Whitecap Resources Inc. announces closing of previously announced working interest consolidation of its Valhalla and Garrington

Whitecap Resources Inc. announces closing of previously announced working 
interest consolidation of its Valhalla and Garrington light oil core areas 
CALGARY, July 31, 2013 /CNW/ - Whitecap Resources Inc. ("Whitecap" or the 
"Company") (TSX: WCP) is pleased to announce the successful completion of its 
previously announced acquisition of certain strategic light oil assets located 
predominantly in its core Valhalla and Garrington operated areas of Alberta 
for total consideration of $173.6 million (the "Acquisition") as previously 
detailed in our June 27, 2013 press release. The Acquisition adds 2,900 boe/d 
(56 percent oil and NGLs) of high netback, low base decline production (16 
percent current decline rate) in areas where Whitecap already operates 96 
percent of the production. 
We continue to focus on maximizing total shareholder return and the 
Acquisition solidifies Whitecap as a premier intermediate oil-weighted, 
dividend paying company focused on per share growth in cash flow, production 
and reserves. Whitecap has demonstrated the sustainability of its 
dividend-growth strategy in the first half of 2013 and will continue to do so 
for the balance of the year and into 2014 and 2015. We anticipate average 
production of 20,000 - 21,000 boe/d in the second half of 2013 which will 
generate cash flow of $145 - $150 million based on a cash flow netback of 
$39.50/boe. After development capital spending of $75 million and dividend 
payments of $50.2 million, this will leave Whitecap with $24.8 million of 
excess free cash flow in the second half of 2013. Our total payout ratio for 
the second half of 2013 is estimated to be 83 percent and 97 percent for the 
full year. 
The Acquisition was partially funded through a bought deal public financing 
(the "Offering") which closed on July 18, 2013, through a syndicate of 
underwriters co-led by GMP Securities L.P. and National Bank Financial Inc. 
and including Dundee Securities Ltd., FirstEnergy Capital Corp., Macquarie 
Capital Markets Canada Ltd., TD Securities Inc., CIBC World Markets Inc., 
Raymond James Ltd., Scotia Capital Inc., Peters & Co. Limited and RBC Capital 
Markets. Pursuant to the Offering, Whitecap issued 17,172,000 Subscription 
Receipts of Whitecap at a price of $9.90 per Subscription Receipt to raise 
gross proceeds of approximately $170 million. In accordance with their terms, 
each Subscription Receipt was exchanged for one Common Share on July 31, 2013 
upon the closing of the Acquisition and the proceeds from the sale of the 
Subscription Receipts were released from escrow. Holders of Subscription 
Receipts issued under the Offering are now holders of Common Shares and as a 
result, will be entitled to the $0.05 per share dividend payable to 
shareholders of record as of July 31, 2013, which Whitecap previously 
announced would be payable on August 15, 2013. Holders of Subscription 
Receipts are not required to take any action in order to receive the Common 
Shares and dividends to which they are entitled. 
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. 
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 Whitecap's anticipated future operations, management focus, objectives, 
strategies, financial, operating and production results and business 
opportunities, including expected 2013 and 2014 production, product mix, cash 
flow, and operating netbacks. In addition, and without limiting the generality 
of the foregoing, this press release contains forward-looking information 
regarding the benefits to be acquired from the Acquisition including 
anticipated rates of return, operating costs, netbacks and other economics, 
production levels, and the impact of the Acquisition on Whitecap and its 
results and development plans, including, on its production, cash flow, 
production weighting, netbacks, development capital spending and free cash 
flow. 
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. The 
forward-looking information is based on certain key expectations and 
assumptions made by Whitecap's 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, labor and services; the impact of increasing competition; and 
the ability to market oil and natural gas successfully. 
Although the Company believes 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. The Company's 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 the 
Company will derive there from. 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 Whitecap's 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 Whitecap disclaims 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 document contains the terms "cash flow", "free cash flow" and "operating 
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 operating 
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 operating 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. Operating 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. 
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. 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/July2013/31/c2805.html 
CO: Whitecap Resources Inc.
ST: Alberta
NI: OIL MNA FIN  
-0- Jul/31/2013 21:00 GMT
 
 
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