WHITECAP RESOURCES INC. DELIVERS STRONG THIRD QUARTER PERFORMANCE, RAISES 2025 PRODUCTION OUTLOOK AND SETS 2026 BUDGET

Executive Summary

• Whitecap Resources reported Q3 2025 operating and unaudited financial results, showing a 374 k boe/d average production – well above internal expectations.
• Funds flow was $897 M ($0.73/share) with free funds flow of $350 M; net debt stood at $3.32 B (1.0× annualized funds flow).
• The company raised its 2025 full‑year production guidance to 305 k boe/d and confirmed a 2026 capital budget of $2.0‑$2.1 B targeting 370‑375 k boe/d average production.

Key Details

• Production (Q3 2025):
• Total 374,623 boe/d (crude oil 179,918 bbl/d, NGLs 47,501 bbl/d, natural gas 883,224 Mcf/d).

• Oil‑condensate 227,419 bbl/d; liquids weighting ~61%.

• Financial Highlights (Three months ended Sep 30 2025):

• Petroleum & natural gas revenues: $1.66 B (up from $891 M YoY).
• Net income: $204 M (down from $274 M YoY).
• Funds flow: $896.6 M ($0.73/share basic).
• Free funds flow: $350.3 M.
• Capital expenditures (PP&E): $546.3 M.

• Net debt: $3,317.7 M (vs. $1,361.8 M YoY).

• Operating Metrics:

• Operating netback: $28.02/boe (down from $32.59/boe YoY).

• Operating costs: $12.49/boe – an 8% improvement versus prior quarter.

• Guidance Updates:

• 2025 average production guidance increased to 305 k boe/d (previous range 295‑300 k boe/d).
• 2025 capital spending unchanged at $2.0 B.

• 2026 capital budget: $2.0‑$2.1 B; target average production 370‑375 k boe/d (60% liquids); Q4 2026 >380 k boe/d.

• Synergy Realization:

• Post‑Veren combination synergies captured ahead of schedule; $300 M annual synergy benefit embedded in 2026 forecast (40% higher than original estimate).

• Unconventional Asset Highlights:

• Duvernay: 20% YoY improvement in metres/day drilling; debottlenecked Kaybob gas plant capacity to ~42,000 boe/d (+16%).

• Montney: New plug‑and‑perforation pilot at Karr; cost reduction of 20% on recent Musreau pad.

• Conventional Asset Highlights:

• East Saskatchewan Frobisher wells delivered IP90 rates 40% above forecast; record‑length OHML well (6,400 m lateral, 34,600 m total).

• Capital Allocation Plans for 2026:

• Unconventional: ~75% of $2.0‑$2.1 B budget; major programs include Duvernay (45 wells), Montney (53 wells), Lator development ($180 M total, $60 M infrastructure).

• Conventional: 156 planned wells (Cardium, Charlie Lake, Glauconite, Atlas, Success, Viking, Bakken, Frobisher).

• Shareholder Returns:

• Base dividend maintained at $0.73/share; share repurchases emphasized as additional return of capital.

• Conference Call: Thursday, Oct 23 2025 at 9:00 am MT (webcast available on wcap.ca).

Notable Quotes

“Our teams have focused on seamless integration, consistent execution and the adoption of best practices across our expanded asset base… driving meaningful value for shareholders.” – Grant Fagerheim, President & CEO.

Materiality Assessment: Material Positive – The release contains substantive operating and financial results, revised production guidance, and a multi‑billion‑dollar capital plan that are likely to influence investor decisions.