Whitecap Resources (TSE:WCP) announced its plans for 2026 production and capital allocation at the ATB Cormark Capital Markets event, projecting a production target of 384,000 to 386,000 barrels of oil equivalent per day, a 3% increase over previous guidance. The company expects to generate C$4.3 billion in cash flow with a planned capital program of C$2.1 billion, resulting in an estimated free cash flow of C$2.2 billion.
Operating mainly in Alberta and Saskatchewan, Whitecap is the fifth-largest oil and condensate producer in Canada, producing approximately 145,000 BOE per day from its conventional division. The company boasts around 10,500 drilling locations, with plans to drill approximately 255 wells in 2026. Following its acquisition of Veren in May 2025, Whitecap has improved capital efficiency, lowering costs to about C$18,500 per flowing barrel while reducing operating costs to approximately C$12 per BOE.
Whitecap aims to decrease its net debt from C$3.4 billion at the end of 2025 to C$2 billion by the end of 2026, targeting a leverage ratio of 0.5 times through cash flow, with long-term goals set at one times. The company plans to maintain its annual dividend of C$0.73 per share while preserving C$1.3 billion in free cash flow beyond dividends at lower commodity prices.
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