Selected financial and operating information is outlined below and should be read with Whitecap's unaudited interim consolidated financial statements and related management's discussion and analysis for the three and nine months ended
Financial ($ millions except for share amounts and percentages) | Three months ended | Nine months ended | ||
2023 | 2022 | 2023 | 2022 | |
Petroleum and natural gas revenues | 955.9 | 1,070.5 | 2,637.5 | 3,336.4 |
Net income | 152.7 | 324.5 | 590.7 | 1,357.5 |
Basic ($/share) | 0.25 | 0.53 | 0.98 | 2.19 |
Diluted ($/share) | 0.25 | 0.53 | 0.97 | 2.17 |
Funds flow 1 | 466.0 | 546.8 | 1,329.1 | 1,729.1 |
Basic ($/share) 1 | 0.77 | 0.89 | 2.19 | 2.80 |
Diluted ($/share) 1 | 0.76 | 0.88 | 2.18 | 2.77 |
Dividends declared | 87.8 | 67.2 | 263.2 | 170.0 |
Per share | 0.15 | 0.11 | 0.43 | 0.28 |
Expenditures on property, plant and equipment 2 | 281.9 | 208.0 | 753.3 | 507.5 |
Total payout ratio (%) 1 | 79 | 50 | 76 | 39 |
Net Debt 1 | 1,260.2 | 2,192.3 | 1,260.2 | 2,192.3 |
Operating | ||||
Average daily production | ||||
Crude oil (bbls/d) | 85,238 | 85,137 | 84,717 | 84,599 |
NGLs (bbls/d) | 17,804 | 16,513 | 16,640 | 14,863 |
Natural gas (Mcf/d) | 323,903 | 264,886 | 310,531 | 225,076 |
Total (boe/d) 3 | 157,026 | 145,798 | 153,112 | 136,975 |
Average realized Price 1,4 | ||||
Crude oil ($/bbl) | 103.72 | 111.64 | 95.43 | 119.13 |
NGLs ($/bbl) | 36.75 | 55.87 | 39.32 | 58.65 |
Natural gas ($/Mcf) | 2.76 | 4.56 | 2.97 | 5.65 |
Petroleum and natural gas revenues ($/boe) 1 | 66.17 | 79.81 | 63.10 | 89.22 |
Operating Netback ($/boe) 1 | ||||
Petroleum and natural gas revenues | 66.17 | 79.81 | 63.10 | 89.22 |
Tariffs 1 | (0.50) | (0.39) | (0.51) | (0.44) |
Processing & other income 1 | 0.79 | 0.74 | 0.90 | 0.64 |
Marketing revenues 1 | 5.04 | 6.03 | 4.91 | 6.02 |
Petroleum and natural gas sales 1 | 71.50 | 86.19 | 68.40 | 95.44 |
Realized gain/(loss) on commodity contracts 1 | 0.04 | (2.20) | 0.52 | (5.98) |
Royalties 1 | (11.53) | (16.29) | (10.90) | (17.58) |
Operating expenses 1 | (13.97) | (14.85) | (14.35) | (14.71) |
Transportation expenses 1 | (2.22) | (2.27) | (2.19) | (2.20) |
Marketing expenses 1 | (4.99) | (6.00) | (4.89) | (5.97) |
Operating netbacks | 38.83 | 44.58 | 36.59 | 49.00 |
Share information (millions) | ||||
Common shares outstanding, end of period | 606.2 | 610.6 | 606.2 | 610.6 |
Weighted average basic shares outstanding | 606.0 | 611.9 | 605.8 | 618.5 |
Weighted average diluted shares outstanding | 610.0 | 617.9 | 609.5 | 624.5 |
We are pleased to report Whitecap's strong third quarter operating results that have culminated with the achievement of our
Whitecap's third quarter production of 157,026 boe/d included 103,042 bbl/d of light oil, condensate and NGLs and 323,903 mcf/d of natural gas. We completed an active third quarter drilling program including the drilling of 76 (63.7 net) wells in our light oil weighted East Division and 13 (11.8 net) wells in our West Division with 100% success.
Funds flow of
Our full year 2023 guidance is for average production of 157,000 – 159,000 boe/d and capital spending of
We provide the following third quarter 2023 financial and operating highlights:
- Funds Flow. Whitecap's third quarter funds flow of
$466 million ($0.76 per share) benefitted from strong crude oil production and prices, with WTI in Canadian dollars averaging over$110 /bbl during the quarter. - Liquids Production Outperformance. Since re-allocating portions of our capital program earlier this year to higher netback oil weighted projects, our results have outperformed original expectations with third quarter oil and condensate production of 85,238 bbl/d. Our oil weighted assets across our East Division have continued to achieve strong results, contributing to higher liquids production and funds flow.
- Return of Capital Focus. Whitecap's third quarter dividends of
$0.15 per share totalled$88 million , with dividends and share repurchases under our NCIB for the nine months endedSeptember 30 th, 2023 totalling$296 million ($0.49 per share). - Balance Sheet Strength. Quarter end net debt of
$1.26 billion equated to a debt to EBITDA ratio of 0.6 times and an EBITDA to interest expense ratio5 of 26.2 times, both well within our debt covenants of not greater than 4.0 times and not less than 3.5 times, respectively. Our balance sheet is in excellent condition, with$3.1 billion of total capacity and a weighted average fixed interest rate of 3.3% on approximately$800 million of our total outstanding debt.
Whitecap's 2024 budget reflects our focus on long-term sustainability and profitability to drive increasing returns for shareholders. Our Board of Directors has approved a capital budget of
Our asset base is split into two divisions - East and West. Our East Division is primarily comprised of low decline/high netback light oil weighted assets that generate significant operating free funds flow. Our West Division has substantial high-quality liquids-rich inventory in the
We expect to allocate approximately
West Division
Driven by our extensive top tier unconventional inventory in the
Our 2024 unconventional drilling program is designed to run two rigs continuously throughout the year, with plans to spud 17 (15.2 net) unconventional
The majority of our unconventional
Our
During the third quarter, we also completed and brought on production 2 (2.0 net)
The extensive technical review we had undertaken prior to our initial
We most recently brought our next 4 (4.0 net)
East Division
Our 2024 capital program in the East Division is focused on long-term sustainability and free funds flow generation, with plans to drill approximately 215 (184.1 net) wells. The East Division has 3,562 (2,974 net) drilling locations across 500,000 (400,000 net) undeveloped acres, which we believe can support holding production flat at approximately 90,000 boe/d for the next 10 years, while generating significant free funds flow.
2024 development capital in the East Division will be focused on both short-cycle, high netback, light oil weighted Cardium,
In
In
For 2024, we plan to spend
Our Central Alberta Cardium and Glauconite programs have also benefited from greater use of extended lateral lengths and increased utilization of owned and operated infrastructure. Of the 29 (22.5 net) wells planned for
In 2024 we are expecting commodity prices to remain robust but volatile, given the macro environment. We believe that crude oil prices will remain strong due to continued growth in worldwide demand combined with limited production growth as a result of global underinvestment in our sector over the past several years. The incremental pipeline capacity that the
On the natural gas side, we look forward to the completion of LNG Canada in 2025, the country's first LNG project that, along with other recently announced projects, will provide additional market diversification for Canadian natural gas. These incremental projects will also advance
Our disciplined capital budget for 2024 is expected to generate
We look forward to the continued execution and profitable development of our strong asset base through 2024 and for many years to come. Our balanced portfolio of high-quality drilling opportunities supports our anticipated strong free funds flow generation and sustainable organic production growth to 200,000 boe/d by the end of 2027. Through technological advancements, efficiency improvements and acreage optimizations, our teams are constantly improving the long-term profitability of our remaining drilling inventory to support our targeted 3% – 8% organic production growth rate for at least the next 25 years.
On behalf of our employees, management team and Board of Directors, we would like to thank our shareholders for their support and look forward to the remainder of this year and an exciting 2024 and beyond.
NOTES
1 | Funds flow, funds flow basic ($/share), funds flow diluted ($/share) and net debt are capital management measures. Total payout ratio, average realized price and per boe disclosure figures are supplementary financial measures. Operating netback and free funds flow are non-GAAP financial measures. Operating netbacks ($/boe) and free funds flow diluted ($/share) are non-GAAP ratios. Refer to the Specified Financial Measures section in this press release for additional disclosure and assumptions. |
2 | Also referred to herein as "capital expenditures" and "capital spending". |
3 | Disclosure of production on a per boe basis in this press release consists of the constituent product types and their respective quantities disclosed herein. Refer to Barrel of Oil Equivalency and Production, Initial Production Rates and Product Type Information in this press release for additional disclosure. |
4 | Prior to the impact of risk management activities and tariffs. |
5 | Debt to EBITDA ratio and EBITDA to interest expense ratio are specified financial measures that are calculated in accordance with the financial covenants in our credit agreement. |
6 | Production per share is the Company's total crude oil, NGL and natural gas production volumes for the applicable period divided by the weighted average number of diluted shares outstanding for the applicable period. Production per share growth is determined in comparison to the applicable comparative period adjusted for acquisitions and dispositions. |
7 | Disclosure of drilling locations in this press release consists of proved, probable, and unbooked locations and their respective quantities on a gross and net basis as disclosed herein. Refer to Drilling Locations in this press release for additional disclosure. |
8 | Based on the following strip commodity pricing and exchange rate assumptions for the fourth quarter of 2023: |
CONFERENCE CALL AND WEBCAST
Whitecap has scheduled a conference call and webcast to begin promptly at
The conference call dial-in number is: 1-888-390-0605 or (587) 880-2175 or (416) 764-8609
A live webcast of the conference call will be accessible on Whitecap's website at www.wcap.ca by selecting "Investors", then "Presentations & Events". Shortly after the live webcast, an archived version will be available for approximately 14 days.
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", "continue", "trend", "sustain", "project", "expect", "forecast", "budget", "goal", "guidance", "plan", "objective", "strategy", "target", "intend", "estimate", "potential", 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, focus, objectives, priorities and position.
In particular, and without limiting the generality of the foregoing, this press release contains forward-looking information with respect to: our plan to return 75% of free funds flow back to shareholders through our base dividend and NCIB; our plan to bring on 5 (5.0 net)
The forward-looking information is based on certain key expectations and assumptions made by our management, including: that we will continue to conduct our operations in a manner consistent with past operations except as specifically noted herein (and for greater certainty, the forward-looking information contained herein excludes the potential impact of any acquisitions or dispositions that we may complete in the future); the general continuance or improvement in current industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; expectations and assumptions concerning prevailing and forecast commodity prices, exchange rates, interest rates, inflation rates, applicable royalty rates and tax laws, including the assumptions specifically set forth herein; that going forward the COVID-19, or any other, pandemic will not have a material impact on (i) the demand for crude oil, NGLs and natural gas, (ii) our supply chain, including our ability to obtain the equipment and services we require, and (iii) our ability to produce, transport and/or sell our crude oil, NGLs and natural gas; the ability of OPEC+ nations and other major producers of crude oil to adjust crude oil production levels and thereby manage world crude oil prices; the impact (and the duration thereof) of the ongoing military actions between
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 it involves inherent risks and uncertainties. These include, but are not limited to: the risk that the funds that we ultimately return to shareholders through dividends and/or share repurchases is less than currently anticipated and/or is delayed, whether due to the risks identified herein or otherwise; the risk that any of our material assumptions prove to be materially inaccurate, including our 2023 and 2024 forecasts (including for commodity prices and exchange rates); the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, including the risk that weather events such as wildfires, flooding or extreme hot or cold temperatures forces us to shut-in production or otherwise adversely affects our operations; pandemics and epidemics; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; risks associated with increasing costs, whether due to high inflation rates, high interest rates, supply chain disruptions or other factors; health, safety and environmental risks; commodity price and exchange rate fluctuations; interest rate fluctuations; inflation rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions; ability to access sufficient capital from internal and external sources on acceptable terms or at all; failure to obtain required regulatory and other approvals; reliance on third parties and pipeline systems; changes in legislation, including but not limited to tax laws, production curtailment, royalties and environmental regulations; the risk that we do not successfully defend against previously disclosed and ongoing reassessments received from the
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.sedarplus.ca).
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.
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about our forecast 2023 and 2024 capital expenditures, the percent of free funds flow to be returned to shareholders, the allocation of our 2024 capital expenditures to the West Division, East Division and New Energy initiatives, the allocation of our 2024 capital expenditures to facilities and infrastructure and EOR initiatives, our forecast for reaching total payout in 10 months for our recent 3 (3.0 net)
Barrel of Oil Equivalency
"Boe" means barrel of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ("Mcf") of natural gas to one barrel ("Bbl") of oil. Boe may be misleading, particularly if used in isolation. A Boe conversion rate of 1 Bbl : 6 Mcf 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 that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 Bbl : 6 Mcf, utilizing a conversion ratio of 1 Bbl : 6 Mcf may be misleading as an indication of value.
Drilling Locations
This press release discloses drilling inventory in two categories: (i) booked locations (proved and probable); and (ii) unbooked locations. Booked locations represent the summation of proved and probable locations, which are derived from
- Of the 3,562 (2,974 net) East Division drilling locations identified herein, 1,078 (917 net) are proved locations, 155 (123 net) are probable locations, and 2,329 (1,934 net) are unbooked locations.
- Of the 3,022 (2,701 net) West Division drilling locations identified herein, 362 (321 net) are proved locations, 154 (131 net) are probable locations, and 2,506 (2,249 net) are unbooked locations.
Unbooked locations consist of drilling locations that have been identified by management as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that we will drill all of these drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which we drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.
Production, Initial Production Rates & Product Type Information
References to petroleum, crude oil, natural gas liquids ("NGLs"), natural gas and average daily production in this press release refer to the light and medium crude oil, tight crude oil, conventional natural gas, shale gas and NGLs product types, as applicable, as defined in National Instrument 51-101 ("NI 51-101"), except as noted below.
NI 51-101 includes condensate within the NGLs product type. The Company has disclosed condensate as combined with crude oil and separately from other NGLs since the price of condensate as compared to other NGLs is currently significantly higher and the Company believes that this crude oil and condensate presentation provides a more accurate description of its operations and results therefrom. Crude oil therefore refers to light oil, medium oil, tight oil and condensate. NGLs refers to ethane, propane, butane and pentane combined. Natural gas refers to conventional natural gas and shale gas combined.
Any reference in this news release to initial production rates (current, IP(30), IP(90)) are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will continue production and decline thereafter. While encouraging, readers are cautioned not to place reliance on such rate in calculating the aggregate production for Whitecap.
The Company's average daily production for the three and nine months ended
Whitecap Corporate | Q3/2023 | Q3/2022 | YTD/2023 | YTD/2022 |
Light and medium oil (bbls/d) | 74,981 | 79,180 | 74,924 | 80,328 |
Tight oil (bbls/d) | 10,257 | 5,957 | 9,793 | 4,271 |
Crude oil (bbls/d) | 85,238 | 85,137 | 84,717 | 84,599 |
NGLs (bbls/d) | 17,804 | 16,513 | 16,640 | 14,863 |
Shale gas (Mcf/d) | 172,384 | 104,358 | 162,632 | 68,931 |
Conventional natural gas (Mcf/d) | 151,519 | 160,528 | 147,899 | 156,145 |
Natural gas (Mcf/d) | 323,903 | 264,886 | 310,531 | 225,076 |
Total (boe/d) | 157,026 | 145,798 | 153,112 | 136,975 |
Whitecap Corporate | 2024 Guidance ( | 2023 Guidance (Low-end) | ||
Light and medium oil (bbls/d) | 71,500 | 75,000 | ||
Tight oil (bbls/d) | 14,500 | 10,250 | ||
Crude oil (bbls/d) | 86,000 | 85,250 | ||
NGLs (bbls/d) | 18,000 | 17,250 | ||
Shale gas (Mcf/d) | 220,000 | 189,400 | ||
Conventional natural gas (Mcf/d) | 146,000 | 137,600 | ||
Natural gas (Mcf/d) | 366,000 | 327,000 | ||
Total (boe/d) | 165,000 | 157,000 |
Whitecap Initial Production Rates | Kakwa (IP(30)) | Berland (Over 30 – | Kaybob (IP(90)) | |
Light and medium oil (bbls/d) | - | - | - | |
Tight oil (bbls/d) | 330 | 540 | 420 | |
Crude oil (bbls/d) | 330 | 540 | 420 | |
NGLs (bbls/d) | 145 | 105 | 145 | |
Shale gas (Mcf/d) | 6,750 | 2,130 | 5,610 | |
Conventional natural gas (Mcf/d) | - | - | - | |
Natural gas (Mcf/d) | 6,750 | 2,130 | 5,610 | |
Total (boe/d) | 1,600 | 1,000 | 1,500 |
"Half-cycle payout" is calculated by the time period for the operating netback of a well to equate to the individual cost of the well. Management uses payout as a measure of capital efficiency of a well to make capital allocation decisions.
This term does not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Management uses oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare our operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.
This press release includes various specified financial measures, including non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as further described herein. These financial measures are not standardized financial measures under International Financial Reporting Standards ("IFRS" or, alternatively, "GAAP") and, therefore, may not be comparable with the calculation of similar financial measures disclosed by other companies.
"Average realized prices" for crude oil, NGLs and natural gas are supplementary financial measures calculated by dividing each of these components of petroleum and natural gas revenues, disclosed in Note 15 "Revenue" to the Company's unaudited interim consolidated financial statements for the three and nine months ended
"Free funds flow" is a non-GAAP financial measure calculated as funds flow less expenditures on property, plant and equipment ("PP&E"). Management believes that free funds flow provides a useful measure of Whitecap's ability to increase returns to shareholders and to grow the Company's business. Free funds flow is not a standardized financial measure under IFRS and, therefore, may not be comparable with the calculation of similar financial measures disclosed by other entities. The most directly comparable financial measure to free funds flow disclosed in the Company's primary financial statements is cash flow from operating activities. Refer to the "Cash Flow from Operating Activities, Funds Flow and Payout Ratios" section of our management's discussion and analysis for the three and nine months ended
Three months ended | Nine months ended | |||
($ millions) | 2023 | 2022 | 2023 | 2022 |
Cash flow from operating activities | 382.8 | 559.9 | 1,266.3 | 1,627.2 |
Net change in non-cash working capital items | 83.2 | (13.1) | 62.8 | 101.9 |
Funds flow | 466.0 | 546.8 | 1,329.1 | 1,729.1 |
Expenditures on PP&E | 281.9 | 208.0 | 753.3 | 507.5 |
Free funds flow | 184.1 | 338.8 | 575.8 | 1,221.6 |
Total payout ratio (%) | 79 | 50 | 76 | 39 |
Funds flow per share, basic | 0.77 | 0.89 | 2.19 | 2.80 |
Funds flow per share, diluted | 0.76 | 0.88 | 2.18 | 2.77 |
"Free funds flow ($/share)" is a non-GAAP ratio calculated by dividing free funds flow by the weighted average number of diluted shares outstanding for the relevant period. Free funds flow is a non-GAAP financial measure component of free funds flow ($/share). Free funds flow ($/share) is not a standardized financial measure under IFRS and therefore may not be comparable with the calculation of similar financial measures disclosed by other entities.
"Funds flow", "funds flow basic ($/share)" and "funds flow diluted ($/share)" are capital management measures and are key measures of operating performance as they demonstrate Whitecap's ability to generate the cash necessary to pay dividends, repay debt, make capital investments, and/or to repurchase common shares under the Company's normal course issuer bid. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds flow, funds flow basic ($/share) and funds flow diluted ($/share) provide useful measures of Whitecap's ability to generate cash that are not subject to short-term movements in non-cash operating working capital. Whitecap reports funds flow in total and on a per share basis (basic and diluted), which is calculated by dividing funds flow by the weighted average number of basic shares and weighted average number of diluted shares outstanding for the relevant period. See Note 5(e)(ii) "Capital Management – Funds Flow" in the Company's unaudited interim consolidated financial statements for the three and nine months ended September 30, 2023 for additional disclosures.
"Net Debt" is a capital management measure that management considers to be key to assessing the Company's liquidity. See Note 5(e)(i) "Capital Management – Net Debt and Total Capitalization" in the Company's unaudited interim consolidated financial statements for the three and nine months ended September 30, 2023 for additional disclosures. The following table reconciles the Company's long-term debt to net debt:
Net Debt ($ millions) | ||||
Long-term debt | 1,177.1 | 1,844.6 | ||
Accounts receivable | (452.3) | (480.2) | ||
Deposits and prepaid expenses | (44.9) | (22.7) | ||
Non-current deposits | (65.3) | - | ||
Accounts payable and accrued liabilities | 616.4 | 549.1 | ||
Dividends payable | 29.2 | 22.3 | ||
Net Debt | 1,260.2 | 1,913.1 |
"Operating netback" is a non-GAAP financial measure determined by adding marketing revenues and processing & other income, deducting realized losses on commodity risk management contracts or adding realized gains on commodity risk management contracts and deducting tariffs, royalties, operating expenses, transportation expenses and marketing expenses from petroleum and natural gas revenues. The most directly comparable financial measure to operating netback disclosed in the Company's primary financial statements is petroleum and natural gas sales. Operating netback is a measure used in operational and capital allocation decisions. Operating netback is not a standardized financial measure under IFRS and, therefore, may not be comparable with the calculation of similar financial measures disclosed by other entities. For further information, refer to the "Operating Netbacks" section of our management's discussion and analysis for the three and nine months ended
Three months ended | Nine months ended | |||
Operating Netbacks ($ millions) | 2023 | 2022 | 2023 | 2022 |
Petroleum and natural gas revenues | 955.9 | 1,070.5 | 2,637.5 | 3,336.4 |
Tariffs | (7.2) | (5.2) | (21.5) | (16.6) |
Processing & other income | 11.4 | 9.9 | 37.6 | 24.1 |
Marketing revenues | 72.8 | 80.9 | 205.3 | 225.0 |
Petroleum and natural gas sales | 1,032.9 | 1,156.0 | 2,858.9 | 3,568.8 |
Realized gain (loss) on commodity contracts | 0.6 | (29.5) | 21.6 | (223.6) |
Royalties | (166.6) | (218.5) | (455.5) | (657.6) |
Operating expenses | (201.8) | (199.2) | (599.9) | (550.0) |
Transportation expenses | (32.1) | (30.5) | (91.7) | (82.3) |
Marketing expenses | (72.1) | (80.5) | (204.3) | (223.3) |
Operating netbacks | 560.9 | 598.0 | 1,529.1 | 1,832.0 |
"Operating netback ($/boe)" is a non-GAAP ratio calculated by dividing operating netbacks by the total production for the period. Operating netback is a non-GAAP financial measure component of operating netback per boe. Operating netback per boe is not a standardized financial measure under IFRS and, therefore may not be comparable with the calculation of similar financial measures disclosed by other entities. Presenting operating netback on a per boe basis allows management to better analyze performance against prior periods on a comparable basis.
"Petroleum and natural gas revenues ($/boe)", "Tariffs ($/boe)", "Processing and other income ($/boe)" and "Marketing revenues ($/boe)" are supplementary financial measures calculated by dividing each of these components of petroleum and natural gas sales, disclosed in Note 15 "Revenue" to the Company's unaudited interim consolidated financial statements for the three and nine months ended
"Per boe" or "($/boe)" disclosures for petroleum and natural gas sales, royalties, operating expenses, transportation expenses and marketing expenses are supplementary financial measures that are calculated by dividing each of these respective GAAP measures by the Company's total production volumes for the period.
"Realized gain (loss) on commodity contracts ($/boe)" is a supplementary financial measure calculated by dividing realized gain (loss) on commodity contracts, disclosed in Note 5(d) "Financial Instruments and Risk Management – Market Risk" to the Company's unaudited interim consolidated financial statements for the three and nine months ended
"Total payout ratio" is a supplementary financial measure calculated as dividends declared plus expenditures on PP&E, divided by funds flow. Management believes that total payout ratio provides a useful measure of Whitecap's capital reinvestment and dividend policy, as a percentage of the amount of funds flow.
Per Share Amounts
Per share amounts noted in this press release are based on fully diluted shares outstanding unless noted otherwise.
SOURCE
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