Whitecap Resources (WCP) AI Stock Analysis

• Market Cap: $12.39B
• Dividend Yield: 7.3%
• Average Volume (3M): 6.02M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.23
• Revenue Growth: 12.28%
• EPS Growth: 16.78%
• Country: CA
• Employees: 567
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.33
• Shares Outstanding: 1,231,700,000
• 10 Day Avg. Volume: 4,561,185
• 30 Day Avg. Volume: 6,020,888
• PEG Ratio: -1.10
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 1.54
• P/FCF Ratio: 8.71
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.76
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 4.72
• 1Y Price Target: $12.75
• Price Target Upside: 27.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 79 Outperform
• Price Target: C$11.50 ▲(15.00% Upside)

Whitecap Resources demonstrates strong financial recovery and attractive valuation, supported by positive technical indicators and strategic corporate actions. However, risks from declining profit margins and external market volatility remain.

Positive Factors

Financial Performance

Reported Q4 cash flow came out higher than consensus expectations.

Operational Capacity

The merger with VRN is on track to close, which could enhance the company's operational capacity.

Strategic Growth

Whitecap Resources completed its merger with VRN, indicating strategic growth and expansion.

Negative Factors

Capital Expenditures

Focus is shifting to updated 2025 guidance, suggesting potential future growth and strategic planning.

Capital Priorities

Capital priorities are focused on balance sheet strength, capital expenditures, and growth.

Whitecap Resources Business Overview & Revenue Model

Company Description

Whitecap Resources Inc. is a Canadian-based oil and natural gas company engaged in the exploration, development, and production of crude oil and natural gas. The company primarily operates in Alberta, Saskatchewan, and British Columbia, focusing on light oil and natural gas production. Whitecap aims to deliver sustainable growth and value to its shareholders through a disciplined operational approach and strategic acquisitions in the energy sector.

How the Company Makes Money

Whitecap Resources generates revenue primarily through the sale of crude oil and natural gas. The company produces and sells various grades of oil, including light oil, as well as natural gas and natural gas liquids. Key revenue streams include the direct sale of these hydrocarbons to processing and refining companies, often governed by long-term contracts or spot market sales depending on market conditions. Additionally, Whitecap benefits from strategic acquisitions that enhance its resource base and operational efficiency. The company's financial performance is significantly influenced by fluctuating oil and gas prices, production levels, and its ability to manage operational costs effectively. Furthermore, partnerships with other energy companies for joint ventures and infrastructure development can also contribute to its earnings.

Whitecap Resources Financial Statement Overview

Summary

Whitecap Resources demonstrates strong financial recovery with robust revenue growth and improved leverage ratios. However, declining net profit margins and return on equity, along with the absence of EBIT profitability, present potential risks.

Income Statement

Whitecap Resources has shown a strong recovery in its income statement metrics. The company achieved a significant gross profit margin improvement from 48.5% in 2023 to 60% in 2024. However, the net profit margin decreased slightly to 20.6% in 2024 from 27.5% in 2023, indicating increased costs or other financial pressures. Despite this, the revenue growth rate from 2023 to 2024 was impressive at 21.9%, showcasing strong top-line growth. The lack of EBIT margin is a weak point, but EBITDA margin remained robust at 54.4% in 2024.

Balance Sheet

The balance sheet of Whitecap Resources reflects a solid equity base with an equity ratio of 57.8% in 2024, indicating financial stability. The debt-to-equity ratio improved to 0.20, showing a reduction in leverage compared to previous years. However, the return on equity decreased from 16.2% in 2023 to 14.1% in 2024, suggesting a decline in efficiency or profitability relative to equity.

Cash Flow

The cash flow statement indicates healthy cash generation, with a free cash flow of $696.8 million in 2024, a growth of 12.8% from the previous year. The operating cash flow to net income ratio is strong at 2.26, reflecting efficient cash conversion. However, the free cash flow to net income ratio slightly decreased to 0.86, indicating potential challenges in maintaining cash flow relative to net earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.42B	3.94B	3.23B	4.78B	2.69B	931.90M
Gross Profit	2.64B	2.36B	1.40B	3.11B	1.73B	453.24M
EBITDA	2.59B	2.18B	2.16B	3.13B	2.99B	-2.00B
Net Income	981.20M	812.30M	889.00M	1.68B	1.78B	-1.84B
Balance Sheet
Total Assets	19.11B	9.95B	9.60B	9.53B	6.88B	3.38B
Cash, Cash Equivalents and Short-Term Investments	0.00	362.30M	32.90M	-29.00M	-29.67M	-71.59M
Total Debt	3.54B	1.14B	1.38B	1.87B	1.09B	1.17B
Total Liabilities	8.00B	4.20B	4.13B	4.48B	3.14B	2.38B
Stockholders Equity	11.11B	5.75B	5.48B	5.05B	3.74B	996.95M
Cash Flow
Free Cash Flow	593.40M	696.80M	617.60M	1.49B	564.70M	248.91M
Operating Cash Flow	1.94B	1.83B	1.74B	2.18B	1.12B	450.18M
Investing Cash Flow	-267.90M	-563.80M	-765.60M	-2.50B	-387.38M	-261.03M
Financing Cash Flow	-1.67B	-907.40M	-976.90M	313.40M	-736.53M	-189.15M

Whitecap Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WCP, the sentiment is Neutral. The current price of 10 is below the 20-day moving average (MA) of 10.26, above the 50-day MA of 9.65, and above the 200-day MA of 9.17, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 37.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:WCP.

Whitecap Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCP	79 Outperform	$12.39B	6.87	11.56%	7.30%	12.28%	16.78%
MEG	79 Outperform	$6.82B	12.66	11.70%	1.49%	-22.92%	0.54%
SCR	77 Outperform	C$7.89B	11.08	10.85%	2.77%	20.21%	7.08%
NVA	74 Outperform	$2.76B	8.25	14.64%	―	-9.78%	5.12%
PEY	70 Outperform	C$3.84B	11.45	12.21%	6.95%	7.02%	7.16%
PSK	65 Neutral	$5.56B	25.39	8.08%	4.29%	-4.07%	-3.22%
Sector *	57 Neutral	HK$79.13B	2.20	1.58%	5.49%	0.84%	-49.13%

Whitecap Resources Corporate Events

Whitecap Resources Declares August 2025 Dividend

Whitecap Resources Inc. has announced a monthly dividend of Cdn. $0.0608 per share for August 2025, payable on September 15, 2025. This decision underscores Whitecap’s commitment to delivering shareholder value through consistent dividend payouts, reflecting its strategic focus on financial stability and growth within the oil and natural gas sector.

The most recent analyst rating on (TSE:WCP) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Whitecap Resources stock, see the TSE:WCP Stock Forecast page.

Whitecap Resources Reports Strong Q2 2025 Results with Increased Production and Revenue

Whitecap Resources Inc. reported strong financial and operational results for the second quarter of 2025, with significant increases in petroleum and natural gas revenues and net income compared to the previous year. The company’s average daily production rose substantially, driven by increased crude oil, NGLs, and natural gas outputs. This robust performance underscores Whitecap’s solid market positioning and operational efficiency, benefiting stakeholders through increased dividends and a strong financial outlook.

The most recent analyst rating on (TSE:WCP) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Whitecap Resources stock, see the TSE:WCP Stock Forecast page.

Whitecap Resources Confirms July Dividend and Announces Q2 Results Call

Whitecap Resources Inc. has confirmed a monthly dividend of Cdn. $0.0608 per share for July, payable on August 15, 2025, to shareholders of record on July 31, 2025. The company also announced its intention to release its second quarter 2025 results on July 23, 2025, followed by a conference call and webcast on July 24, 2025. These announcements highlight Whitecap’s commitment to shareholder returns and transparency, potentially strengthening its market position and investor relations.

The most recent analyst rating on (TSE:WCP) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Whitecap Resources stock, see the TSE:WCP Stock Forecast page.

Whitecap Resources Secures $300 Million in Senior Notes Offering

Whitecap Resources Inc. has successfully closed a $300 million offering of senior unsecured notes due in 2028, with a fixed interest rate of 3.761% per annum. The proceeds from this offering will be used to repay existing debt and for general corporate purposes, potentially strengthening the company’s financial position and operational flexibility.

The most recent analyst rating on (TSE:WCP) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Whitecap Resources stock, see the TSE:WCP Stock Forecast page.

Whitecap Resources Announces $300 Million Senior Notes Offering

Whitecap Resources Inc. has announced a $300 million offering of senior unsecured notes, with a 3.761% interest rate due in 2028. The proceeds will be used to repay existing debt and for general corporate purposes. The company’s credit rating was recently upgraded to BBB by Morningstar DBRS, reflecting an improved credit profile. This offering is expected to enhance Whitecap’s financial flexibility and strengthen its market position.

The most recent analyst rating on (TSE:WCP) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Whitecap Resources stock, see the TSE:WCP Stock Forecast page.

Whitecap Resources Announces June 2025 Dividend

Whitecap Resources Inc. has announced a monthly cash dividend of Cdn. $0.0608 per common share for June 2025, payable on July 15, 2025, to shareholders of record on June 30, 2025. This announcement reflects Whitecap’s commitment to providing sustainable dividends while maintaining its growth strategy, potentially reinforcing its market position and offering value to its shareholders.

The most recent analyst rating on (TSE:WCP) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Whitecap Resources stock, see the TSE:WCP Stock Forecast page.

Whitecap Resources to End U.S. SEC Reporting Obligations

Whitecap Resources Inc. announced its intention to terminate its U.S. reporting obligations with the SEC for its common shares, effective 90 days from filing, subject to SEC approval. The company’s shares will remain listed on the Toronto Stock Exchange, and it will continue to fulfill its Canadian disclosure obligations, ensuring transparency for its stakeholders.

The most recent analyst rating on (TSE:WCP) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Whitecap Resources stock, see the TSE:WCP Stock Forecast page.

Whitecap Resources Secures TSX Approval for Share Buyback and Confirms May Dividend

Whitecap Resources Inc. has received approval from the Toronto Stock Exchange to renew its normal course issuer bid, allowing the company to repurchase up to 10% of its public float over the next year. This move is intended to enhance shareholder value by repurchasing shares when their market price does not reflect their underlying value. Additionally, Whitecap has confirmed a monthly dividend of Cdn. $0.0608 per share for May, reinforcing its commitment to providing sustainable dividends to shareholders.

The most recent analyst rating on (TSE:WCP) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Whitecap Resources stock, see the TSE:WCP Stock Forecast page.