Whitecap closes three deals, two of which were in Saskatchewan

Brian Zinchuk

Brian Zinchuk is editor and owner of Pipeline Online

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.

• 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
• 0065 Anova Resources field operator Oxbow
  0065 Anova Resources field operator Oxbow
• 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
• 0060 Arizona Lithium Lease building
  0060 Arizona Lithium Lease building
• 0059 Southeast College Heavy Equipment Operator
  0059 Southeast College Heavy Equipment Operator
• 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
• 0053 Kingston Midstream Westspur Alameda Click Before You Dig large text
  0053 Kingston Midstream Westspur Alameda Click Before You Dig large text
• 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