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Investor Insights

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

Whitecap Resources (WCP) appears to be entering a challenging phase, with recent declines raising concerns about its future performance—particularly in light of natural gas price volatility. However, many analysts recognize the potential value of WCP, especially after its planned merger with Verenex Energy (VRN), which could lead to significant synergies and cost savings. The company boasts an attractive dividend yield of approximately 7.8% with a strong payout ratio, and its low P/E ratio relative to peers adds to its appeal. Despite being well-managed, WCP's portfolio primarily comprises light oil assets, which may require continuous drilling to maintain production levels. Nevertheless, the consensus reflects optimism around its long-term prospects should oil prices recover, indicating that now might be a strategic time to invest for potential upside.

Consensus
Positive
Valuation
Undervalued
WAIT

Broke below the March low, an indication that it's going lower. Barring a dramatic reversal in the price of natural gas, which it's tilted more towards, it's probing lower. Going back on a 3-year chart, no place to hang your hat yet.

Lots of damage in last 2 days. There's a lot of value there, but you have to wait to see where to step in. All of energy will be wait and see.

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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

WCP has a book value yield of 104.9% and an earnings yield of 12.8%, both good, while it pays a 7.8% dividend yield based on a decent 53.65% payout ratio, and trades at a low 6.88x PE. Compare that to CNQ's 15.33x and Suncor's 11.6x. The street likes the deal, giving WCP an average price target of $13.36, or 42% higher, based on six buys and one hold. Obviously, the street gives the merger a thumbs up, with three analysts assigning an average price target of $13.00, including one upgrade.

WEAK BUY
WCP & VRN

Merger could be really accretive, better together. Nice dividend. Scale could really help them both. He hasn't yet seen the terms of the deal.

BUY

He likes the WCP-Veren deal. Both were already decent companies, but together will enjoy synergy from cost savings. It will become the 4th-largest light oil producer in Canada. Management knows what it's doing, valuation good. Bigger companies here tend to enjoy a multiple increase. Veren shareholder will receive the WCP dividend, a big increase for them. The combined company will do pretty well.

BUY

Top mid-cap name, high dividend yield, aggressive product growth. Ramping up production, which will offer strong FCF. But capital spending is rising as a result. Scores 10/10 on value, 8/10 on fundamentals. Analysts seeing potential upside of 47%. Healthy dividend of ~8%.

COMMENT
With the merger, good time to get in?

M&A activity is not his sweet spot. When Eric Nuttall's on next, ask him; he can unlock the growth story for you. Larry's much more of a trader.

BUY

Has looked at this for a long time. Started a new position due to selloff on the merger with VRN. Really likes Canadian oil & gas long term, tariffs notwithstanding. 

Fly in the ointment is our new prime minister, Mr. Carney, who continues to be anti-oil and -gas. Paradoxical to him, given Canada's absolutely superb endowment of oil & gas resources and related technology. Perplexing that political leadership of Canada doesn't understand the energy patch business case when we have lots to sell to lots of willing partners.

WATCH

Here, he can look at support on the chart and know that it's real because we know about tariffs and the merger with VRN. He needs a bounce off support; if it doesn't bounce, and goes below support, then you have a problem and don't want to own. If it does bounce, then you have a target of between $11-12.

Concerns about tariffs are already built into the price, and that's why it's down.

BUY ON WEAKNESS

Owns shares personally. Excellent company with very strong management team. Very good assets with safe dividend. Capital discipline within the sector has been very strong. 

BUY

Loves these energy names at this point in the cycle. Yield of 7-8%.

DON'T BUY
WCP vs. TVE vs. VRN -- looking for best total return from capital appreciation plus dividends.

If you assume oil prices go up, and assume they all execute well, which is the buy right now? He likes the upfront dividend. VRN is cheapest on price and financial metrics. Production outlook posted a few days ago is quite positive.

Not sure if the easiest thesis is to buy energy right now with Trump trying to attack the price of oil. But within the group, VRN is a name that works pretty well.

BUY

A big fan of management. A top energy company in Canada. Unlike peers, this doesn't need much higher oil prices to maintain its financial heft or dividend. Lots of downside protection. Oil and gas is in seasonal strength now. Pays a good 6.9% dividend.

HOLD

Good management team has done a good job managing current assets. But assets are mainly light oil with a high decline rate, so they have to keep drilling to keep up. Prefers longer reserve life and lower decline rate. Excellent job with oil recovery. Dividend safe at current oil prices. Too risky for her clients, but if you're OK with that keep holding.

See her Top Picks.

(Analysts’ price target is $13.40)
HOLD

Pretty balanced between oil and natural gas. Really well run, paid down debt. Good opportunities to do tuck-in acquisitions in Western Canada. Because of new pipeline that's come on, benefited from narrowing of WTI-WCS spread. Production grows ~5% a year. More torque than the bigger players. Very nice 7% yield.

BUY

Good, diversified portfolio of light-oil properties, which are always in demand. Great positions in Alberta and elsewhere. Fairly good last quarter. Well managed, consistent. Good dividend, with a good chance that it can expand. Fairly inexpensive relative to some others.

Showing 1 to 15 of 424 entries

Whitecap Resources(WCP-T) Rating

Ranking : 5 out of 5

Star iconStar iconStar iconStar iconStar icon

Bullish - Buy Signals / Votes : 13

Neutral - Hold Signals / Votes : 5

Bearish - Sell Signals / Votes : 5

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. 13 analysts recommended to BUY the stock. 5 analysts 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 2025-04-11, Whitecap Resources (WCP-T) stock closed at a price of $7.7.