Related posts

Nvidia triggers tech, market highsTech earnings lead market declineOil surges to lift TSX
Investor Insights

This summary was created by AI, based on 27 opinions in the last 12 months.

Whitecap Resources (WCP-T) is a mid-cap energy company that has a strong focus on shareholder value. The company has shown decent cost control in its recent quarter, with a solid balance sheet and a net debt/EBITDA of only around 0.6x. There are mixed opinions on the company's recent moves such as aggressive debt reduction and acquisitions, but overall, the company is seen as a good long-term investment with a stable dividend yield. Some experts believe there is potential for the stock price to go up if oil prices increase, while others are cautious and unsure about the safety of the dividend. Overall, the company is well-positioned to benefit from a recovery in energy prices and is considered a good buy for long-term investors.

Consensus
Mixed
Valuation
Fair Value
TRADE
Whitecap Resources

Is bullish oil. It's a trading stock. will sell at $11-12. Pays a fat dividend. They focus on shareholder value.

Oil and Gas (Integrated Oils)
BUY
Whitecap Resources
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

WCP is an energy company that is now trading at 6.0x times' Forward P/E. In the 4Q, WCP’s revenue declined 18% to $914M, compared to the same period last year of $1.16B and EPS is $0.49 compared to last year of $0.52, indicating decent cost control. Daily production remains largely unchanged at 166,500 BOE/day. Forecast for 2024 is for production 165,000 to 170,000. The balance sheet is solid, net debt went down from $1.9B to $1.4B, and the net debt/EBITDA is only around 0.6x. The company does have a decent capital return policy the current yield is quite attractive (8% dividend yield and 2% from buyback). Overall, a very decent quarter despite headwind from commodity prices.
Unlock Premium - Try 5i Free

Oil and Gas (Integrated Oils)
PAST TOP PICK
Whitecap Resources
(A Top Pick Jan 25/23, Down 15%)

Investors not happy with 2022 XTO acquisition. Ratio b/w liquids rich and natural gas not favorable. Questions around sustainability of dividend. Personally, thinks dividends are safe with a large margin of safety. Capital plans can be deferred if required. Oil prices starting to recover. Will continue to hold. 

Oil and Gas (Integrated Oils)
COMMENT
Whitecap Resources

It is in light oil and has done some acquisitions so the debt levels are higher now. Has a high dividend yield. She prefers Freehold and it comes without the exploration risk along with almost a 7% yield.

Oil and Gas (Integrated Oils)
HOLD
Whitecap Resources

Not positive on recent moves by company - paying down too much debt. Would rather the company had reinvested cash into earnings growth rather than debt reduction. Also not a fan of dividends due to withholding tax. Would rather cash used on buybacks or earnings growth. Will continue to own shares. 

Oil and Gas (Integrated Oils)
HOLD
Whitecap Resources
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

WCP cut its dividend in 2016 and 2020, but in recent years it has not. Cash from operations is highly positive at $1.822B in the last-twelve-months along with a solid balance sheet which makes us believe that the dividend is probably secure, barring a collapse in commodity prices. . The nine month payout ratio was 76%. 
Unlock Premium - Try 5i Free

Oil and Gas (Integrated Oils)
BUY
Whitecap Resources
Sell AQN for tax loss, where to put proceeds?

Mid-cap energy stocks have been strong, even with reduced fund flows from pension and ESG funds. WCP and ARX will continue to do well.

Never sell just for tax reasons. Whenever he's done this, it's been a mistake. Instead, ask yourself if your thesis still holds for owning the stock? If yes, hold on. If not, let it go.

Oil and Gas (Integrated Oils)
BUY
Whitecap Resources

Excellent business that owns large amount of shares in. Excellent management team. Safe dividend. Plan from recent M&A has been executed flawlessly. Low cost producer allows $55 WTI price floor. Expecting company to continue buying back stock and increasing dividend. Would recommend buying. 

Oil and Gas (Integrated Oils)
BUY
Whitecap Resources
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We do not see any company specific news regarding WCP since its results in October but there have been some modest target price cuts since then. WCP continues to be a consistent monthly dividend payer and will move with energy prices in the short-term. The shares are cheap, yield is high and is starting to pay debt back down which is nice to see.
Unlock Premium - Try 5i Free

Oil and Gas (Integrated Oils)
BUY
Whitecap Resources

Fine company. Firing on all cylinders, though impacted by weak energy prices. Can't go wrong with this.

Oil and Gas (Integrated Oils)
HOLD
Whitecap Resources

Slight premium to other names. Overhang is its promise for M&A activity, likely to happen in 2024. 40-50% potential upside from here with $80 oil. Yield is 7.6%.

Oil and Gas (Integrated Oils)
DON'T BUY
Whitecap Resources
Why the weakness in recent months?

Aren't as shareholder-friendly as its peers, like buying back shares and paying down debt. Instead, WCP has been buying businesses for long-term growth. The market prefers higher dividends and buybacks. He isn't buying any oil stocks now.

Oil and Gas (Integrated Oils)
BUY ON WEAKNESS
Whitecap Resources

Recent Q3 results mediocre. Share price has been weak due to results. Trading at premium to sector peers. Owns shares in company. Strong management team. Would buy more shares if price falls. Expecting a ~$14 share price given $80 oil price. 

Oil and Gas (Integrated Oils)
BUY
Whitecap Resources
Sell ARX to buy WCP?

Prodigious free cashflow being used to aggressively pay down debt. All while maintaining capital investments and treating shareholders fairly well. A good buy for a 2-3 year hold. He wouldn't sacrifice ARX shares to fund the purchase.

Oil and Gas (Integrated Oils)
HOLD
Whitecap Resources

Population growth Canada does affect energy stocks too much. Global demand more important for energy prices. China weakness in real estate a concern. Potential for recession also a concern. Expecting $70-$90 price going forward. Does not own shares in company. Hard to predict future of company. 

Oil and Gas (Integrated Oils)
Showing 1 to 15 of 396 entries

Whitecap Resources(WCP-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 18

Neutral - Hold Signals / Votes : 4

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 23

Stockchase rating for Whitecap Resources is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Whitecap Resources(WCP-T) Frequently Asked Questions

What is Whitecap Resources stock symbol?

Whitecap Resources is a Canadian stock, trading under the symbol WCP-T on the Toronto Stock Exchange (WCP-CT). It is usually referred to as TSX:WCP or WCP-T

Is Whitecap Resources a buy or a sell?

In the last year, 23 stock analysts published opinions about WCP-T. 18 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Whitecap Resources.

Is Whitecap Resources a good investment or a top pick?

Whitecap Resources was recommended as a Top Pick by on . Read the latest stock experts ratings for Whitecap Resources.

Why is Whitecap Resources stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Whitecap Resources worth watching?

23 stock analysts on Stockchase covered Whitecap Resources In the last year. It is a trending stock that is worth watching.

What is Whitecap Resources stock price?

On 2024-03-28, Whitecap Resources (WCP-T) stock closed at a price of $10.245.