Whitecap Talks Q1 2019 Results

Message to Shareholders

Whitecap is pleased to report continued strong operational and financial performance in the first quarter of 2019. Average production of 70,666 boe/d was higher than our forecast of 69,000 boe/d which resulted in strong funds flow of $161.2 million ($0.39/share). As a result of the wide Canadian crude oil price differentials experienced in the fourth quarter of 2018, Whitecap elected for a defensive first quarter capital program. Capital spending in the first quarter was only $124.9 million, representing approximately 28% of our capital budget for 2019. This compares to $182.6 million invested in the first quarter of 2018, representing 41% of the capital budget for 2018. Whitecap’s commitment to capital discipline and strong operational performance resulted in a total payout ratio of 98% after capital spending and dividend payments during the quarter.

Whitecap continues to have a strong balance sheet with net debt at $1.3 billion on debt capacity of $1.7 billion. On strip pricing, we anticipate net debt to annualized fourth quarter funds flow to be 1.3x as we ramp up production to 77,000 – 79,000 boe/d. Our priority is to continue to strengthen our balance sheet to provide us with the flexibility to capitalize on future opportunities.

Financial Highlights:

• Funds flow for the quarter was $161.2 million ($0.39/share) compared to $138.8 million ($0.33/share) in Q4/18, an increase of 16% (18% per share). Operating netbacks (prior to hedges) increased 55% to $29.80/boe compared to $19.26/boe in Q4/18. The increase in funds flow and operating netbacks (prior to hedges) was primarily driven by the significant narrowing of Canadian crude oil price differentials and the resulting higher realized crude oil prices.

• Average production of 70,666 boe/d with capital expenditures of $124.9 million in Q1/19 compared to 73,120 boe/d with capital expenditures of $182.6 million in Q1/18. Average production decreased 3% and capital expenditures decreased by 32%.

• Capital discipline and strong operational execution resulted in a total payout ratio after capital spending and dividend payments of 98% compared to 130% in Q1/18.

• Further strengthened the balance sheet by reducing net debt by $117 million or 8% compared to Q1/18.

• Continued to layer on additional hedges mainly with costless collars for downside price protection and upside participation. Forty-two percent of the Company’s 2H19 crude oil production (net of royalties) and 12% of 2020 crude oil production (net of royalties) are hedged using a combination of swaps and costless collars. See Note 5 to the first quarter financial statements for further details.

Ops Update

We executed on a defensive capital program in the first quarter investing $124.9 million in the drilling of 56 (52.1 net) wells of which 6 (5.1 net) were waterflood injection wells, continuing our strategy of mitigating corporate production declines through the optimization of our enhanced oil recovery (“EOR”) projects. We achieved excellent capital efficiencies from our first quarter capital program and delivered average production higher than our forecast despite February being one of the coldest winters on record which negatively impacted our production in some of our operating areas.

Northwest Alberta and British Colombia

In the first quarter, we drilled 5 (5.0 net) wells in the Deep Basin, all of which are now on production. Early results are encouraging and are anticipated to meet or exceed expectations. We realized 10% cost savings on our Wapiti Cardium completions compared to our prior programs by utilizing new completion strategies and anticipate further savings with the larger second half 2019 program. We have 18 (18.0 net) wells planned for the remainder of the year in the Deep Basin.

First quarter capital activity in Boundary Lake was focused on waterflood optimization with our drilling program anticipated to start in the fourth quarter of 2019 with the drilling of 2 (2.0 net) wells.

West Central Alberta

In West Pembina we drilled 5 (4.5 net) horizontal wells, including 3 (2.6 net) injection wells to enhance production and recovery in our operated waterfloods. We have an additional 9 (8.3 net) horizontal production wells planned for the second half of 2019 in West Pembina.