets, providing for long-term
sustainable and profitable growth.
- Profitable Growth Drives Strong Recycle Ratios. Our TP
FD&A cost of $16.15 per boe and
TPP FD&A cost of $12.28 per boe
generated recycle ratios of 2.9x and 3.8x, respectively. Our PDP
F&D cost of $13.20 per boe
generated a recycle ratio of 3.6x and reflects strong operational
execution by our teams in 2022. Our TP and TPP recycle ratios
increased 32% and 43%, respectively as compared to 2021.
- Growing Net Present Value per Share. PDP NPV, using a
10% discount rate1, increased by 42% to $10.67 per share, TP NPV increased by 77% to
$19.08 per share and TPP NPV
increased by 81% to $27.60 per share,
as compared to the prior year. The NPV calculations performed by
McDaniel used an average 2023-2027 WTI price of US$78.51/bbl (three consultants average).
Outlook
Our focus in 2023 is continued operational execution to achieve
our production guidance of 160,000 – 162,000 boe/d (13% production
per share growth) and our capital expenditure guidance of
$900 - $950
million.
Our 2023 financial milestones we look forward to reporting to
shareholders on are (1) achieving net debt of $1.3 billion which represents a debt to EBITDA
ratio of 1.0x at a stress test price deck of US$50/bbl WTI and $3.50/GJ AECO, (2) further increasing our monthly
dividend by 26% to $0.0608 per share
($0.73 per share/annum), and (3)
returning 75% of free funds flow back to shareholders which
includes our targeted annual dividend of $0.73 per share.
Our balance sheet is in excellent shape, with net debt currently
at $1.5 billion which represents a
debt to EBITDA ratio of 0.7x at current strip prices8
and provides us with $1.6 billion of
undrawn capacity. Our balance sheet will continue to strengthen
further to approximately $1.0 -
$1.2 billion by year end 2023.
Over the next five years, we are targeting organic production
growth to 200,000 boe/d, which is forecasted to generate over
$4.5 billion of free funds flow
(~$7.35 per share) at US$75/bbl WTI and $3.50/GJ AECO.
Our strategy is to provide shareholders with sustainable
production per share growth (3% - 8% per year) combined with a
stable and growing dividend. Beyond 2023, we will continue to look
for opportunities to enhance our organic growth plans and long-term
value through business development initiatives.
On behalf of our employees, management team and Board of
Directors, we would like to thank our shareholders for their
support and look forward to updating you on our progress throughout
the year.
NOTES
1 Funds flow,
funds flow basic ($/share), funds flow diluted ($/share) and net
debt are capital management measures. Total payout ratio, average
realized price, petroleum and natural gas revenues, and NPV (10%
discount rate) per share figures are supplementary financial
measures. Operating netback and free funds flow are non-GAAP
financial measures. Operating netbacks ($/boe), F&D costs,
FD&A costs, recycle ratio and free funds flow per share are
non-GAAP ratios. Refer to the Specified Financial Measures section
in this press release for additional disclosure and
assumptions.
|
2 Also referred to herein as
"capital expenditures".
|
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 and Product Type
Information in this press release for additional
disclosure.
|
4 Prior to the impact of risk
management activities and tariffs.
|
5 Disclosure of drilling
locations in this press release consists of proved, probable and
unbooked locations and their respective quantities on a gross and
net basis as disclosed herein. Refer to Drilling Locations in this
press release for additional disclosure.
|
6 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.
|
7 Debt to EBITDA
ratio and EBITDA to interest expense ratio are specified financial
measures that are calculated in accordance with the financial
covenants in our credit agreement.
|
8 Based on the following
commodity pricing and exchange rate assumptions: WTI of US$76/bbl,
USD/CAD of $1.35 and AECO of C$2.49/GJ.
|
2022 RESERVES REVIEW
Our 2022 year end reserves were evaluated by independent
reserves evaluator McDaniel & Associates Consultants Ltd.
("McDaniel") in accordance with the definitions, standards and
procedures contained in the Canadian Oil and Gas Evaluation
Handbook ("COGE Handbook") and National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities ("NI
51-101") as of December 31, 2022. The
reserves evaluation was based on the average forecast pricing of
McDaniel, GLJ Ltd. and Sproule Associates Limited and foreign
exchange rates at January 1, 2023
which is available on McDaniel's website at www.mcdan.com.
Reserves included are Company share reserves which are the
Company's total working interest reserves before the deduction of
any royalties and including any royalty interests payable to the
Company. Reserves related to the dispositions that closed
subsequent to December 31, 2022, are
included. Additional reserve information as required under NI
51-101 will be included in our Annual Information Form which will
be filed on SEDAR. The numbers in the tables below may not add due
to rounding.
Summary of Reserves
Reserves as at December 31,
2022
|
Company Share
Reserves
|
Description
|
Light & Medium Oil
(Mbbl)
|
Tight Crude Oil
(Mbbl)
|
Conventional
Natural Gas
(MMcf)
|
Proved developed
producing
|
220,371
|
324
|
377,396
|
Proved developed
non-producing
|
2,941
|
727
|
6,172
|
Proved
undeveloped
|
106,514
|
9,393
|
190,648
|
Total proved
|
329,827
|
10,444
|
574,216
|
Probable
|
119,065
|
8,851
|
242,773
|
Total proved plus
probable
|
448,892
|
19,295
|
816,989
|
Description
|
Shale Gas
(MMcf)
|
Natural Gas Liquids
Mbbl)
|
Total (Mboe)
|
Proved developed
producing
|
266,241
|
49,224
|
377,192
|
Proved developed
non-producing
|
47,926
|
4,101
|
16,786
|
Proved
undeveloped
|
944,099
|
104,466
|
409,498
|
Total proved
|
1,258,266
|
157,791
|
803,475
|
Probable
|
877,640
|
100,163
|
414,815
|
Total proved plus
probable
|
2,135,906
|
257,954
|
1,218,291
|
Net Present Values of Future Net Revenue
Summary of Before Tax Net Present Values of Future Net Revenue
(Forecast Pricing)
As at December 31, 2022
|
Before Tax Net
Present Value ($ millions) (1)
|
|
Discount
Rate
|
Reserves
Category
|
0 %
|
5 %
|
10 %
|
15 %
|
20 %
|
Proved Developed
Producing
|
9,551
|
7,916
|
6,563
|
5,638
|
4,984
|
Proved developed
non-producing
|
491
|
407
|
353
|
315
|
286
|
Proved
undeveloped
|
9,962
|
6,728
|
4,813
|
3,584
|
2,747
|
Total
Proved
|
20,004
|
15,051
|
11,729
|
9,537
|
8,016
|
Total
Probable
|
14,061
|
7,967
|
5,240
|
3,754
|
2,845
|
Total Proved +
Probable
|
34,065
|
23,018
|
16,969
|
13,291
|
10,861
|
(1)
Includes abandonment and reclamation costs as defined in NI 51-101
for all of our facilities, pipelines and wells including those
without reserves assigned.
|
Future Development Costs ("FDC")
FDC reflects the best estimate of the capital cost to develop
and produce reserves. FDC associated with our TP reserves at year
end 2022 is $6.3 billion undiscounted
($4.6 billion discounted at 10%).
Also included in FDC are 1,584 (1,359 net) proved booked
drilling locations and 367 (304 net) probable booked drilling
locations.
($ millions)
|
Total Proved
|
Total Proved plus
Probable
|
2023
|
862
|
906
|
2024
|
1,164
|
1,214
|
2025
|
1,284
|
1,433
|
2026
|
1,132
|
1,275
|
2027
|
930
|
1,263
|
Remainder
|
940
|
2,216
|
Total FDC,
Undiscounted
|
6,312
|
8,307
|
Total FDC, Discounted
at 10%
|
4,576
|
5,797
|
Performance Measures (Including FDC)
The following table highlights F&D and FD&A costs and
associated recycle ratios, including FDC, based on the evaluation
of our petroleum and natural gas reserves prepared by McDaniel:
|
2022
|
2021
|
2020
|
Three
Year
Weighted
Average
|
Proved Developed
Producing
|
|
|
|
|
F&D costs
(1)
|
$13.20
|
$16.28
|
$21.87
|
$16.28
|
F&D recycle ratio
(2)
|
3.6x
|
1.8x
|
0.9x
|
2.3x
|
FD&A costs
(3)
|
$27.34
|
$14.95
|
$19.25
|
$21.10
|
FD&A recycle ratio
(2)
|
1.7x
|
2.0x
|
1.1x
|
1.7x
|
Total
Proved
|
|
|
|
|
F&D costs
(1)
|
$16.90
|
$5.05
|
$3.61
|
$10.30
|
F&D recycle ratio
(2)
|
2.8x
|
5.9x
|
5.7x
|
4.4x
|
FD&A costs
(3)
|
$16.15
|
$13.67
|
$14.74
|
$15.06
|
FD&A recycle ratio
(2)
|
2.9x
|
2.2x
|
1.4x
|
2.4x
|
Total Proved Plus
Probable
|
|
|
|
|
F&D costs
(1)
|
$19.53
|
$4.63
|
$19.16
|
$14.86
|
F&D recycle ratio
(2)
|
2.4x
|
6.4x
|
1.1x
|
3.4x
|
FD&A costs
(3)
|
$12.28
|
$11.22
|
$12.51
|
$12.00
|
FD&A recycle ratio
(2)
|
3.8x
|
2.7x
|
1.7x
|
3.0x
|
(1)
F&D costs are calculated as the sum of development capital of
$669.9 million (excluding corporate and capitalized G&A) plus
the change in FDC for the period of -$34.0 million (PDP), $200.5
million (TP) and $278.5 million (TPP), divided by the change in
reserves volumes that are characterized as development for the
period.
|
(2)
Recycle ratio is calculated as operating netback divided by F&D
or FD&A costs. Our operating netback in 2022 was
$47.03/boe.
|
(3)
FD&A costs are calculated as the sum of development capital of
$669.9 million (excluding corporate and capitalized G&A) plus
acquisition capital of $2,349.5 million plus the change in FDC for
the period of $10.7 million (PDP), $1,791.1 million (TP) and
$2,862.9 million (TPP), divided by the change in total reserves
volumes, other than from production, for the
period.
|
Production Replacement Ratio and Reserve Life Index
The following table highlights our production replacement ratio
and reserve life index ("RLI") based on the evaluation of our
petroleum and natural gas reserves prepared by McDaniel:
|
2022
|
2021
|
2020
|
Three
Year
Weighted
Average
|
Proved Developed
Producing
|
|
|
|
|
Production replacement
(1)
|
208 %
|
372 %
|
34 %
|
226 %
|
RLI (years)
(2)
|
6.2
|
7.3
|
9.0
|
7.2
|
Total
Proved
|
|
|
|
|
Production replacement
(1)
|
589 %
|
545 %
|
101 %
|
471 %
|
RLI (years)
(2)
|
13.2
|
12.5
|
15.6
|
13.5
|
Total Proved Plus
Probable
|
|
|
|
|
Production replacement
(1)
|
952 %
|
737 %
|
100 %
|
712 %
|
RLI (years)
(2)
|
20.1
|
17.6
|
21.8
|
19.7
|
(1)
Production replacement ratio is calculated as total reserve
additions (including acquisitions net of dispositions) divided by
annual production. Whitecap's production averaged 144,389 boe/d in
2022.
|
(2)
RLI is calculated as total Company share reserves divided by the
annualized fourth quarter actual production of 166,392
boe/d.
|
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,
February 23, 2023.
The conference call dial-in number is:
1-888-390-0605 or (587) 880-2175 or (416) 764-8609
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 continue to enhance our long
term sustainability; the future value of our reserves; our
estimated future drilling locations associated with the XTO
acquisitions; our belief that the XTO acquisition significantly
increases the sustainability of our dividend plus growth model; our
strategy of operational execution enhanced by strategic
acquisitions; our focus on sustainable increases to our base
dividend supplemented by share repurchases and/or special dividends
to meet our return of capital framework; that we continue to see
significant synergies through the integration of assets acquired
since late 2020; our belief that the strategic acquisitions
completed in 2022 added multi-decade growth potential to complement
our low decline, high netback conventional oil asset base; our
estimated future drilling locations associated with our assets,
which provide us with over 25 years of profitable and sustainable
growth in production and funds flow; our RLI calculations;
our belief that our unique asset base, which combines low
decline, long life oil weighted assets with a deep inventory of
unconventional high impact assets, provides for long-term
sustainable and profitable growth; that our focus in 2023 is
continued operational execution; our forecasts for average daily
production (including by product type) production per share growth
and capital expenditures for 2023; our 2023 financial milestones
including, (1) achieving net debt of $1.3
billion which represents a debt to EBITDA ratio of 1.0x at a
stress test price deck of US$50/bbl
WTI and $3.50/GJ AECO, (2) further
increasing our monthly dividend by 26% to $0.0608 per share, and (3) returning 75% of free
funds flow back to shareholders which includes our targeted annual
dividend of $0.73 per share; that our
balance sheet will continue to strengthen further through 2023; our
target net debt of $1.0 -
$1.2 billion; that over the next five
years we are targeting organic production growth to 200,000 boe/d,
which is forecasted to generate over $4.5
billion of free funds flow at US$75/bbl WTI and $3.50/GJ AECO; that our strategy is to provide
shareholders with sustainable production per share growth (3% - 8%
per year) combined with a stable and growing dividend; that beyond
2023 we will continue to look for opportunities to enhance our
organic growth plans and long-term value through business
development initiatives; and, our future development costs.
Statements relating to "reserves" are also deemed to be
forward-looking statements, as they involve the implied assessment,
based on certain estimates and assumptions, that the reserves
described exist in the quantities predicted or estimated and that
the reserves can be profitably produced in the future.
The forward-looking information is based on certain key
expectations and assumptions made by our management, including:
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 other than as
disclosed herein); 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 impact
(and the duration thereof) that the COVID-19 pandemic will have on
(i) the demand for crude oil, NGLs and natural gas, (ii) our supply
chain, including our ability to obtain the equipment and services
we require, and (iii) our ability to produce, transport and/or sell
our crude oil, NGLs and natural gas; 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
between Russia and Ukraine and related sanctions on crude oil,
NGLs and natural gas prices; the impact of rising and/or sustained
high inflation rates and 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; reserve 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 state of the economy and the exploration
and production business; results of operations; performance;
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; ability to market oil
and natural gas successfully; and our ability to access capital and
the cost and terms thereof.
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 they involve
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 buybacks 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 2023
forecasts and forecasts for the next five years (including for
commodity prices and exchange rates); the risks associated with the
oil and gas industry in general such as operational risks in
development, exploration and production; 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 high inflation rates, high 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; 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; ability 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, production curtailment, royalties and
environmental regulations; and the risk that the amount of future
cash dividends paid by us and/or shares repurchased for
cancellation by us, if any, will be subject to the discretion of
our Board of Directors and may vary depending on a variety of
factors and conditions existing from time to time, including, among
other things, fluctuations in commodity prices, production levels,
capital expenditure requirements, debt service requirements,
operating costs, royalty burdens, foreign exchange rates,
contractual restrictions contained in our debt agreements, and the
satisfaction of the liquidity and solvency tests imposed by
applicable corporate law for the declaration and payment of
dividends and/or the repurchase of shares – depending on these and
various other factors, many of which will be beyond our control,
our dividend policy and/or share buyback policy and, as a result,
future cash dividends and/or share buybacks, could be reduced or
suspended entirely. Our actual results, performance or achievement
could differ materially from those expressed in, or implied by, the
forward-looking information and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
information will transpire or occur, or if any of them do so, what
benefits that we will derive therefrom. Management has included the
above summary of assumptions and risks related to forward-looking
information provided in this press release in order to provide
security holders with a more complete perspective on our future
operations and such information may not be appropriate for other
purposes.
Readers are cautioned that the foregoing lists of factors are
not exhaustive. Additional information on these and other factors
that could affect our operations or financial results are included
in reports on file with applicable securities regulatory
authorities and may be accessed through the SEDAR website
(www.sedar.com).
These forward-looking statements are made as of the date of this
press release and we disclaim any intent or obligation to update
publicly any forward-looking information, whether as a result of
new information, future events or results or otherwise, other than
as required by applicable securities laws.
This press release contains future-oriented financial
information and financial outlook information (collectively,
"FOFI") about Whitecap's forecast 2023 capital expenditures, our
2023 financial milestones including reaching net debt of
$1.3 billion, our targeted annual
base dividend level of $0.73 per
share, and the percent of free funds flow to be returned to
shareholders based on reaching our net debt target of $1.3 billion, our 2023 targeted net debt of
$1.0 - $1.2
billion, our forecasted cumulative free funds flow over the
next five years (including on a per share basis) at US$75/bbl WTI and $3.50/GJ AECO all of which are subject to the
same assumptions, risk factors, limitations, and qualifications as
set forth in the above paragraphs. The actual results of operations
of Whitecap and the resulting financial results will likely vary
from the amounts set forth herein and such variation may be
material. Whitecap and its management believe that the FOFI has
been prepared on a reasonable basis, reflecting management's best
estimates and judgments. However, because this information is
subjective and subject to numerous risks, it should not be relied
on as necessarily indicative of future results. Except as required
by applicable securities laws, Whitecap undertakes no obligation to
update such FOFI. FOFI contained in this press release was made as
of the date of this press release and was provided for the purpose
of providing further information about Whitecap's anticipated
future business operations. Readers are cautioned that the FOFI
contained in this press release should not be used for purposes
other than for which it is disclosed herein.
OIL AND GAS ADVISORIES
Reserves Volumes and Net Present Values
All reserve references in this press release are "Company share
reserves". Company share reserves are our total working interest
reserves before the deduction of any royalties and including any
royalty interests payable to the Company.
It should not be assumed that the present worth of estimated
future amounts presented in the tables above represents the fair
market value of the reserves. There is no assurance that the
forecast prices and costs assumptions will be attained, and
variances could be material. The recovery and reserve estimates of
the crude oil, natural gas liquids and natural gas reserves
provided herein are estimates only and there is no guarantee that
the estimated reserves will be recovered. Actual crude oil, natural
gas and natural gas liquids reserves may be greater than or less
than the estimates provided herein.
Barrel of Oil Equivalency
"Boe" means barrel of oil equivalent. All boe
conversions in this press release are derived by converting gas to
oil at the ratio of six thousand cubic feet ("Mcf") of
natural gas to one barrel ("Bbl") of oil. Boe may be misleading,
particularly if used in isolation. A Boe conversion rate of 1 Bbl :
6 Mcf is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. Given that the value ratio of oil
compared to natural gas based on currently prevailing prices is
significantly different than the energy equivalency ratio of 1 Bbl
: 6 Mcf, utilizing a conversion ratio of 1 Bbl : 6 Mcf may be
misleading as an indication of value.
Oil and Gas Metrics
This press release contains metrics commonly used in the oil and
natural gas industry which have been prepared by management,
such as "acquisition capital", "development capital",
"F&D costs", "FD&A costs", "operating
netback", "production replacement", "production
replacement ratio", "recycle ratio", and "reserve
life index". These terms do not have a standardized meaning and
may not be comparable to similar measures presented by other
companies, and therefore should not be used to make such
comparisons.
"Acquisition capital" is a non-GAAP financial measure
used in the determination of FD&A costs, which is a non-GAAP
ratio. The most directly comparable GAAP measure to
acquisition capital is expenditures on corporate acquisitions, net
of cash acquired, and expenditures on property acquisitions.
Acquisition capital includes net property acquisitions less any
non-cash amounts and the announced purchase price of corporate
acquisitions including any estimated working capital deficit or
surplus rather than the amounts allocated to property, plant and
equipment for accounting purposes and the aggregate exploration and
development capital spending within the year on reserves that are
categorized as acquisitions less the disposition of certain
processing facilities. The following table details the
calculation of Acquisition capital:
|
Year ended
Dec. 31,
|
($
millions)
|
2022
|
2021
|
2020
|
Expenditures on
property acquisitions
|
8.0
|
130.8
|
5.4
|
Add: non-cash
consideration for property acquisitions
|
0.6
|
21.9
|
-
|
Corporate
acquisitions
|
2,364.9
|
1,848.8
|
17.0
|
Less: Property
dispositions
|
24.0
|
113.5
|
-
|
Acquisition
Capital
|
2,349.5
|
1,888.0
|
22.4
|
"Development capital" is a non-GAAP financial measure used
in the determination of F&D costs and FD&A costs, which are
non-GAAP ratios. The most directly comparable GAAP measure to
development capital is expenditures on property, plant and
equipment. Development capital means the aggregate exploration and
development costs incurred in the financial year on reserves that
are categorized as development. Development capital excludes
capitalized administration costs. The following table reconciles
expenditures on property, plant and equipment to Development
Capital:
|
Year ended
Dec. 31,
|
($
millions)
|
2022
|
2021
|
2020
|
Expenditures on
property, plant and equipment
|
686.5
|
428.5
|
195.9
|
Less: expenditures on
corporate and capitalized general and administrative
expenses
|
16.6
|
14.6
|
8.2
|
Development
Capital
|
669.9
|
413.9
|
187.7
|
"F&D costs" are calculated as the sum of development
capital (excluding corporate and capitalized general and
administrative expense) plus the change in FDC for the period when
appropriate, divided by the change in reserves that are
characterized as development for the period. Development capital is
a non-GAAP financial measure used as a component of F&D costs.
Management uses F&D costs as a measure of capital efficiency
for organic reserves development.
"FD&A costs" are calculated as the sum of development
capital (excluding corporate and capitalized general and
administrative expense) plus acquisition capital plus the change in
FDC for the period when appropriate, divided by the change in total
reserves, other than from production, for the period. Development
capital and acquisition capital are non-GAAP financial measures
used as components of FD&A costs. Management uses FD&A
costs as a measure of capital efficiency for organic and acquired
reserves development.
"Production replacement ratio" or
"production replacement" is calculated as total
reserve additions (including acquisitions net of dispositions)
divided by annual production.
"Recycle ratio" is calculated by dividing
operating netback per boe by F&D costs or FD&A costs for
the year. Operating netback per boe is a non-GAAP ratio that uses
operating netback, a non-GAAP financial measure, as a component.
Development capital, a non-GAAP financial measure, is used as a
component of F&D costs. Development capital and acquisition
capital, both non-GAAP financial measures, are used as components
of FD&A costs. Management uses recycle ratio to relate the cost
of adding reserves to the expected cash flows to be generated.
"Reserve life index" or "RLI"
is calculated as total Company share reserves divided by annualized
fourth quarter actual production.
Management uses these oil and gas metrics for its own
performance measurements and to provide shareholders with measures
to compare our operations over time. Readers are cautioned that the
information provided by these metrics, or that can be derived from
the metrics presented in this press release, should not be relied
upon for investment or other purposes.
Drilling Locations
This press release discloses drilling inventory in two
categories: (i) booked locations (proved and probable); and (ii)
unbooked locations. Booked locations represent the summation of
proved and probable locations, which are derived from McDaniel's
reserves evaluation effective December 31,
2022 and account for drilling locations that have associated
proved and/or probable reserves, as applicable. Unbooked locations
are internal estimates based on our prospective acreage and an
assumption as to the number of wells that can be drilled per
section based on industry practice and internal review. Unbooked
locations do not have attributed reserves or resources.
- Of the 6,584 (5,675 net) total drilling locations identified
herein, 1,440 (1,238 net) are proved locations, 309 (254 net) are
probable locations, and 4,835 (4,183 net) are unbooked
locations.
- Of the over 2,000 drilling locations identified herein on the
XTO lands, there are 2,024 (1,910 net) total locations, of which
148 (130 net) are proved locations, 89 (83 net) are probable
locations, and 1,787 (1,697 net) are unbooked locations.
Unbooked locations have been identified by management as an
estimation of our multi-year drilling activities based on
evaluation of applicable geologic, seismic, engineering, production
and reserves information. There is no certainty that we will drill
all of these drilling locations and if drilled there is no
certainty that such locations will result in additional oil and gas
reserves, resources or production. The drilling locations on which
we drill wells will ultimately depend upon the availability of
capital, regulatory approvals, seasonal restrictions, oil and
natural gas prices, costs, actual drilling results, additional
reservoir information that is obtained and other factors. While
certain of the unbooked drilling locations have been de-risked by
drilling existing wells in relative close proximity to such
unbooked drilling locations, other unbooked drilling locations are
farther away from existing wells where management has less
information about the characteristics of the reservoir and
therefore there is more uncertainty whether wells will be drilled
in such locations and if drilled there is more uncertainty that
such wells will result in additional oil and gas reserves,
resources or production.
Production & Product Type Information
References to petroleum, crude oil, natural gas liquids
("NGLs"), natural gas and average daily production in this press
release refer to the light and medium crude oil, tight crude oil,
conventional natural gas, shale gas and NGLs product types, as
applicable, as defined in NI 51-101.
NI 51-101 includes condensate within the NGLs product type. The
Company has disclosed condensate as combined with crude oil and
separately from other NGLs since the price of condensate as
compared to other NGLs is currently significantly higher and the
Company believes that this crude oil and condensate presentation
provides a more accurate description of its operations and results
therefrom. Crude oil therefore refers to light oil, medium oil,
tight oil and condensate. NGLs refers to ethane, propane, butane
and pentane combined. Natural gas refers to conventional natural
gas and shale gas combined.
The Company's average daily production for the quarters and
years ended December 31, 2022 and
2021, forecast average daily production for the quarter and year
ended December 31, 2022, average
daily production acquired from the XTO transaction, average daily
production impacted by weather related downtime, and forecast
average daily production for 2023 disclosed in this press release
consists of the following product types, as defined in NI 51-101
(other than as noted above with respect to condensate) and using a
conversion ratio of 1 Bbl : 6 Mcf where applicable:
|
Q4/2022
|
Q4/2022
Guidance
|
2022
|
2022
Guidance
|
Light and medium oil
(bbls/d)
|
80,776
|
81,210
|
80,441
|
80,550
|
Tight oil
(bbls/d)
|
11,036
|
8,750
|
5,976
|
5,400
|
Crude oil
(bbls/d)
|
91,812
|
89,960
|
86,417
|
85,950
|
|
|
|
|
|
NGLs
(bbls/d)
|
17,473
|
17,625
|
15,521
|
15,555
|
|
|
|
|
|
Shale gas
(Mcf/d)
|
181,478
|
189,820
|
97,299
|
99,400
|
Conventional natural
gas (Mcf/d)
|
161,162
|
154,668
|
157,409
|
155,570
|
Natural gas
(Mcf/d)
|
342,640
|
344,488
|
254,708
|
254,970
|
|
|
|
|
|
Total
(boe/d)
|
166,392
|
165,000
|
144,389
|
144,000
|
|
|
Q4/2021
|
2021
|
2023 Guidance
(Mid-point)
|
Light and medium oil
(bbls/d)
|
|
75,628
|
73,458
|
72,500
|
Tight oil
(bbls/d)
|
|
3,687
|
1,929
|
13,000
|
Crude oil
(bbls/d)
|
|
79,315
|
75,387
|
85,500
|
|
|
|
|
|
NGLs
(bbls/d)
|
|
10,568
|
10,418
|
17,000
|
|
|
|
|
|
Shale gas
(Mcf/d)
|
|
42,993
|
20,402
|
207,000
|
Conventional natural
gas (Mcf/d)
|
|
137,827
|
138,099
|
144,000
|
Natural gas
(Mcf/d)
|
|
180,820
|
158,501
|
351,000
|
|
|
|
|
|
Total
(boe/d)
|
|
120,020
|
112,222
|
161,000
|
|
|
|
XTO
Acquisition
|
Weather
Downtime
|
Light and medium oil
(bbls/d)
|
|
|
-
|
5,350
|
Tight oil
(bbls/d)
|
|
|
7,100
|
400
|
Crude oil
(bbls/d)
|
|
|
7,100
|
5,750
|
|
|
|
|
|
NGLs
(bbls/d)
|
|
|
2,700
|
800
|
|
|
|
|
|
Shale gas
(Mcf/d)
|
|
|
133,200
|
8,800
|
Conventional natural
gas (Mcf/d)
|
|
|
-
|
11,900
|
Natural gas
(Mcf/d)
|
|
|
133,200
|
20,700
|
|
|
|
|
|
Total
(boe/d)
|
|
|
32,000
|
10,000
|
SPECIFIED FINANCIAL MEASURES
This press release includes various specified financial
measures, including non-GAAP financial measures, non-GAAP ratios,
capital management measures and supplementary financial measures as
further described herein. These financial measures are not
standardized financial measures under International Financial
Reporting Standards ("IFRS" or, alternatively, "GAAP") and,
therefore, may not be comparable with the calculation of similar
financial measures disclosed by other companies.
"Acquisition Capital" and "Development Capital"
are non-GAAP financial measures and, "F&D Costs", "FD&A
Costs" and "recycle ratio" are non-GAAP ratios. See
"Oil and Gas Metrics".
"Average realized prices" for crude oil, NGLs and natural
gas are supplementary financial measures calculated by dividing
each of these components of petroleum and natural gas revenues,
disclosed in Note 16 "Revenue" to the Company's audited annual
consolidated financial statements for the year ended December 31, 2022, by their respective production
volumes for the period.
"Free funds flow" is a non-GAAP financial
measure calculated as funds flow less expenditures on
property, plant and equipment ("PP&E"). Management believes
that free funds flow provides a useful measure of Whitecap's
ability to increase returns to shareholders and to grow the
Company's business. Free funds flow is not a standardized financial
measure under IFRS and, therefore, may not be comparable with the
calculation of similar financial measures disclosed by other
entities. The most directly comparable financial measure to free
funds flow disclosed in the Company's primary financial statements
is cash flow from operating activities. Refer to the "Cash Flow
from Operating Activities, Funds Flow and Payout Ratios" section of
our management's discussion and analysis for the year ended
December 31, 2022 which is
incorporated herein by reference, and available on SEDAR at
www.sedar.com. In addition, see the following table which
reconciles cash flow from operating activities to funds flow and
free funds flow:
|
Three months ended
Dec. 31,
|
Year ended
Dec. 31,
|
($
millions)
|
2022
|
2021
|
2022
|
2021
|
Cash flow from
operating activities
|
555.8
|
329.2
|
2,183.1
|
1,124.0
|
Net change in non-cash
working capital items
|
37.8
|
21.4
|
139.7
|
(25.3)
|
Funds flow
|
593.6
|
350.6
|
2,322.8
|
1,098.7
|
Expenditures on
PP&E
|
179.0
|
135.0
|
686.5
|
428.5
|
Free funds
flow
|
414.6
|
215.6
|
1,636.3
|
670.2
|
Total payout ratio
(%)
|
41
|
51
|
40
|
50
|
Funds flow per share,
basic
|
0.97
|
0.56
|
3.77
|
1.84
|
Funds flow per share,
diluted
|
0.97
|
0.55
|
3.74
|
1.82
|
"Free funds flow per share" is a non-GAAP ratio calculated by
dividing free funds flow by the weighted average number of diluted
shares outstanding for the relevant period. Free funds flow is a
non-GAAP financial measure component of free funds flow per share.
Free funds flow per share is not a standardized financial measure
under IFRS and therefore may not be comparable with the calculation
of similar financial measures disclosed by other entities.
"Funds flow", "funds flow basic ($/share)" and
"funds flow diluted ($/share)" are capital management measures
and are key measures of operating performance as they demonstrate
Whitecap's ability to generate the cash necessary to pay dividends,
repay debt, make capital investments, and/or to repurchase common
shares under the Company's normal course issuer bid. Management
believes that by excluding the temporary impact of changes in
non-cash operating working capital, funds flow, funds flow basic
($/share) and funds flow diluted ($/share) provide useful measures
of Whitecap's ability to generate cash that are not subject to
short-term movements in non-cash operating working capital.
Whitecap reports funds flow in total and on a per share basis
(basic and diluted), which is calculated by dividing funds flow by
the weighted average number of basic shares and weighted average
number of diluted shares outstanding for the relevant period. See
Note 5(e)(ii) "Capital Management – Funds Flow" in the Company's
audited annual consolidated financial statements for the year ended
December 31, 2022 for additional
disclosures.
"Net Debt" is a capital management measure
that management considers to be key to assessing the Company's
liquidity. See Note 5(e)(i) "Capital Management – Net Debt and
Total Capitalization" in the Company's audited annual consolidated
financial statements for the year ended December 31, 2022 for additional disclosures. The
following table reconciles the Company's long-term debt to net
debt:
|
|
Year ended Dec.
31,
|
Net Debt ($
millions)
|
|
|
2022
|
2021
|
Long-term
debt
|
|
|
1,844.6
|
1,055.7
|
Accounts
receivable
|
|
|
(480.2)
|
(304.8)
|
Deposits and prepaid
expenses
|
|
|
(22.7)
|
(10.5)
|
Accounts payable and
accrued liabilities
|
|
|
549.1
|
400.4
|
Dividends
payable
|
|
|
22.3
|
13.8
|
Net Debt
|
|
|
1,913.1
|
1,154.6
|
"NPV (10% discount rate) per share figures" are
supplementary financial measures and are comprised of the before
tax NPV for PDP, TP and TPP reserves, discounted at 10 percent, as
determined in accordance with NI 51-101, divided by diluted
weighted average common shares outstanding for the period.
"Operating netback" is a non-GAAP financial measure
determined by adding marketing revenues and processing & other
income, deducting realized losses on commodity risk management
contracts or adding realized gains on commodity risk management
contracts and deducting tariffs, royalties, operating expenses,
transportation expenses and marketing expenses from petroleum and
natural gas revenues. The most directly comparable financial
measure to operating netback disclosed in the Company's primary
financial statements is petroleum and natural gas sales. Operating
netback is a measure used in operational and capital allocation
decisions. Operating netback is not a standardized financial
measure under IFRS and, therefore, may not be comparable with the
calculation of similar financial measures disclosed by other
entities. For further information, refer to the "Operating
Netbacks" section of our management's discussion and analysis for
the year ended December 31, 2022,
which is incorporated herein by reference, and available on SEDAR
at www.sedar.com. A reconciliation of operating netbacks to
petroleum and natural gas revenues is set out below:
|
Three months ended
Dec. 31,
|
Year ended Dec.
31,
|
Operating Netbacks
($ millions)
|
2022
|
2021
|
2022
|
2021
|
Petroleum and natural
gas revenues
|
1,116.5
|
785.8
|
4,452.9
|
2,526.3
|
Tariffs
|
(7.5)
|
(5.3)
|
(24.1)
|
(17.6)
|
Processing & other
income
|
11.8
|
7.5
|
35.9
|
30.5
|
Marketing
revenues
|
90.8
|
47.9
|
315.7
|
154.8
|
Petroleum and natural
gas sales
|
1,211.6
|
835.9
|
4,780.4
|
2,694.0
|
Realized loss on
commodity contracts
|
(21.9)
|
(89.8)
|
(245.5)
|
(243.3)
|
Royalties
|
(204.2)
|
(144.5)
|
(861.8)
|
(415.9)
|
Operating
expenses
|
(216.3)
|
(149.0)
|
(766.3)
|
(556.3)
|
Transportation
expenses
|
(32.5)
|
(23.4)
|
(114.8)
|
(90.2)
|
Marketing
expenses
|
(89.8)
|
(48.0)
|
(313.0)
|
(155.8)
|
Operating
netbacks
|
646.9
|
381.2
|
2,479.0
|
1,232.5
|
"Operating netback ($/boe)" is a non-GAAP ratio calculated by
dividing operating netbacks by the total production for the period.
Operating netback is a non-GAAP financial measure component of
operating netback per boe. Operating netback per boe is not a
standardized financial measure under IFRS and, therefore may not be
comparable with the calculation of similar financial measures
disclosed by other entities. Presenting operating netback on a per
boe basis allows management to better analyze performance against
prior periods on a comparable basis.
"Petroleum and natural gas revenues ($/boe)" is a
supplementary financial measure calculated by dividing this
component of petroleum and natural gas sales, disclosed in Note 16
"Revenue" to the Company's audited annual consolidated financial
statements for the year ended December 31,
2022, by the Company's total production volumes for the
period.
"Total payout ratio" is a supplementary financial
measure calculated as dividends paid or declared plus expenditures
on PP&E, divided by funds flow. Management believes that total
payout ratio provides a useful measure of Whitecap's capital
reinvestment and dividend policy, as a percentage of the amount of
funds flow.
Per Share Amounts
Per share amounts noted in this press release are based on fully
diluted shares outstanding unless noted otherwise.
SOURCE Whitecap Resources Inc.