CORPORATE PRESENTATION / OCTOBER 2023 TOP TIER ASSETS SUPPORTING INCREASING SHAREHOLDER RETURNS
Whitecap Profile TSX: WCP Shares Outstanding (MM) Basic 606.2 Fully diluted 613.4 Enterprise Value (B) 8.0 Guidance 2023 2024 Production (boe/d) 157,000 162,000 168,000 Capital (MM) 950 1,000 - 1,200 Oct 1, 2023 Increase…
Third Quarter Highlights Results: Production of 157,026 boe/d and funds flow of 0.76 per share top quarterly results of 2023 Free Funds Flow: 184 million of free funds flow (0.30 per share) after 282 million capital investments…
2024 Budget OPERATIONAL HIGHLIGHTS Capital Spending: 1.0 - 1.2 billion Average Production: 162,000 168,000 boe/d (63% liquids) Production per Share Growth: 5% Wells Spud: 258 (222.7 net) FINANCIAL HIGHLIGHTS 1.8 billion of…
2024 Budget Highlights by Division CAPITAL BUDGET West Division East Division Budget Allocation: 600 million Budget Allocation: 500 million 80% to Montney & Duvernay Cent AB = 30% East SK = 15% Incl. 130 million infrastructure…
Delivering Free Funds Flow & Growth 2024 Budget (mid-point) million Funds Flow Sensitivity 130 140 Production of 165,000 boe/d (5% PPS) 120 100 Capital expenditures of 1.0-1.2 billion 80 60 45 40 25 20 MM Funds Flow Free…
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 Current credit…
Risk Management Objectives: Fully fund capital program and annual dividend payments Downside price protection with upside participation Outcome: Maintenance capital and current dividend fully funded…
Return of Capital Framework 75% Free Funds Flow Returned to Shareholders Return of Capital Sensitivity MM Base Dividend Share Repurchases Balance Sheet 1 Base Dividend 1,400 0.73/share annually (435 million) 1,200 Future growth…
Corporate Growth 2023-2027 Corporate Production Growth Target organic growth to 200,000 boe/d by 200,000 boe/d the end of 2027 at 5%/year growth rate Guidance Midpoint = 165,000 boe/d 3%-8% Annual Growth 5% Annual Growth…
Multi-Decade Inventory Corporate Drilling Inventory Years 65 years WTI = US75/bbl 40 AECO = C3.50/GJ 46 years Inventory Supports Multi-Decade 30 30 years Growth Potential 20 25 years Quick capital payouts and strong profit to…
Core Areas of Operations WEST DIVISION 6,584 (5,675 net) drilling locations EAST DIVISION Over 25 years of sustainable growth and profitability Montney growth supported by low decline light oil assets Division Total…
West Division (Northern Alberta) Highly economic wells with commodity optionality to pivot during cycles Driver of corporate growth with 2,246 (2,081 net) Montney locations and 218 (184 net) Duvernay locations Utilization of…
East Division (Central Alberta) Recent Glauconite and Cardium results outperforming Utilize owned infrastructure to maximize Free Funds Flow Waterflood efforts proving successful Southern Alberta Glauconite West Pembina…
East Division (Saskatchewan) Viking and Frobisher assets characterized by High Returns and Short Payouts Currently utilizing multi-leg laterals in SE Sask with further potential across assets Significant free funds flow…
Significant Top Quartile Inventory WCP Montney A WCP Peters & Co. Cdn Plays Peters & Co. U.S. Plays Clearwater Marten Hills WCP Frobisher Clearwater Nipisi WCP Viking ERH Montney Karr Over 50% of WCP inventory ranks among WCP…
Long Track Record of Returning Capital to Shareholders 26% 0.0608 523 million 1.7 billion Total dividends paid Oct. 2023 dividend Current Monthly Share repurchases completed (4.60/share) increase dividend (as at Sept. 30, 2023) (at…
Valuation Gap EV/DACF Cdn Peers U.S. Peers Avg. Cdn Avg. U.S. 6.0 5.0 4.0 3.0 2.0 1.0 0.0 WCP Discounted Valuation to peers despite: Depth of Montney and Duvernay Inventory & History of Successful Execution Balance Sheet…
Whitecaps Competitive Advantages 6,600 drilling locations support 3%-8% corporate growth for over 25 years Top Tier Inventory Large resource with strong economics across commodity cycles drives increased profitability and enhanced…
Leaders in Sustainability (ESG Targets) Environment Social Governance Community 15% Investment Focused Reduction in on Supporting 30% Corporate Scope 1 & 2 Childrens Health, Women on Board GHG Emissions Education & Intensity by…
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 Four Carbon Sequestration Hubs Total Saskatchewan…
TSX:WCP www.wcap.ca InvestorRelationswcap.ca October 25, 2023 23
Crude Oil Fundamentals Canadian supply growth expected to be minimal over the next few years TMX completion is expected to strengthen differentials on all grades Volumes/Capacity (MB/d) 6,000 Trans Mountain Expansion (TMX) Existing…
Natural Gas Fundamentals Supply growth expected to coincide with capacity increases over next several years LNG Canada expected to strengthen AECO differentials to NYMEX Volumes/Capacity (Bcf/d) 24.0 LNG Canada (Phase 1) Western…
Condensate Fundamentals Supply growth required to match growth in demand (oil sands) Condensate sold at a premium to light oil Condensate (MB/d) 900 Imports Condensate Production Total Demand 800 700 600 500 400 300…
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 September 30, 2023, and 7.2 million share awards outstanding. 2. Enterprise value is a supplementary financial measure. See Specified Financial Measures in the Advisories. 3.…
Slide Notes (contd) Slide 7 1. Net debt is a capital management measure. See Specified Financial Measures in the Advisories. 2. The debt used in the Debt to EBITDA calculation includes bank indebtedness, letters of credit, and dividends…
Slide Notes (contd) Slide 9 1. Free funds flow is a non-GAAP financial measure. See Specified Financial Measures in the Advisories. 2. Share repurchases are under the normal course issuer bid which allows for up to 59.7 million shares to…
Slide Notes (contd) Slide 19 1. See Oil and Gas Advisory in the Advisories for additional information on drilling locations. 2. Free funds flow is a non-GAAP financial measure. See Specified Financial Measures in the Advisories. 3. The…
Advisories (contd) Specified Financial Measures (contd) Funds flow, funds flow basic (/share) and funds flow diluted (/share) are capital management measures and are key measures of operating performance as they demonstrate Whitecaps…
Research Coverage ATB Capital Markets National Bank Financial BMO Capital Markets Peters & Co. Canaccord Genuity Raymond James CIBC World Markets RBC Capital Markets Cormark Securities Scotiabank Global Desjardins Capital Markets…
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