CALGARY , May 22, 2013 /CNW/ – Whitecap Resources Inc. (“Whitecap” or the “Company”) (WCP.TO) is pleased to announce successful completion of the acquisition of an existing Viking light oil waterflood asset in the Dodsland area of west central Saskatchewan as previously detailed in our April 29, 2013 press release. The acquisition adds 900 boe/d (95 percent light oil) of high netback, operated production with a low base decline of 20 percent. Total consideration for the acquisition was $110 million subject to post-closing adjustments. The acquisition represents the continuation of Whitecap’s objective to strengthen the sustainability of our dividend-growth strategy through the acquisition of high netback assets that can provide consistent growth and substantial free cash flow.
Whitecap Resources Inc. is a dividend paying, oil-weighted company focused on providing sustainable monthly dividends to its shareholders and per share growth through a combination of accretive oil-based acquisitions and organic growth on existing and acquired assets. For further information about Whitecap please visit our website at www.wcap.ca.
This document contains the terms “cash flow”, “free cash flow” and “netbacks” which do not have a standardized meaning prescribed by Canadian GAAP and therefore may not be comparable with the calculation of similar measures by other companies. Whitecap uses cash flow, free cash flow and netbacks to analyze financial and operating performance. Whitecap feels these benchmarks are key measures of profitability and overall sustainability for the Company. Each of these terms is commonly used in the oil and gas industry. Cash flow, free cash flow and netbacks are not intended to represent operating profits nor should they be viewed as an alternative to cash flow provided by operating activities, net earnings or other measures of financial performance calculated in accordance with GAAP. Cash flows are calculated as cash flows from operating activities less changes in non-cash working capital. Free cash flows are calculated as cash flow minus development capital expenditures. Netbacks are determined by deducting royalties, production expenses and transportation and selling expenses from oil and gas revenue.
Note: “Boe” means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 bbl of oil. Boe’s may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.
SOURCE: Whitecap Resources Inc.
Grant Fagerheim, President & CEO
Thanh Kang, VP Finance & CFO
Whitecap Resources Inc.
500, 222 – 3 Avenue SW
Calgary, AB T2P 0B4
Main Phone: (403) 266-0767
Fax: (403) 266-6975