Whitecap Resources raises 2021 production target as it completes two takeovers

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CALGARY — Oil and gas producer Whitecap Resources Inc. says “exceptional” operating performance in the first quarter as it completed the takeover of two Calgary rivals is allowing it to increase its 2021 production and cash flow guidance without raising its capital spending plan.

The Calgary-based company says its first quarter average production is expected to be between 94,000 and 95,000 barrels of oil equivalent per day, up four per cent from its prior forecast, thanks largely to better than expected results from new wells and enhanced oil recovery operations in Saskatchewan.

It says it now expects 2021 production will average between 102,000 and 103,000 boe/d, up from the previous estimate of 100,000 boe/d, allowing between $16 million and $24 million of additional free funds flow based on US$60 per barrel benchmark oil prices and C$2.50 per gigajoule Alberta natural gas prices.

It says its full year capital budget of between $280 and $300 million is unchanged.

Whitecap says the integration of NAL Resources Ltd. and TORC Oil & Gas Ltd. has been “seamless” after share-swap takeovers closed in January and February.

The company halved its capital spending in 2020 to $196 million because of low oil prices and posted a full-year $1.8-billion net loss with average production of nearly 69,000 boe/d.