Whitecap Resources Inc. Announces Transition to a Sustainable Intermediate Light Oil Dividend-and-Growth Company and 2013

Whitecap Resources Inc. Announces Transition to a Sustainable Intermediate 
Light Oil Dividend-and-Growth Company and 2013 Guidance 
CALGARY, Nov. 20, 2012 /CNW/ - Whitecap Resources Inc. ("Whitecap", "we", 
"us", "our" or the "Company") (TSX: WCP) is pleased to announce its plans to 
transition to a pre-eminent intermediate size light oil producer focused on 
paying sustainable dividends and delivering long term per share growth. 
STRATEGIC RATIONALE 
Since inception Whitecap has delivered 33 percent compounded annual production 
growth on a fully diluted per share basis. We have strategically acquired and 
integrated light oil assets that have predictable production profiles, shallow 
declines, strong netbacks, and large repeatable light oil development drilling 
inventories. All these factors allow us to seamlessly transition to a 
dividend-and-growth model that can support sustainable dividend payments to 
our shareholders and also provide continuing annual per share growth of 3 to 5 
percent. 
Our assets currently under management provide high operating netbacks and, 
when combined with our low corporate cost structure, generate strong cash flow 
netbacks which will allow us to fully fund our planned dividend payments and 
capital program through internally generated funds from operations. Our basic 
payout ratio for 2013 is expected to be 32 percent and we anticipate total 
capital spending and dividend payments to represent less than 95 percent of 
our funds from operations. 
We at Whitecap believe we have the key attributes to successfully transition 
to a sustainable income plus dividend-and-growth model. 
 _____________________________________________________________________
|Sustainability Criteria       |Whitecap Resources Inc.               |
|______________________________|______________________________________|
|Strong Capital Efficiencies   |    --  Strong production replacement |
|                              |        costs and recycle ratios      |
|                              |    --  Light oil focused capital     |
|                              |        program driving drill bit     |
|                              |        capital efficiencies of       |
|______________________________|________$25,000_to_$30,000_per_boe/d__|
|Solid Netbacks                |    --  Oil-weighted production       |
|                              |        generates high operating      |
|                              |        netbacks of $43.00/boe and    |
|                              |        cash flow  netbacks of        |
|                              |        $39.00/boe (2013 estimate)    |
|                              |    --  71 percent oil and NGL        |
|______________________________|________weighting_____________________|
|Low Decline Rate              |    --  Base decline of 31 percent in |
|                              |        2013 to support dividend and  |
|                              |        reinvestment in core light oil|
|                              |        resource areas                |
|                              |    --  Base decline forecast to      |
|                              |        decrease with the change in   |
|                              |        growth profile; 27 percent in |
|______________________________|________2014_and_23_percent_in_2015___|
|Significant Drilling Inventory|    --  Large inventory of            |
|                              |        oil-weighted, highly economic |
|                              |        drilling locations            |
|                              |    --  >850 (10+ years) low risk     |
|                              |        light oil development drilling|
|______________________________|________locations_____________________|
|Strong Hedging Program        |    --  Strong hedging program to     |
|                              |        mitigate risks associated with|
|                              |        fluctuation in commodity      |
|                              |        prices which in turn provides |
|                              |        greater predictability over   |
|                              |        funds from operations and     |
|                              |        dividend payments             |
|                              |    --  Currently hedged 49 percent of|
|                              |        2013 crude oil production, net|
|                              |        of royalties at an average    |
|                              |        floor price of C$99.77/bbl    |
|                              |    --  Currently hedged 38 percent of|
|                              |        2013 natural gas production,  |
|                              |        net of royalties at an average|
|                              |        floor price of C$3.26/mcf     |
|                              |    --  We anticipate hedging up to 75|
|                              |        percent of volumes, net of    |
|                              |        royalties using a rolling 3   |
|                              |        year price risk management    |
|______________________________|________program_______________________|
|Clean Balance Sheet           |    --  Clean balance sheet to provide|
|                              |        financial and operational     |
|                              |        flexibility                   |
|                              |    --  Expect to exit 2012 with net  |
|                              |        debt of $335 million on a $450|
|                              |        million credit facility       |
|                              |    --  2013 estimated debt to funds  |
|______________________________|________from_operations_of_1.2x_-_1.3x|
|Strong Management Team        |    --  A disciplined and experienced |
|                              |        management team with a track  |
|                              |        record of sustained per share |
|                              |        growth, operational efficiency|
|______________________________|________and_value_creation____________| 
2013 GUIDANCE 
2013 will be a transitional year for Whitecap as we advance from a high growth 
energy company to a dividend-and-growth entity with focus on sustainable 
dividend payments while maintaining emphasis on per share growth in 
production, reserves and funds from operations. 
For 2013, Whitecap is pleased to announce that our Board of Directors has 
approved a $152 million capital program and an initial monthly dividend policy 
of $0.05 per share commencing January 2013 with the first dividend payment in 
February 2013, all of which is anticipated to be funded through funds from 
operations. Our dividend policy is reviewed monthly and is based on a number 
of factors including current and future commodity prices, foreign exchange 
rates, our commodity hedging program, current operations and future investment 
opportunities. Each dividend declaration will be confirmed by a monthly 
press release. 
In each of our core operating areas the funds from operations we forecast for 
2013 are in excess of the forecasted capital spending in these areas which 
enables us to not only grow production but distribute excess funds from 
operations to our shareholders. The 2013 capital program will focus on 
advancing the development of our core areas, specifically targeting the 
Cardium, Viking and Montney oil reservoirs, which make up 97% of our current 
production and opportunities. We have demonstrated a track record of success 
in these plays which we will continue to execute in the new model. 
We plan to drill between 70 - 75 (65 - 70 net) light oil wells for the year 
including five (3.5 net) wells to advance the Valhalla North Montney 
waterflood project, 32 (31.4 net) horizontal Cardium oil wells split equally 
between the Garrington and greater Pembina areas of Alberta, 33 (30.1 net) 
horizontal Viking oil wells in the Lucky Hills area in western Saskatchewan, 
and two (1.8 net) oil wells in the Fosterton area of southwest Saskatchewan. 
2013 summary guidance as follows: 
                          2013 Budget     2012 Forecast   % Change 
Average production (boe/d)    16,800 - 17,000 14,000          21% 
  Per MM shares (fully    124             115             8%
diluted) 
  % Oil + NGLs            71%             69%             2% 
                                                            
Exit production (boe/d)       17,000 - 17,400 16,900 - 17,100 3% 
                                                            
Funds from operations ($mm)   240 - 245       190             29% 
  Per share ($fully       1.77 - 1.80     1.56            15%
diluted) 
                                                            
Operating netback ($/boe)     43.00           42.00           2% 
Cash flow netback ($/boe)     39.00           37.50           4% 
                                                            
Development capital spending  150 - 155       235 - 240       (35%)
($mm) 
Wells drilled (gross #)       70 - 75         105 - 110       (32%) 
                                                            
Net debt to funds from        1.2x - 1.3x     1.8x            (33%)
operations 
                                                            
Edmonton Par (C$/bbl)         85.00           86.35           (2%) 
AECO gas price (C$/GJ)        3.30            2.31            43% 
CAD/USD exchange rate         1.0             1.0             - 
As with 2012, we anticipate experiencing commodity price volatility in 2013 
and continue to believe that crude oil should average between $80 - $95 WTI. 
We also expect the differential between WTI and Edmonton Par to continue to be 
volatile while transportation alternatives are continually being developed 
either by pipeline or rail out of western Canada. Our light oil production 
attracts a much tighter price differential than heavy oil and we remain active 
on mitigating negative price differentials while optimizing our realized 
commodity price and cash flow netbacks. 
OUTLOOK FOR THE FUTURE 
Since we initially contemplated dividend payments in February 2012 we have 
done a significant amount of stress testing on our modeling assumptions; 
considering commodity prices, decline rates, capital efficiencies, and debt 
levels to ensure long-term sustainability. We believe that over the next three 
years we are capable of providing a reliable and sustainable dividend of $0.60 
per share per year with the objective to increase the dividend paid over time 
while providing 3 - 5 percent annual per share growth. 
On behalf of our Board of Directors and our entire team, I would like to thank 
you for your support of Whitecap to date. We also look forward to the 
transition to a dividend-and-growth company and reporting back to you with our 
progress in 2013 and beyond. 
Note Regarding Forward Looking Statements and Other Advisories 
This press release contains forward-looking statements and forward-looking 
information (collectively "forward-looking information") within the meaning of 
applicable securities laws relating to the Company's plans and other aspects 
of our anticipated future operations, management focus, strategies, financial, 
operating and production results and business opportunities. Forward-looking 
information typically uses words such as "anticipate", "believe", "project", 
"expect", "goal", "plan", "intend" or similar words suggesting future 
outcomes, statements that actions, events or conditions "may", "would", 
"could" or "will" be taken or occur in the future, including statements about 
our strategy, plans and focus, future dividends and dividend policy, forecast 
annual per share growth, the source of funding of dividend payments, planned 
capital expenditures and the source of funding of our capital program, 
projected payout ratios and dividend yields, expected future production and 
product mix, forecast operating and financial results including funds from 
operations and operating and cash flow netbacks, future decline rates, 
drilling inventories and drilling plans, hedging plans and the benefits to be 
obtained from our hedging program, anticipated debt levels and our debt to 
funds from operations ratio, forecasted commodity prices and differentials, 
forecasted exchange rates and anticipated production costs, recycle ratios and 
capital efficiencies. 
The forward-looking information is based on certain key expectations and 
assumptions made by our management, including expectations and assumptions 
concerning prevailing commodity prices, exchange rates, interest rates, 
applicable royalty rates and tax laws; future production rates and estimates 
of operating costs; performance of existing and future wells; reserve and 
resource volumes; anticipated timing and results of capital expenditures; the 
success obtained in drilling new wells; the sufficiency of budgeted capital 
expenditures in carrying out planned activities; the timing, location and 
extent of future drilling operations; the state of the economy and the 
exploration and production business; results of operations; performance; 
business prospects and opportunities; the availability and cost of financing, 
labour and services; the impact of increasing competition; ability to 
efficiently integrate assets and employees acquired through acquisitions, 
ability to market oil and natural gas successfully and our ability to access 
capital. 
Although we believe that the expectations and assumptions on which such 
forward-looking information is based are reasonable, undue reliance should not 
be placed on the forward-looking information because Whitecap can give no 
assurance that they will prove to be correct. Since forward-looking 
information addresses future events and conditions, by its very nature they 
involve inherent risks and uncertainties. Our actual results, performance or 
achievement could differ materially from those expressed in, or implied by, 
the forward-looking information and, accordingly, no assurance can be given 
that any of the events anticipated by the forward-looking information will 
transpire or occur, or if any of them do so, what benefits that we will derive 
therefrom. Management has included the above summary of assumptions and risks 
related to forward-looking information provided in this press release in order 
to provide securityholders with a more complete perspective on our future 
operations and such information may not be appropriate for other purposes. 
Readers are cautioned that the foregoing lists of factors are not exhaustive. 
Additional information on these and other factors that could affect our 
operations or financial results are included in reports on file with 
applicable securities regulatory authorities and may be accessed through the 
SEDAR website (www.sedar.com). 
These forward-looking statements are made as of the date of this press release 
and we disclaim any intent or obligation to update publicly any 
forward-looking information, whether as a result of new information, future 
events or results or otherwise, other than as required by applicable 
securities laws. 
Non-GAAP Measures 
This press release contains the terms "funds from operations", "operating 
netbacks" and "cash flow netbacks", which do not have a standardized meaning 
prescribed by GAAP and therefore may not be comparable with the calculation of 
similar measures by other companies. Whitecap uses funds from operations, 
operating netbacks and cash flow netbacks to analyze financial and operating 
performance. Whitecap believes these benchmarks are key measures of 
profitability and overall sustainability for the Company. These terms are 
commonly used in the oil and gas industry. Funds from operations, operating 
netbacks and cash flow netbacks are not intended to represent operating 
profits nor should they be viewed as an alternative to funds from operations 
provided by operating activities, net earnings or other measures of financial 
performance calculated in accordance with GAAP. Funds from operations are 
calculated as funds from operations from operating activities excluding 
transaction costs less changes in non-cash working capital. Operating netbacks 
are determined by deducting royalties, production expenses and transportation 
and selling expenses from oil and gas revenue. Cash flow netbacks are 
determined by deducting general and administrative and interest and financing 
expenses from the operating netback. The Company calculates funds from 
operations per share using the same method and shares outstanding that are 
used in the determination of earnings per share. 
"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. In addition, given that 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: 1, utilizing a conversion on a 6:1 
basis may be misleading as an indication of value. 
Grant Fagerheim, President & CEO or 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 
SOURCE: Whitecap Resources Inc. 
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CO: Whitecap Resources Inc.
ST: Alberta
NI: OIL  
-0- Nov/20/2012 23:00 GMT