Whitecap Resources Inc. Announces 2013 First Quarter Results as a Dividend-Growth Company

Whitecap Resources Inc. Announces 2013 First Quarter Results as a 
Dividend-Growth Company 
CALGARY, May 6, 2013 /CNW/ - Whitecap Resources Inc. ("Whitecap", "we", "us", 
"our" or the "Company") (TSX: WCP) is pleased to announce that we have filed 
on SEDAR our unaudited interim financial statements and related Management's 
Discussion and Analysis ("MD&A") for the three months ended March 31, 2013. 
Selected financial and operational information is outlined below and should be 
read in conjunction with Whitecap's unaudited interim financial statements and 
related MD&A which are available for review at www.sedar.com and on our 
website at www.wcap.ca. 
                                  Three months ended March 31 
Financial ($000s except per share    
amounts)                                 2013                2012 
Petroleum and natural gas sales       100,240              56,982 
Funds from operations((1))             64,153              33,271 
Basic ($/share)                        0.49                0.42 
Diluted ($/share)                      0.49                0.41 
Net income (loss)                       5,586               7,678 
Basic ($/share)                        0.04                0.10 
Diluted ($/share)                      0.04                0.09 
Dividends paid or declared             19,510                   - 
Per share                              0.15                   - 
Payout ratio (%)((1))                      30                   - 
Development capital expenditures       74,586              63,747 
Property acquisitions (net)             2,139               5,833 
Corporate acquisitions                      -             122,553 
Net debt outstanding((1))             360,753             156,411 
Average daily production                                          
Crude oil (bbls/d)                   11,085               6,168 
NGLs (bbls/d)                         1,319                 457 
Natural gas (mcf/d)                  31,126              18,959 
Total (boe/d)                        17,592               9,785 
Average realized price                                            
Crude oil ($/bbl)                     84.77               88.88 
NGLs ($/bbl)                          51.60               66.44 
Natural gas ($/mcf)                    3.38                2.29 
Total ($/boe)                         63.32               63.63 
Netback ($/boe)                                                   
Petroleum and natural gas sales       63.32               64.00 
Realized hedging gain (loss)           1.21              (1.46) 
Royalties                            (7.09)              (7.81) 
Operating expenses                  (10.78)             (11.61) 
Transportation expenses              (2.18)              (2.37) 
Operating netbacks((1))                 44.48               40.75 
General & administrative             (1.76)              (1.76) 
Interest & financing                 (2.20)              (1.62) 
Cash netbacks((1))                      40.52               37.37 


Share information (000's)                                        

Common shares outstanding, end of    
period                                130,460              89,056

Weighted average basic shares        
outstanding                           129,701              89,056

Weighted average diluted shares      
outstanding                           131,695              78,971


((1)) Funds from operations, payout ratio, net debt, operating netbacks
      and cash netbacks do not have a standardized meaning under GAAP.
      Refer to non-GAAP measures in this press release.

Whitecap is pleased to report our first quarter operational and financial 
results as a dividend-growth company which have exceeded our expectations. Our 
operational activities were focused on efficiently executing on a very active 
capital program in our core light oil areas along with delivering a 
disciplined approach to financial risk management. Once again, we realized a 
strong operating netback of $44.48 per boe in the quarter, demonstrating the 
high quality nature of our production and asset base.

During the quarter we were 100 percent successful with our drilling program, 
drilling 43 (32.2 net) successful oil wells and spending $74.6 million. Our 
drilling activity included 19 (17.4 net) Viking horizontal oil wells in the 
Lucky Hills area in western Saskatchewan, 13 (4.9 net) Cardium oil wells at 
Garrington in west central Alberta including five operated and eight 
non-operated low working interest wells, eight (7.4 net) Cardium horizontal 
oil wells in the greater Pembina area of west central Alberta, two (2.0 net) 
horizontal oil wells at Verlo in southwest Saskatchewan and one (0.5 net) 
Montney horizontal well at Valhalla North in the Peace River Arch area of 

We were once again able to deliver strong capital efficiencies on our first 
quarter capital program as a result of our significant in-house horizontal 
drilling and fracturing expertise as well as the repeatability and 
predictability of our assets. The cash flow netback that we achieved was 
better than projected due to our successful commodity risk management program 
and the Edmonton oil price differential being tighter than forecast, a trend 
we expect to see continue moving forward.

We highlight the following accomplishments in the first quarter of 2013:
    --  Successfully transitioned Whitecap into a sustainable
        dividend-growth model, paying an initial monthly dividend of
        $0.05 per share, totaling $0.15 per share declared in the first
        quarter of 2013.
    --  Grew our average first quarter 2013 production to a record
        17,592 boe/d from 9,785 boe/d in the first quarter of 2012, an
        increase of 80 percent. On a fully diluted per share basis,
        this represents an increase of 9 percent.
    --  Continued to focus our efforts on the highest rate of return
        projects resulting in an increase to our oil and NGL weighting
        from 69 percent in the prior period to 71 percent in the first
        quarter of 2013.
    --  Funds from operations hit a record $64.2 million ($0.49 per
        fully diluted share) compared to $33.3 million ($0.41 per fully
        diluted share) in the first quarter of 2012, an increase of 93
        percent. On a fully diluted per share basis, this represents an
        increase of 20 percent.
    --  Strong operating netback of $44.48 per boe in the first quarter
        of 2013 due to a 7 percent reduction in operating costs to
        $10.78 per boe and the realization of a hedging gain of $1.9
        million through our risk management program.
    --  Invested $74.6 million in field expenditures, drilling 43 (32.2
        net) wells with a 100 percent success rate.

Subsequent to the quarter end, we successfully closed the previously announced 
acquisition of Invicta Energy Corp. ("Invicta") for approximately $0.2 million 
in cash, the issuance of 4.8 million common shares and the assumption of 
Invicta's net debt. This complementary acquisition adds a significant amount 
of longer term, low risk, high netback upside potential in our ever expanding 
Viking light oil core area.

As well, on April 29, 2013 we were pleased to announce an additional Dodsland 
Viking light oil property acquisition and a concurrent equity financing along 
with increased 2013 guidance. This acquisition further strengthens the 
sustainability of our dividend-growth strategy by increasing our level of high 
netback, low decline assets that can provide consistent growth and substantial 
free cash flow. The acquisition and financing are expected to close before the 
end of May 2013.

To our shareholders who continue to support our Whitecap story, we thank you 
and look forward to reporting back to you as we move through the remainder of 
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. In particular, this press 
release contains forward-looking information relating to our ongoing business 
plan, strategy and targets, industry conditions, commodity prices, capital 
spending, production and cash flow, drilling inventory or development and 
drilling plans, potential growth, the benefits to be obtained from the Invicta 
acquisition and the expected timing of closing the Dodsland acquisition and 

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; our ability to access 
capital and the satisfaction of closing conditions for the acquisition and the 
financing and on the expected timing.

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 includes non-GAAP measures as further described herein. These 
non-GAAP measures do not have a standardized meaning prescribed by 
International Financial Reporting Standards ("IFRS or, alternatively, "GAAP") 
and therefore may not be comparable with the calculation of similar measures 
by other companies.

"Funds from operations" represents cash flow from operating activities 
adjusted for changes in non-cash working capital, transaction costs and asset 
retirement settlements. Management considers funds from operations and funds 
from operations per share to be key measures as they demonstrate Whitecap's 
ability to generate the cash necessary to pay dividends, repay debt, fund 
asset retirement obligations and make capital investments. Management believes 
that by excluding the temporary impact of changes in non-cash operating 
working capital, funds from operations provides a useful measure of Whitecap's 
ability to generate cash that is not subject to short-term movements in 
non-cash operating working capital.

The following table reconciles cash flow from operating activities (a GAAP 
measure) to funds from operations (a non-GAAP measure):
                                              Three months ended
                                                       March 31,

($000s)                                         2013        2012

Cash flow from operating activities           59,340      34,920

Changes in non-cash working capital            4,747     (2,679)

Transaction costs                                  -         564

Settlement of decommissioning liabilities         66         466

Funds from operations                         64,153      33,271

Cash dividends declared                       19,510           -

Payout ratio                                     30%           -

"Operating netbacks" are determined by deducting royalties, production 
expenses and transportation and selling expenses from oil and gas revenue. 
Operating netbacks are per boe measures used in operational and capital 
allocation decisions.

"Cash netbacks" are determined by deducting cash general and administrative 
and interest expense from Operating netbacks.

"Cash dividends per share" represents cash dividends declared per share by 

"Payout ratio" is calculated as cash dividends declared divided by funds from 

"Net debt" is calculated as bank debt plus working capital deficiency adjusted 
for risk management contracts. Net debt is used by management to analyze the 
financial position and leverage of Whitecap.

The following table reconciles bank debt (a GAAP measure) to net debt (a 
non-GAAP measure):

                           March 31,   December 31,
($000s)                             2013           2012 
Bank debt                        335,895        310,700 
Current liabilities              105,560        104,903 
Current assets                  (76,770)       (82,272) 
Risk management contracts        (3,932)         10,663 
Net Debt                         360,753        343,994 
"Boe" means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 
bbl of oil. Boes 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 and CEO or Thanh Kang, VP Finance and 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
-0- May/06/2013 12:00 GMT
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