Whitecap Resources Swings to Profit in 2021

Whitecap Resources (TSE: WCP), a publicly held oil company based in Calgary, Alberta, reported record production and funds flow in fiscal 2021.

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Petroleum and natural gas revenues came in at C$2.53 billion in 2021, up from C$901.56 million in 2020.

Whitecap posted a net income of C$1.78 billion (C$2.95 per diluted share) for 2021, compared to a net loss of C$1.84 billion (C$4.52 per diluted share) a year ago.

The board of directors has approved a 33% increase in its monthly dividend, from C$0.0225 to C$0.03 per share, which equals C$0.36 per common share annually.

Whitecap kept its guidance for 2022 average production of 130,000-132,000 boe/d (73% liquids) and capital expenditures of C$510 million to C$530 million.

CEO Commentary

Whitecap President & CEO Grant Fagerheim said, “2021 was a transformational year for Whitecap, with the successful execution and integration of approximately C$2.0 billion of strategic acquisitions during the cyclical lows of the recent commodity price cycle which have now significantly improved the profitability and sustainability of our business.”

Wall Street’s Take

On February 15, BMO Capital analyst Ray Kwan kept a Buy rating on WCP, with a price target of C$11. This implies 19.4% upside potential.

Overall, WCP stock scores a Strong Buy consensus rating based on seven Buys and one Hold. The average Whitecap Resources price target of C$11.91 implies 29.2% upside potential to current levels.

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