The following is a summary of the Whitecap Resources Inc. (SPGYF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Whitecap Resources reported Q1 production averaging just under 170,000 Boe per day, a record since the company's inception.

• Capital spending was $384 million - lower than the estimated $425 million.

• The company generated a fund flow of $384 million or $0.64 per share in Q1, which funded the capital program.

• From a cash cost perspective, results were generally in line with expectations, with slight increases in operating costs and a royalty rate of 16.8%.

• The company's balance sheet is robust, with a debt-to-EBITDA ratio of 0.7x. The company anticipates a $200 million private placement note maturing in May.

• The company had a debt of $1.5 billion at the end of Q1, with a future forecast of reaching $1.2 billion by year-end.

Business Progress:

• In both East and West divisions, record production was achieved, leading to an increase in 2024 annual production guidance to 167,000 to 172,000 Boe/day from previous guidance.

• Whitecap successfully completed and commissioned their 20,000 Boe/day battery at Musreau in Northern Alberta.

• The company has been successful in early well results in four Glauconite wells and seven Duvernay wells since the XTO acquisition.

• Future development of a 5-well pad in Kaybob is planned.

• In the Western division, the company anticipates growth from the current production of 70,000 Boe per day to over 110,000 Boe per day.

• Small scale acquisitions are being considered, especially around existing assets, to improve profitability.

• The Eastern division is also performing well with plans to prioritize profitable assets for future expansion.

• Whitecap is waiting on investment tax credit market guidelines from the federal government to advance with carbon-capture projects.

More details: WHITECAP RESOURCES INC IR

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