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Whitecap Cuts 2019 Capex by $50 Million; Production Guidance Unchanged

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   |    Tuesday,August 27,2019

Whitecap Resources Inc. announced that it is reducing its 2019 second half capital expenditures program by 17% to $250 million from $300 million. Full year 2019 capital expenditure program is now anticipated to be $400 million which is $50 million lower than our previous guidance of $450 million.

This comes after the company announced it was prepping for a 'very active 2H19' in its Q2 report.

It detailed its drilling plans YOY (2018 v. 2019) in its latest presentation:

Production Estimates Unchanged

Our 2019 average production guidance of 70,000 to 72,000 boe/d remains unchanged despite the reduction in capital expenditures. We now anticipate growing production 6% to 74,000 to 75,000 boe/d in the fourth quarter of 2019 from the second quarter average production of 70,611 boe/d. On strip pricing, anticipated 2019 free funds flow is approximately $135 million with a total payout ratio of 80% compared to $95 million and a total payout ratio of 86% prior to the reduced capital program.

The company noted that is has the operational and financial flexibility to accelerate our capital program in 2020 to respond to more stable market conditions and will ensure capital expenditures and dividend payments are well funded by funds flow and our balance sheet strength is maintained.



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