Whitecap Resources (WCP.TO) Buy, Sell or Hold

Whitecap Resources (WCP.TO)

18.69

+0.18 (0.97%)

as of Oct 9, 2026, 8:00:00 pm Market Open.

998 watching

BUY

He owns this one. The company has 84% liquids and producing over 68,000 boed. He has a target price of over $7.00. A very attractive buy. Yield 6.8%

TOP PICK

A high quality mid to small-large energy producer. Trades below book value and at 9 times cash flow. A reasonable pick in the energy space. Yield 6.51% (Analysts’ price target is $6.97)

BUY ON WEAKNESS

Oil Oil is tricky. It's a broken market that may or may not be coming back. Some have returned to gold too early. Over the decades, oil has risen and fallen largely due to spin (i.e. Peak Oil). He picks up a little oil when the stocks get cheap. Oil is a messy space. Of the juniors, WCP is his favourite. SU-T is the senior one he likes. But he really likes Advantage (but they deal in natural gas, not oil).

BUY

Dividend sustainability is at about $48 for all energy companies. They could pay a 6.8% dividend while keeping production flat, theoretically.

COMMENT

Energy bottoms this time of year, tax-loss season. Dec. 26-May 24 is seasonality for WCP. Technically, it looks encouraging, with a double bottom. It's approaching the 200-day moving average of $4.30; if it breaks above this, WCP can have runway ahead. However, there's still five days of excess oil supply in the States. A production cut would be a catalyst, but there remains excessive inventory of world oil. Seasonality: good. Fundamentals: unknown.

PAST TOP PICK

(A Top Pick Dec 17/18, Up 5%) He has a $7 target in a $70 oil price environment. A nice dividend. These stocks are so cheap. Walking away from these names is ridiculous. Buy during tax loss season.

TOP PICK

A high yield that is sustainable down to $49 oil. There is still good upside on valuation metrics. They have modest decline rates. He likes how they buy back their own shares. It is trading at 85% of its reserve blow down value. Yield 8.26% (Analysts’ price target is $6.55)

COMMENT

Politically we threw fuel on the fire in a weak commodity market. You have to be positive on the forward energy price to like anything. SU is a safer bet than WCP as they can make money at current prices. He is not sure WCP will be able to benefit. He expects more consolidation of smaller players in this space going forward.

DON'T BUY

The high dividend yield won't last. $5.10 is his model price. Their balance sheet is impaired (similar to many Canadian oil companies). They need to do some write-offs to bolster the balance sheet. The fundamentals aren't here, and an NDP-Liberal win next week won't help.

HOLD

It is very inexpensive right now. He thinks the distribution is sustainable down to about $50-$55 WTI prices. The stock has been weak based on comments from the CEO, who said that banks may less inclined to increase lending to energy, especially natural gas companies. This may cause companies to jettison assets to keep debt down. The CEO is hoping this will provide some cheap assets they can acquire. He would prefer the company buy its own stock, that is greatly discounted to its book value. He owns it personally for the dividend. Yield 8.9%

BUY

Good energy dividend payers? For a five year time period, there are a few 9% dividend payers which are safe, he thinks. He would suggest ARX-T (11% yield), WCP-T, and TOG-T (each yielding around 9%). He thinks the dividends are safe to $50 WTI. These stocks are just so undervalued and have enormous upside if investment comes back.

BUY ON WEAKNESS

They pay a good dividend. Low debt so he thinks the stock is quite cheap. Volume should increase by Q1.

DON'T BUY

Management has done a good job in this light oil producer (WCP-T). If the economy slows, oil prices would fall and that could threaten the yield further. He has a negative view on all resources right now. He only owns pipelines like ENB-T.

HOLD

A Western Canadian light oil producer. A well run company. The dividend is safe, he thinks. If you like energy at all, this would be one of his favorites. You could easily see $7 per share again -- a 45% gain potential, including the dividend. The balance sheet is also pretty good. The pipeline situation in Western Canada needs to be resolved. Yield 7%

PARTIAL SELL

Not one of his favourites in the oil and gas space in Canada. See Top Picks today.

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Whitecap Resources (WCP.TO)