![]() Our expectations for 2022 capital expenditures of $670 - $690 million are unchanged which is expected to result in the Company reaching our $1.8 billion net debt milestone prior to year end at current strip prices 8. We now expect 2022 production to average 144,000 boe/d (70% liquids) which is at the high end of our previous guidance. We are currently operating 9 drilling rigs and we expect operational momentum to continue into the fourth quarter with average production increasing by 13% to approximately 165,000 boe/d (65% liquids). These results continue to exceed our initial expectations, further validating the high quality of inventory acquired. Our four-well 12-33 pad has now achieved an average production rate of 1,900 boe/d (36% liquids) per well over the first 120 days on production, while the three-well 14-13 pad has now been on for 270 days, achieving an average per well production rate of 1,660 boe/d (29% liquids) 3. Since May 2021, we have brought on production 12 Montney wells with 4 more wells to be on stream by the end of the year, and we are expecting to drill another 23 (21.4 net) Montney wells at Kakwa in 2023. Integration of the XTO assets has been seamless given our existing expertise in the Montney. Our balance sheet is in excellent shape and provides significant financial flexibility to manage through commodity price cycles. Quarter end net debt of $2.2 billion represents a debt to EBITDA ratio of 0.8x and EBITDA to interest expense ratio 7 of 55.2x, well within our covenant limits of not greater than 4.0x and not less than 3.5x, respectively. Including $71 million of share repurchases under our normal course issuer bid ("NCIB"), total capital returned to shareholders was $138 million during the quarter. Dividends paid during the third quarter were $67 million or $0.11 per share, which were 22% and 137% higher on a per share basis than Q2/22 and Q3/21, respectively. ![]() Funds flow per share was the second highest quarterly result in Company history, and includes the impact of one-time transaction costs of $11 million relating to the XTO acquisition and higher operating costs primarily related to third quarter Alberta power prices averaging over 80% and over 120% higher than Q2/22 and Q3/21, respectively. Third quarter funds flow of $547 million or $0.88 per share was up 91% as compared to Q3/21. Outperformance on our base assets continued while execution of optimization opportunities contributed to production outperforming our internal expectations of 142,000 – 144,000 boe/d. Third quarter production of 145,798 boe/d included one month of the XTO acquired volumes and increased 30% per share compared to Q3/21. We highlight the following third quarter 2022 financial and operating results: Whitecap drilled 84 (68.4 net) wells during the quarter including 60 (46.7 net) wells in Saskatchewan, 13 (12.0 net) wells in Central Alberta, and 11 (9.7 net) wells in Northern Alberta & B.C. Total credit capacity is now $3.1 billion providing us with significant financial flexibility going forward. We successfully closed the acquisition of XTO Energy Canada ("XTO") on August 31 st for net cash consideration of $1.7 billion, after working capital adjustments, resulting in quarter end net debt of $2.2 billion and a debt to EBITDA ratio 7 of 0.8 times. ![]() The efficient execution of our capital program and strong operational results generated $339 million of free funds flow 6 in the third quarter, of which $138 million was returned to shareholders through our base dividend ( $67 million) and share repurchases ( $71 million) at an average cost of $8.45 per share. Production per share 1 increased 11% compared to the second quarter of this year and 30% compared to the same quarter in the prior year. Whitecap delivered another strong quarter with the successful execution of its $208 million capital program to achieve average production of 145,798 boe/d in the third quarter, well ahead of our internal expectations. ![]() Weighted average diluted shares outstanding Weighted average basic shares outstanding ![]() Petroleum and natural gas revenues ($/boe) 5 Financial ($000s except for share amountsĮxpenditures on property, plant and equipment 2 ![]()
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