Whitecap profit jumps to C$326.4 million in third quarter
Key Facts
Whitecap Resources reported net income of C$326.4 million in the third quarter of 2026, compared with C$204.2 million in the same period of 2025, while earnings per share rose to C$0.27 from C$0.17. The company said strong operations and higher prices for light oil and condensate supported cash flow during the quarter. Oil and gas revenue was C$2.4115 billion, versus C$1.6603 billion a year earlier. Average daily production also rose to 390,720 barrels of oil equivalent from 374,623 barrels. The results show simultaneous growth in production and realized prices, while earnings per share remained below the forecast cited by Investing.com.
According to company data, the realized price for crude oil and condensate rose 35% year over year to C$113.89 a barrel in the third quarter. Whitecap attributed cash-flow support to strong operating performance and higher prices for light oil and condensate. The company also recorded an increase in average daily production from the year-earlier period. These figures put revenue growth in the context of both higher volumes and a higher realized price. Results extended beyond earnings: the company said net debt had fallen by about C$1.3 billion since the end of 2025 to C$2.1 billion at the end of the third quarter. Net debt to annualized cash flow was 0.4 times, according to its statement.
Whitecap raised its 2026 average production guidance for the third time this year, to 392,000 barrels of oil equivalent a day. The company expects fourth-quarter production to range from 395,000 to 400,000 barrels a day. The guidance increase therefore extends through the rest of the year, after average production reached 390,720 barrels a day in the third quarter. The company also announced a 2027 capital budget of C$2.4 billion to C$2.6 billion. The budget targets average production of 400,000 to 410,000 barrels of oil equivalent a day. Whitecap said its spending and production program represents its operating plan for next year.
The company expects free cash flow of about C$1.6 billion in 2027, after capital investment of C$2.5 billion, assuming West Texas Intermediate crude is priced at US$80 a barrel. Free cash flow could rise to about C$2 billion if the proposed “productivity super-deduction” is enacted. Whitecap said its base 2027 forecast does not include the impact of the deduction, making the potential increase conditional on its approval. The distinction between the base forecast and the conditional scenario shows the scale of the impact the company attributes to the proposed tax measure. On shareholder returns, the company announced an increase of about 1.5% in its monthly distribution to C$0.0617 a share. The increase applies to the November 2026 distribution, payable in December.
The 2027 program includes a planned major shutdown at the 15-07 gas plant and a third-party processing facility in Kaybob during the third quarter. The company expects the shutdown to reduce production in that quarter by about 32,000 barrels of oil equivalent a day. Its statement estimated the impact on average annual production at about 8,000 barrels a day. The work is part of the operating schedule the company set for next year, alongside its production target range of 400,000 to 410,000 barrels a day. In the market’s reaction after the results, the shares fell 3.43% to C$19.73 in after-hours trading on October 29, compared with a previous close of C$20.43. Investing.com said earnings per share of C$0.27 came in below its forecast of C$0.37.