CORPORATE PRESENTATION / JUNE 2022 INCREASING TOTAL SHAREHOLDER RETURNS ALL-CASH ACQUISITION OF XTO ENERGY CANADA
Whitecap Profile TSX: WCP Shares Outstanding (MM) Basic 617.4 Fully diluted 626.3 Enterprise Value (B) 8.2 Increasing 2022 Guidance WCP Pro Forma Production (boe/d) 131,000 139,000 Capital (MM) 570 620 Previous New Dividend…
Premium Montney & Duvernay Assets XTO Energy Adds 672,000 (639,000 net) high quality Montney & Duvernay acres Top Tier Montney & Adds over 2,000 (1,910 net) drilling locations Duvernay Inventory Premier liquids region of the Montney…
Highly Accretive across all Key Metrics 2023 WCP 2023 Pro Forma % Change Production per share 215.6 273.1 27% Funds Flow per Share1 2.66 3.37 27% Free Funds Flow per Share1 1.48 1.77 20% Current TPP Reserves per share 1.28…
Top Tier Montney Assets Asset Highlights: Production of 11,000 boe/d 1,772 (1,693 net) drilling locations Drill 20-25 wells per year Consolidates working interest at Kakwa Infrastructure: Gas Processing 3rd party plants…
Top Tier Duvernay Assets Asset Highlights: Production of 21,000 boe/d 252 (217 net) drilling locations Drill 4-8 wells per year Recent industry results yielding strong economics Lower well costs Modern completion design and frac…
Best-in-Class Montney Type Curves Refined Completions Technique Improving Recent Kakwa Results Reduced frac tonnage, optimized well spacing Total inventory of 1,693 net locations, 372 of which are Tier 1 Top Decile Within…
Best-in-Class Duvernay Type Curves Modern Completions & Frac Design Improving Capital Efficiencies Total inventory of 217 net locations, 112 of which are Tier 1 Top Decile Within Portfolio Tier 1 Well Economics Duvernay DCE&T…
XTO Canada Significant Upside Potential 20 years of Tier 1 drilling inventory at 50,000 60,000 boe/d Over 45 years remaining after Tier 1 exhausted Only 44% Tier 1 and Significant Unbooked Value 11% of Total Locations Booked NPV…
Enhancing Long-Term Sustainability 2022 WCP 2022 Pro Forma % Change Production (boe/d) 131,000 139,000 6% per million shares 209 221 6% (MM) Funds Flow 2,240 2,348 5% per diluted share 3.56 3.74 5% Capital Expenditures 570 620…
Delivering Free Funds Flow 2023 Pro Forma Outlook Base production of 168,000 174,000 boe/d Planned capital expenditures of 900 million to 1.1 billion Generating Significant Free Funds Flow 3,000 2,500 Fully funded income growth…
Balance Sheet Strength Top Tier balance sheet with low D/EBITDA ratios and significant liquidity to manage commodity price volatility Well below credit facility covenants of D/EBITDA < 4.0x and EBITDA/Interest 3.5x Stress tested…
Current Dividend Sustainability Objective: Provide a sustainable and growing base dividend Dividend and maintenance capital is fully funded at 50/bbl WTI and C4/GJ AECO Sustainability US50 WTI WCP Pro Forma Current Production…
Base Dividend Targets Return of Capital to shareholders focused on sustainable increases to the base dividend Target dividend level of 0.73 per share on achieving debt milestone from 0.36 per share previously Dividend Increases…
Return of Capital Framework 1 Commitment to Balance Sheet Strength Share 75% Buybacks of Free Funds Flow Maintain D/EBITDA < 1x Debt milestones of 1.8B Q4/22 and 1.3B 1H/23 Dividends 2 2022 2023e 2024e Growing Base…
Risk Management Objectives: Fully fund capital program and annual dividend payments Downside price protection with upside participation Outcome: 2023 maintenance capital and current dividend fully funded…
Core Areas of Operations Pro Forma 7,252 (6,240 net) drilling locations XTO Acquisition enhances long-term XTO Canada sustainability and profitability Increases production 24% but total reserves potential by 60% Total…
Balanced 2022 Capital Allocation millions % Business Unit Primary Targets Northern AB & B.C. Cardium, Charlie Lake, Montney 179 29 Central AB Cardium, Ellerslie, Glauconite 119 19 Western SK Atlas, Shaunavon, Viking 112 18 Eastern SK…
Our Principles Balancing return of capital with Strong credit metrics Strong Return on and ample liquidity Capital Investing Debt/EBITDA 1 1.5x Leaders in ESG performance Capital Discipline Sequesters 2MT CO2 annually drives…
Leaders in Sustainability (ESG Targets) Environment Social Governance 30% Community Investment Focused 30% Female Reduction in on Supporting Representation on Corporate Scope 1 Childrens Health, Board of Directors by GHG…
CCUS Capabilities Leader in CO2 Sequestration. Operator of the Worlds largest anthropogenic CO2 storage project Technical Expertise. Measurement, Monitoring and Verification system to safely store CO2 in the reservoir Weyburn…
Advancing New Energy Opportunities Federal Investment Tax Credit 50% refundable credit on capture equipment 37.5% refundable credit on transportation and sequestration equipment EOR not eligible Saskatchewan Carbon Hub Alberta…
Whitecap Competitive Advantages Top Tier Balance Sheet: Low leverage with ample liquidity. Secured covenant-based credit facility not subject to annual redeterminations. Significant free funds flow profile: Premium assets…
TSX:WCP www.wcap.ca InvestorRelationswcap.ca June 28, 2022 24
How CO2 Capture and Sequestration Works 1. Collecting Waste Emissions 1 CO2 captured We purchase CO2 from coal plants in Saskatchewan and North Dakota. Without the Weyburn Unit, the majority of CO2 would oil to market 4 otherwise…
How CO2 Capture and Sequestration Works 3. Sustainable Oil Production 1 CO2 captured The CO2 acts likes a solvent to flush otherwise unrecoverable oil from pores in the rock. This results in incremental oil production oil to market…
Slide Notes Slide 2 1. Current shares outstanding as at May 31, 2022, and 8.8 million share awards outstanding. 2. Enterprise value is a supplementary financial measure. See Specified Financial Measures in the Advisories. 3. Enterprise…
Slide Notes Slide 9 1. See Oil and Gas Advisory in the Advisories for additional information on drilling locations, internally identified reserves potential (TPP plus unbooked) and NPV Slide 10 1. See Oil and Gas Advisory in the…
Slide Notes Slide 13 1. See Oil and Gas Advisory in the Advisories for additional information on production. 2. Funds flow is a capital management measure. See Specified Financial Measures in the Advisories. 3. Maintenance capital is a…
Slide Notes (contd) Slide 16 1. Hedge positions current to June 27, 2022. Full hedge positions by product are: Volume Bought Put Price Sold Call Price Swap Price WTI Crude Oil Term (bbls/d) (C/bbl) (i) (C/bbl) (i) (C/bbl) (i) Collar…
Slide Notes (contd) Slide 17 1. See Oil and Gas Advisory in the Advisories for additional information on drilling locations, production and internally estimated reserves potential. Slide 19 1. The debt used in the Debt to EBITDA…
Advisories (contd) The forward-looking information is based on certain key expectations and assumptions made by our management, including: that the parties will be able to satisfy all conditions precedent to closing the Acquisition,…
Advisories (contd) Production & Product Type Information References to petroleum, crude oil , natural gas liquids (NGLs), natural gas and average daily production in this presentation refer to the light and medium crude oil, tight crude…
Research Coverage ATB Capital Markets Peters & Co. BMO Capital Markets Raymond James Canaccord Genuity RBC Capital Markets CIBC World Markets Scotiabank Global Cormark Securities STIFEL FirstEnergy Desjardins Capital Markets TD…
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