Tudor, Pickering, Holt on Tuesday reiterated its buy rating on the shares of Whitecap Resources (WCP.TO) with a C$14.00 price target following the Western Canadian oil and gas producer's fourth-quarter results.
On Q4 results, C$0.72 CFPS beat TPHe/Street C$0.67, owing to a combination of production, higher gas realizations, and lower royalties. Production was the largest component (~40%) of the beat vs. our model, with WCP printing 380mboepd vs TPHe/Street 375/372 with the delta almost entirely made up of liquids, though volumes came with higher-than-expected capex of C$696MM vs. TPHe/Street C$621MM/C$649MM. That said FCF still slightly beat expectations, at C$186MM vs. TPHe/Street C$201MM/C$170MM, and implied headline capital efficiency screened better than our model at first blush, which on our type curves would need >C$720MM in capex to match on volumes (though could be timing related). Looking ahead, the FY'26 outlook was reiterated at C$2.0-2.1B capex for 370-375mboepd (unchanged from Investor Day), implying FY'26 FCF of ~C$960MM at strip," analyst Jeoffrey Lambujon wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 13.93, Change: +0.17, Percent Change: +1.24
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