Precision Drilling Rig 275 in the Weyburn Unit. Photo by Brian Zinchuk

CALGARY – Whitecap Resources Inc. announced on Feb. 6 that it has closed all three previously announced dispositions of certain non-strategic assets for aggregate consideration of $419 million, including $394 million of cash, prior to closing adjustments, and producing assets that consolidate the working interest in one of its core assets.

On Dec. 19, Whitecap Resources announced three separate dispositions totalling 10,000 boepd. Without saying who the other party was, the first one was a match to a corresponding ROK Resources announcement, with a sale of 1,500 boepd and picking up 475 boepd. Call that Disposition A, and ROK announced their deal closed on Jan. 24, 2023.

Whitecap’s Disposition B was to a private company operating in Saskatchewan, and involved roughly 3,500 boepd of production, nearly all of which was in Saskatchewan, but a marginal amount of production in Manitoba was also included. Whitecap would not release where the production was, who the buyer was, or the dollar value.

Whitecap’s Disposition C was for 4,500 boepd production spread across Alberta to a private company operating in Alberta. Again, the price was not disclosed.

Whitecap said proceeds from the dispositions have been used to reduce net debt1 to $1.5 billion which accelerates achieving its net debt target of $1.3 billion to mid-2023, based on current strip prices. The company’s plan is to return 75 per cent of free funds flow to its shareholders, which includes its targeted $0.73 per share annual base dividend, once this $1.3 billion net debt milestone is achieved. The remaining 25 per cent of free funds flow will be used to continue to reduce debt and strengthen its balance sheet.

“We have successfully monetized these non-strategic assets at strong disposition metrics and look forward to demonstrating strong operational performance on our core assets in 2023. We expect to grow 2023 annual production to 160,000 – 162,000 boepd from our 2022 annual production of 144,000 boepd (13 per cent production per share growth) on capital expenditures4 of $900 – $950 million,” the company said in a release on Feb. 6.

Whitecap will be releasing its fourth quarter and year end 2022 results after market close on Wednesday, February 22, 2023.

 

  • 0075 Fast Trucking OutlaW Buckers 01
    0075 Fast Trucking OutlaW Buckers 01
  • 0074 General Well Servicing Outlaw Buckers
    0074 General Well Servicing Outlaw Buckers
  • 0073 SaskWorks-Pipeline Online
    0073 SaskWorks-Pipeline Online
  • 0072 Outlaw Buckers and Oil Kings 2024
    0072 Outlaw Buckers and Oil Kings 2024
  • 0069 Sask Oil Show 2024 banquet tickets
    0069 Sask Oil Show 2024 banquet tickets
  • 0071 Pride Upkeep 2024 Packages
    0071 Pride Upkeep 2024 Packages
  • 0070 Sask Oil Show 2024 pre-register
    0070 Sask Oil Show 2024 pre-register
  • 0068 Sask Oil Show 2024 booth
    0068 Sask Oil Show 2024 booth
  • 0067 PFM SaskWorks Payroll Investment Plan
    0067 PFM SaskWorks Payroll Investment Plan
  • 0066 WBPC Promo video 30 seconds
    0066 WBPC Promo video 30 seconds
  • 0064 Estevan OTS
    0064 Estevan OTS
  • 0063 Turnbull Excavating hiring crusher
    0063 Turnbull Excavating hiring crusher
  • 0062 TED_EPAC_Technology_30
    0062 TED_EPAC_Technology_30
  • 0061 SIMSA 2024 For Sask Buy Sask
    0061 SIMSA 2024 For Sask Buy Sask
  • 0058 Royal Helium Steveville opens anonymous rocket
    0058 Royal Helium Steveville opens anonymous rocket
  • 0055 Smart Power Be Smart with your Power office
    0055 Smart Power Be Smart with your Power office
  • 0052 Predator Inspections
    0052 Predator Inspections
  • 0051 JML Hiring Pumpjack assembly
    0051 JML Hiring Pumpjack assembly
  • 0049 Scotsburn Dental soft guitar
    0049 Scotsburn Dental soft guitar
  • 0046 City of Estevan This is Estevan
    0046 City of Estevan This is Estevan
  • 0041 DEEP Since 2018 now we are going to build
    0041 DEEP Since 2018 now we are going to build
  • 0032 IWS Summer hiring rock trailer music
  • 0022 Grimes winter hiring
  • 0021 OSY Rentals S8 Promo
  • 0018 IWS Hiring Royal Summer
  • 0015 Latus Viro
    0015 Latus Viro
  • 0013 Panther Drilling PO ad 03 top drive rigs
  • 0011
  • 0006 JK Junior
  • 0002 gilliss casing services
    0002 gilliss casing services
  • 9002 Pipeline Online 30 sec EBEX
    9002 Pipeline Online 30 sec EBEX
  • 9001

 

ROK Resources closes southeast Saskatchewan deal, provides guidance for first half

Whitecap, ROK Resources make separate announcements, but there’s plenty at play