Q: What are your thoughts about Whitecap’s earnings?
Dividend fully funded at $50 WTI?
Dividend fully funded at $50 WTI?
5i Research Answer:
Production of 179,051 b/d rose 5.5% and beat estimates of 174,000. Crude production rose 5.6%; NG liquids production rose 14%; gas production rose 2.7%. EPS of 27c did miss estimates of 39c; Revenue of $942M beat estimates of $876M. Guidance will be provided when the VRN merger closes. Even though they missed estimates, per share earnings still more than doubled. Payout ratio (12 months) is less than 25%. The dividend looks secure even with a drop in commodity prices.