Opinions Michael Sprung
Whitecap ResourcesWCP.TOCOMMENTFeb 01, 2017
Stock price when the opinion was issued
As of Oct 30, 2026. Market Open.
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Loves it. It's going up. Definite uptrend since early 2025, but he's a little worried about oil now, because it's getting parabolic. There's nothing wrong with the stock, but he may take some profits.
Keith Richards
The caller wondered about taking profits in this company. You could take a pause for a gas related stock but WCP is still very strong with a lot of production over a diverse number of regions. He would sell half and take profits, but keep half. He thinks that oil stays at $100 per barrel for the rest of the year.
Would name it top pick again. Based on $70 WTI, WCP has 20% upside to $22.50; at $80, it's $26. He wouldn't be surprised if WCP was bought out. WCP has a super inventory in the Montney and Duvernay and at least 17 years of stay-flat inventory. The CEO always buys shares on weakness, strong balance sheet and pays a dividend of 4%. Modest growth.
Eric NuttallAfter consolidating this year, it has broken out. A pullback is possible, but an opportunity. He likes it for the long term.
Keith RichardsIt is a mid-cap oil stock and their largest holding. It is one of the most misunderstood companies and is cheap without reason. Management has done an awesome job in its operations and it has beaten expectations in many quarters. It has well over 2 decades of very high quality inventory. US companies are eyeing Canadian companies Whitecap has 5.3 times cash flow and he sees a 40 % upside. Pays a dividend.
Eric Nuttall
27% gas, the rest is oil. Now the 5th largest oil producer in Canada. Market cap of $20B. Extremely well run. Lots of contiguous land, long reserve life. Probably one of the strongest takeout candidates. Trades ~5x cashflow, with considerable upside.
With ARX being taken out, more institutions will be interested. Yield is 4.6%.
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Premium contentWCP boils down whether you expect the US-Iran war will continue or end soon. Unfortunately, we expect it to drag on, given the pattern of ceasefire-fighting-ceasefire. The fact is Iran controls the Strait of Hormuz and the flow of crude oil. Trump can do little to change that except threaten. Even if the war completely stopped in August, sweeping the strait of mines could take six month and returning to normal shipping volumes could take 18 months or more. All this puts oil companies in the driver's seat as crude oil prices will not return to sub-$60, pre-war levels and likely will fall no lower than $70, as we saw a month ago.
Whitecap Resources (WCP-T) or Crescent Point (CPG-T)? Two different types of companies. This is more of a growth company paying a dividend, while Crescent Point is much more mature. It pays a fairly good dividend. This caught his attention lately and he has begun to look at. Very good balance sheet. They have capacity to bring on another $1.3 billion in debt. People are forecasting this is going to grow from 46,000 barrels a day, to something like 57,000. If you want more potential growth, this is probably not a bad way to go. Pays a very generous dividend.