Q: Your thoughts on 2nd quarter earnings for Whitecap Resources? Thanks
5i Research Answer:
WCP did say that production was to come in at the high end of its previous forecast, so the outlook right off the bat was good. Results beat estimates with EPS at 33c vs estimates 27c but did fall year over year on lower commodity prices. Revenue of $1.36B beat estimates of $1.22B. Production rose 65%. Analysts noted metrics beat 'across the board' and were very impressed with the quick results from the VRN deal (closed in May). We have seen two target price hikes by brokers already on the results. Things are looking fine here and while debt has gone up the company should be able to reduce this and has not ruled out more share buybacks.