Q: Your views on Whitecap Resources recent earnings of October 25.
Thank you.
Thank you.
5i Research Answer:
EPS of $0.25 missed expectations of $0.29 and revenues of $955.9M beat expectations of $779.295M. The company reduced its net debt down to $1.3B in the quarter, and plans to return 75% of its free funds flow to shareholders in the way of both dividends and share buybacks. WCP expects to be at the low end of the production guidance and the high end of capital spending for 2024. Its valuation remains quite cheap at 6.6X forward earnings. Its net debt reduction is positive and we like its intentions to return 75% of free funds flow to shareholders. Overall, we feel this was an OK quarter, but a lot will depend on the underlying energy market.