Whitecap Resources (OTCPK:SPGY.F) 2026 Investor Day Transcript

Summary of Whitecap Resources Investor Day Conference Call Company Overview - Company: Whitecap Resources - Market Capitalization: CAD 14 billion - Enterprise Value: CAD 17 billion - Daily Production: Approximately 372,500 BOE (Barrels of Oil Equivalent) per day, ranking as the seventh largest Canadian oil and natural gas producer - Natural Gas Production: 900 million cubic feet per day, making it the fifth largest gas producer in Canada - 2026 Capital Investment Plan: CAD 2-2.1 billion, projected to generate approximately CAD 3.3 billion of funds flow at $60 WTI and $3 AECO prices [7][8] Strategic Focus - Capital Allocation: Aimed at generating strong, durable returns for shareholders through disciplined investment and operational excellence [5][6] - Competitive Advantages: - High-quality inventory with depth and commodity optionality - Technical excellence and strong execution - Capital discipline to protect and compound shareholder value - Strong balance sheet to manage risk and maintain flexibility [6][7] Financial Health - Net Debt: CAD 3.3 billion, with a debt-to-funds flow ratio of 1:1 - Dividend: CAD 0.73 per share, yielding approximately 6-6.5% at current share price - Targeted Annual Total Return: 10-15% for shareholders [9][10] Asset Overview - Asset Types: Divided into unconventional (Montney and Duvernay) and conventional assets - Unconventional Assets: - 4,700 drilling locations with significant growth potential - Producing approximately 245,000 BOE per day, generating around CAD 900 million in annual free funds flow at current pricing [21][23] - Conventional Assets: - Producing about 140,000 BOE per day, primarily oil and NGLs - 5,800 locations with a multi-decade inventory, including enhanced oil recovery projects [58][59] Operational Achievements - Technical Improvements: Continuous enhancements in drilling and completion efficiency, leading to improved well performance and reduced costs [49][50][51] - Production Optimization: Focus on base production optimization, resulting in significant uplifts in production rates [56][57] Growth Potential - Unconventional Division: - Strong long-term growth and free funds flow potential - Flexibility across commodity types allows for capital allocation based on market signals [21][22][25] - Duvernay Position: - Largest landholder with approximately 500,000 acres and 700 identified locations - Expected to generate CAD 650 million-CAD 850 million in annual asset-level free cash flow once stabilized [26][30] - Montney Position: - Approximately one million acres with diverse development options, providing long-dated organic growth potential [31][32] Capital Efficiency and Execution - Development Workflow: A collaborative process that integrates geological evaluations, development planning, economic assessments, and execution to optimize returns [44] - Design Optimization: Successful implementation of strategies that improve capital efficiency and returns across various projects [45][46][47] Conclusion - Long-Term Vision: Whitecap Resources aims to leverage its strong asset base, disciplined capital allocation, and operational excellence to deliver sustainable shareholder returns and maintain a competitive edge in the energy sector [60][61]