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TSE:WCP

Whitecap Resources (WCP.TO)

16.34
-0.30 (1.80%)
as of Jun 12, 2026, 7:59:59 pm Market Open.
988 watching
0
Investor Insights
star iconJun 11, 2026, 12:00 am

This summary was created by AI, based on 39 opinions in the last 12 months.

Whitecap Resources (WCP-T) is widely viewed as a well-managed company with strong assets, particularly in the Montney and Duvernay regions. Experts note its impressive cash flows and consistent dividend yield, making it an attractive option for income-focused investors. The recent acquisition of Veren (VRN) has significantly increased its market cap and production capabilities, positioning it as an appealing choice for both growth and dividend-seeking shareholders. Although some analysts suggest caution due to fluctuating oil prices, many remain optimistic about the stock's potential upside and its ability to deliver sustainable returns. Analysts' price targets vary, but there is a general sentiment of value and growth potential based on the company's fundamentals and recent operational advancements.

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Consensus
Positive
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Valuation
Undervalued
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CNQ
PARTIAL SELL
Not one of his favourites in the oil and gas space in Canada. See Top Picks today.
COMMENT
A decent little energy producer that still pays a dividend. He puts it in the top half of the mid-cap group. An okay company, dividend and growth. It's okay.
BUY
He likes it and owns it. The dividend is secure. Next year he thinks we will have $70 oil or more. You want to own this stock going forward. If it backs off to the $4's it will be a table pounding buy. His target is $7 one year and $20 in 3 to 5 years.
TOP PICK
A company generating great free cash flow. The dividend is attractive. A great time to get into the space and this is a good company. Yield 7.86% (Analysts’ price target is $7.28)
BUY
Historically, paying 9-10% yields is nuts, but in this environment that is sustainable, including for WCP. They can still generate a free cash flow yield of 5% and so, in fact, raise their dividend. He really likes and owns a lot of WCP. U.S. funds will eventually flow back into Canadian mid-cap oil stocks when they realize that shale growth is not as expected. WCP trades at 78% of its liquidation value. The only knock here is they're reluctant to buyback shares (he'll meet with the CEO soon to discuss this). He strongly suggests that Canadian oil companies buyback shares to encourage investors.
COMMENT
Dividend sustainable? Normally a high yield like this is a red flag. The company has cut back on capex recognizing that replacing production is the goal. He feels the dividend should be sustainable. Eventually these holdings will thrive again. The caveat being the need to avoid a major global recession. Yield 10%
BUY
He has sold his oil stocks down to below 4% of his portfolio. This is one of them. WCP today announced it will slash its development capex by $50 million down to $400 million. A solid balance sheet of 1.4x debt to EBITDA. Pays a 9% dividend and has very good prospects. A safe dividend. It's one of his few oil stocks, but the whole oil space is under fire.
BUY ON WEAKNESS
Q2 will be slightly lower than Q1. Tremendous buy under $4. Likes the company, management, and assets. Payout ratio is sustainable. Dividend is very secure. Yield is 8.1%.
BUY
WCP is trading at a high 18% free cash flow. He's advocated to the CEO to do share buybacks. They check off all the boxes. They pay a healthy, sustainable yield of 8%. He likes it and owns a fair bit. In Calgary, oil companies are widely talking about what to do with their free cash flow, perhaps buyback shares.
HOLD
A darling four years ago, that is oil weighted. The took criticism for the last few acquisitions. He still considers it a core holding and sees a 5% growth outlook along with a 5% yield.
BUY
He loves it. 84% liquids and trading at a significant discount to book. 8% dividend paid monthly. His target is $7 in 12 months. By the time we get to next winter we could get above $76 for oil. Oil-based companies should be able to raise their dividends. He would take advantage of this one and own it.
BUY
One of the few Canadian companies he likes. Because they don't produce in Canada, they benefit from higher Brent prices. Differential is getting even wider.
PAST TOP PICK
(A Top Pick Dec 17/18, Up 16%) During the third week of April this was trading towards $6. Yield is about 7% right now.
HOLD
He thinks $62 WTI may be pretty balanced here. Whitecap raised their dividend. He thinks they have run a tight ship and they are generating good cash flow.
HOLD
In the long run he admires their management and assets. He would hold this long term and current valuation is competitive in the peer space. He does not own it today. Yield 6.3%.
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