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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