Whitecap Resources Inc. Announces Closing of Previously Announced Acquisition of Strategic Light Oil Assets and Increases Credi

Whitecap Resources Inc. Announces Closing of Previously Announced Acquisition 
of Strategic Light Oil Assets and Increases Credit Facilities 
CALGARY, May 1, 2014 /CNW/ - Whitecap Resources Inc. ("Whitecap" or the 
"Company") (TSX: WCP) is pleased to announce that it has completed its 
previously announced acquisition of certain strategic light oil assets focused 
primarily in Whitecap's Pembina Cardium / West Central core area, as well as 
at Boundary Lake in northeast B.C. and the concurrent disposition of certain 
Nisku natural gas production and related facilities located in the Pembina 
area to Keyera Corp. will be closing later today following satisfaction of the 
closing conditions ("the Acquisition"). On closing of the Acquisition, 
Whitecap will have paid $678.0 million cash which is net of customary closing 
adjustments and the expected proceeds from the disposition. 
The acquired assets greatly enhance our sustainable dividend-growth model as 
they are synergistic to our current operations, accretive on all key measures 
and consistent with our objective of maximizing total shareholder return. The 
Acquisition further strengthens Whitecap's ability to pay a long-term dividend 
while growing organically on a per share basis, all within internally 
generated cash flow. 
Concurrent with closing of the Acquisition, Whitecap's credit facilities have 
been increased to $1 billion from the previous $600 million. In addition, as 
part of the $1 billion credit facility, Whitecap has layered on an incremental 
$200 million of five year term debt at an effective interest rate of 4.7%. 
Whitecap continues to maintain considerable financial flexibility after 
closing of the Acquisition with more than $300 million of current unutilized 
borrowing capacity. 
Whitecap's Board of Directors approved a 10.3% increase in the monthly cash 
dividend to $0.0625 per share from the current level of $0.0567 per share. The 
increase is effective for the May dividend payable on June 15, 2014. 
Our current production is approximately 35,500 boe/d (73% oil and NGL's) which 
puts us well on track to meet our 2014 annual production guidance of 31,600 
boe/d (73% oil and NGL's) which generates $493 million of cash flow based on a 
cash flow netback of $42.70/boe. After development capital spending of $307 
million and dividend payments of $168 million, this will leave Whitecap with 
$18 million of excess free cash flow in 2014. Our total payout ratio for 2014 
is estimated to be 96% which will be reduced to 84% in 2015. Whitecap's 
estimated excess free cash flow in 2015 is $98 million based on a cash flow 
netback of $47.45/ boe ((1)). 
The Acquisition was partially funded through a bought deal public financing 
(the "Offering") through a syndicate of underwriters co-led by National Bank 
Financial Inc. and TD Securities Inc. and including GMP Securities L.P., 
Dundee Securities Inc., RBC Capital Markets, Scotia Capital Inc., CIBC World 
Markets, FirstEnergy Capital Corp., Macquarie Capital Markets Canada Ltd., 
Peters & Co. Limited, Raymond James Ltd., and Cormark Securities Inc. 
(collectively, the "Underwriters") which closed on April 8, 2014. Pursuant to 
the Offering, Whitecap issued 44,643,000 subscription receipts at a price of 
$11.20 per subscription receipt for gross proceeds of approximately $500 
million. In accordance with their terms, each Subscription Receipt was 
exchanged for one Common Share on May 1, 2014 upon the closing of the 
Acquisition and the proceeds from the sale of the subscription receipts were 
released from escrow. 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. Holders of the subscription receipts shall receive an 
amount equal to the dividend declared on our Common Shares of $0.0567 per 
subscription receipt, this amount will be paid on May 15, 2014 to the holders 
of subscription receipts of record on April 30, 2014. 
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. 

    (1)    Cash flow netback based on 2014 average WTI US$96.75/bbl, AECO
           C$4.40/GJ and CAD/USD 0.90 and 2015 average WTI US$95.00/bbl,
           AECO C$4.00/GJ and CAD/USD 0.90. Current production and 2014 and
           2015 estimates are net of the disposition of certain Nisku
           natural gas production and related facilities located in the
           Pembina area to Keyera Corp.

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 the anticipated benefits from the Acquisition, 
including our beliefs that the acquired assets are synergistic to Whitecap's 
current operations, highly accretive to our shareholders and consistent with 
our objective of maximizing total annual shareholder return and that the 
Acquisition will further strengthens Whitecap's long-term sustainability to 
grow organically on a per share basis while paying a consistent dividend, all 
within internally generated cash flow; the impact of the Acquisition on 
Whitecap's operations, opportunities, financial condition, sustainability and 
overall strategy; expectations with respect to future cash flow, cash flow 
netbacks, total payout ratio, excess free cash flow, net debt, payout ratio 
and other financial results, Whitecap's business and acquisition strategy, the 
Company's financial flexibility and current and expected unutilized borrowing 
capacity; the timing of the closing and the expected proceeds of the 
disposition; Whitecap's dividend policy and the increase to the Whitecap 
dividend including the timing of the increase and the future payment thereof; 
the payment of the dividend equivalent amount to the holders of subscription 
receipts, Whitecap's ability to grow organically on a per share basis within 
internally generated cash flows; 2014 and 2015 production and product mix; and 
our capital expenditure program, drilling and development plans and the timing 
thereof and sources of funding.

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 our ability to execute and realize on the anticipated 
benefits of the Acquisition; 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; 
ability to market oil and natural gas successfully; Whitecap's ability to 
access capital, and the amount of future cash dividends that we intend to pay;.

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, including, without limitation, 
incorrect assessments of the value of benefits to be obtained from the 
Acquisition;  failure to realize the anticipated benefits of the Acquisition; 
unforeseen difficulties in integrating the assets acquired pursuant to the 
Acquisition into Whitecap's operations; volatility in market prices for oil 
and natural gas and foreign exchange rates; operational risks and liabilities 
inherent in oil and natural gas operations; uncertainties associated with 
estimating oil and natural gas reserves; competition for, among other things, 
capital, acquisitions of reserves, undeveloped lands and skilled personnel; 
geological, technical, drilling and processing problems; changes in general 
economic, market and business conditions; the accuracy of oil and gas reserves 
estimates and estimated production levels as they are affected by exploration 
and development drilling and estimated decline rates; the uncertainties in 
regard to the timing of Whitecap's exploration and development program; 
fluctuations in the costs of borrowing; political or economic developments; 
the ability to obtain regulatory approvals; the occurrence of unexpected 
events; the results of litigation or regulatory proceedings that may be 
brought against Whitecap; changes in income tax laws or changes in tax laws 
and incentive programs relating to the oil and gas industry; and other 
factors, many of which are beyond the control of Whitecap.

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 
security holders 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.

This press release contains future-oriented financial information and 
financial outlook information (collectively, "FOFI") about Whitecap's 
prospective results of operations, cash flows, and components thereof, all of 
which are subject to the same assumptions, risk factors, limitations, and 
qualifications as set forth in the above paragraphs. FOFI contained in this 
release was made as of the date of this release and was provided for the 
purpose of describing the anticipated effects of the Acquisition and the 
dividend increase on Whitecap's business operations. Whitecap disclaims any 
intention or obligation to update or revise any FOFI contained in this 
document, whether as a result of new information, future events or otherwise, 
unless required pursuant to applicable law. Readers are cautioned that the 
FOFI contained in this document should not be used for purposes other than for 
which it is disclosed herein.

Non-GAAP Measures

This press release contains the terms "cash flow", "free cash flow", 
"operating netbacks", "cash flow netbacks" and "total payout ratio" which 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. 
Whitecap uses cash flow, free cash flow, operating netbacks, cash flow 
netbacks and total payout ratio 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, operating 
netbacks, cash flow netbacks and total payout ratio 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 adjusted for changes in 
non-cash working capital, transaction costs and asset retirement settlements. 
Free cash flows are calculated as cash flow minus development capital 
expenditures and dividends paid or declared. 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 interest, general and administrative expenses and taxes from 
operating netbacks. Total payout ratio is calculated as development capital 
expenditures and dividends paid or declared divided by cash flow.

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. 
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   
To view this news release in HTML formatting, please use the following URL: 
CO: Whitecap Resources Inc.
ST: Alberta
-0- May/01/2014 14:47 GMT
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