Whitecap had revenues of $433M in Q2/18 on production of 75,813 boe/d (85% liquids). Funds flow was $196M or $0.47 per share. This was a nice lift from Q1/18 at $368M of revenues and $251M in Q2/17. Funds flow in Q1/18 was $166M and in Q2/17 $122M.
Operating expenses rose to $11.29/boe from $10.64/boe as a result of the acquisitions in Saskatchewan, however these are pretty decent numbers for an oil producing entity.
Operating netbacks in Q2/18 were $31.75/boe up from $26.95 in Q2/17 due to the improved commodity price environment.
Capex in Q2/18 was $66M, up modestly from $64.5M in Q2/17. Note this compares to funds flow of $196M, therefore generating significant free cash flow of $97.5M. The total capex budget for 2018 is $450M (Chart #8).
WCP used the excess to pay down debt ($91M in Q2/18), increase its dividend and for a NCIB (normal course issuer bid) to buy back stock. In Q2/18 it bought back 635K shares at $8.85 per share and for the first half bought back 1.945M shares at an average cost of $8.78. The total spend on buybacks for the first half of 2018 was $17.1M. WCP will show good growth in 2018 while generating funds to pay a rising dividend (Chart #9).