Whitecap Resources
Whitecap Resources is an oil-weighted growth company known for its CO2 sequestration efforts and monthly cash dividends to shareholders. It operates significant projects in Saskatchewan and Alberta, focusing on enhanced oil recovery and stable production.
Company Overview
Whitecap Resources is an oil-weighted growth company that pays a monthly cash dividend to its shareholders. Established in September 2009, the company has developed a significant light oil resource base. Its portfolio showcases stable production and low base declines, ensuring predictable cash flow for its dividend payments. The headquarters is located at 3800, 525 - 8th Avenue SW, Eighth Avenue Place, East Tower, Calgary, Alberta, Canada T2P 1G1.
CO2 Sequestration and Environmental Initiatives
Whitecap Resources is recognized for its substantial environmental contributions, especially in CO2 storage. The company sequesters and stores almost 2 million tonnes of CO2 annually, surpassing its corporate emissions. The Weyburn Unit in southeast Saskatchewan is the world's largest carbon capture, utilization, and storage project for enhanced oil recovery using anthropogenic CO2. Additionally, the Joffre Unit in central Alberta represents Canada's first commercial CO2 flood for enhanced oil recovery.
Regional Operations
Whitecap Resources operates in several key regions through its East and West Divisions. The East Division includes Central Alberta, West Saskatchewan, East Saskatchewan, and Weyburn regions, which are known for light oil and medium oil plays, including the high-deliverability Frobisher formation. The West Division focuses on the Smoky, Kaybob, and PRA regions, emphasizing the Montney and Duvernay resource plays. Both divisions are well-equipped with significant inventory and infrastructure to support future growth.
Weyburn CO2 Project
The Weyburn Unit, operated by Whitecap Resources, is the largest Carbon Capture & Utilization Storage (CCUS) project in the world. Since 2000, it has safely captured over 40 million tonnes of CO2. The unit benefits from a low base decline rate of 3-5% and requires low maintenance capital, making it a sustainable and efficient operation within the company's portfolio.
Financial Performance in Q1 2024
In Q1 2024, Whitecap Resources reported record production and increased its annual production guidance by 2,000 boe/d to a range of 167,000 – 172,000 boe/d. The Musreau battery was commissioned and became operational ahead of schedule and under budget. The company showed a net debt of $1.5 billion and declared dividends amounting to $109 million ($0.18 per share).
Community Investment
Whitecap Resources is committed to community support through its investment policy, which prioritizes contributions to charities focused on children's health, education, and wellness. This initiative highlights the company’s dedication to contributing positively to the communities where it operates.