CALGARY, May 22, 2013 /CNW/ - Whitecap Resources Inc. ("Whitecap" or the
"Company") (TSX: WCP) is pleased to announce successful completion of
the acquisition of an existing Viking light oil waterflood asset in the
Dodsland area of west central Saskatchewan as previously detailed in
our April 29, 2013 press release. The acquisition adds 900 boe/d (95
percent light oil) of high netback, operated production with a low base
decline of 20 percent. Total consideration for the acquisition was $110
million subject to post-closing adjustments. The acquisition represents
the continuation of Whitecap's objective to strengthen the
sustainability of our dividend-growth strategy through the acquisition
of high netback assets that can provide consistent growth and
substantial free cash flow.
Whitecap Resources Inc. is a dividend paying, oil-weighted company
focused on providing sustainable monthly dividends to its shareholders
and per share growth through a combination of accretive oil-based
acquisitions and organic growth on existing and acquired assets. For
further information about Whitecap please visit our website at www.wcap.ca.
This document contains the terms "cash flow", "free cash flow" and
"netbacks" which do not have a standardized meaning prescribed by
Canadian GAAP and therefore may not be comparable with the calculation
of similar measures by other companies. Whitecap uses cash flow, free
cash flow and netbacks to analyze financial and operating performance.
Whitecap feels these benchmarks are key measures of profitability and
overall sustainability for the Company. Each of these terms is commonly
used in the oil and gas industry. Cash flow, free cash flow and
netbacks are not intended to represent operating profits nor should
they be viewed as an alternative to cash flow provided by operating
activities, net earnings or other measures of financial performance
calculated in accordance with GAAP. Cash flows are calculated as cash
flows from operating activities less changes in non-cash working
capital. Free cash flows are calculated as cash flow minus development
capital expenditures. Netbacks are determined by deducting royalties,
production expenses and transportation and selling expenses from oil
and gas revenue.
Note: "Boe" means barrel of oil equivalent on the basis of 6 mcf of
natural gas to 1 bbl of oil. Boe's may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on
an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
Given the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy
equivalency of 6 Mcf: 1 Bbl, utilizing a conversion ratio at 6 Mcf: 1
Bbl may be misleading as an indication of value.
SOURCE: Whitecap Resources Inc.
For further information:
Grant Fagerheim, President & CEO
Thanh Kang, VP Finance & CFO
Whitecap Resources Inc.
500, 222 - 3 Avenue SW
Calgary, AB T2P 0B4
Main Phone: (403) 266-0767
Fax: (403) 266-6975