![]() Discretionary funds flow will be used for further returns to shareholders, debt repayment or opportunistic acquisitions within our core areas. Under these scenarios, the increased dividend represents only 11% - 13% of funds flow and when combined with our strong balance sheet and high netback/low decline asset base, our sustainability remains firmly intact. In 2022, with preliminary forecasted corporate production of 120,000 boe/d and our expectations of benchmark commodity prices between US$55 - $65/bbl WTI and C$2.50/GJ AECO, Whitecap anticipates annual funds flow of $950 million - $1.1 billion and discretionary funds flow (after capital and dividends) of $250 - $400 million. Including the dividend increase, Whitecap's 2021 dividend will equate to only 12% of funds flow based on current strip pricing. The monthly dividend will be increased from $0.01508 to $0.01625 per common share which equates to $0.195 per common share annually and will be effective beginning with the June dividend, payable in July 2021. Return of capital to shareholders is a priority for Whitecap, and our board of directors has approved an 8% increase to our monthly dividend. ![]() We are forecasting discretionary funds flow after capital and dividends in excess of $200 million in the first half of 2021 which will be used to further strengthen our balance sheet. ![]() With the exceptional Montney wells results, outperformance from our existing assets, along with commodity prices higher than our US$60/bbl WTI forecast, we are confident in our ability to generate significant free funds flow in 2021 and beyond. Our 696 (437.4 net) drilling locations include over ten years of tier 1 inventory. Whitecap now owns 168 (118 net) sections of Alberta Montney rights in some of the most prolific Montney acreage in the basin.Whitecap's tier 1 Montney inventory at Karr and Kakwa has very robust economics consisting of high productivity wells (IP365 1,100 – 1,400 boe/d) which drive quick project payouts (less than 1 year) and long term net asset value growth (NPV10 per well greater than $12 million) at US$55/bbl WTI and C$2.50/GJ AECO.These wells are above our budget expectations, partially due to an accelerated completion clean-up and associated decline in water cuts. Our non-operated well (0.5 net) has been on production since late March and is currently producing at 1,000 boe/d (75% oil and NGLs). Our operated 13-1 (0.7 net) well has been on production since early April and is currently producing at a rate of 2,300 boe/d (70% oil and NGLs). On our previously owned Karr, Alberta lands, we are seeing the benefits of our optimized completions re-design and fracture stimulations.We anticipate 3 (2.4 net) wells from the six well program to be completed and on production by year end 2021 with the remaining 3 (2.0 net) wells coming on production in the first quarter of 2022. This program will utilize a single drilling rig from two separate pads. We will also start a 6 (4.4 net) well drilling program in the third quarter. This four well pad will be completed in the third quarter and is expected to be on production in the fourth quarter. On the Kakwa, Alberta lands acquired, we currently have two rigs drilling the final two wells of a four well pad (2.6 net).Whitecap acquired all of the issued and outstanding common shares of Kicking Horse for consideration consisting of 34.5 million Whitecap common shares, $56 million in cash and also assumed Kicking Horse's net debt (the "Acquisition"). ("Whitecap" or the "Company") (TSX: WCP) is pleased to announce that it has successfully closed the previously announced acquisition of Kicking Horse Oil & Gas Ltd. CALGARY, AB, /CNW/ - Whitecap Resources Inc.
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