Whitecap Resources Reports Record Q2 Earnings and Raises Production Guidance
Whitecap Resources (TSE:WCP) reported record second-quarter funds flow of C$1.4 billion and free funds flow of C$925 million, driven by higher crude oil prices, lower operating costs, and production exceeding internal expectations. Net income surged 186% year-over-year to C$890 million. The company raised its full-year production guidance from 380,000 BOE per day to 385,000 BOE per day while maintaining capital spending between C$2 billion and C$2.1 billion. Whitecap reduced net debt by C$900 million over six months, bringing it down to C$2.5 billion or 0.5 times cash flow. The Kaybob asset reached its productive capacity range, with management shifting focus toward sustaining output and generating free cash flow. Crude oil prices were bolstered in part by Middle East supply disruptions that increased demand for North American light crude. Operating costs dropped to C$11.88 per BOE from a year ago, leading the company to revise its full-year operating cost forecast downward. Liquids accounted for 93% of revenue despite making up only 61% of production due to strong oil prices and currency benefits.