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

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%.

COMMENT

Is the dividend safe? The dividend is safe, unless oil prices plunge and stay below $50. All oil stocks are beaten down. He doesn't like their asset base or well-abandonment liability (wells they leave behind) that may or may not hurt them decades in the future depending on the government. That said, companies like WCP use their wells for a long time and re-purpose them. You could wait it out and collect the 5.9% dividend though.

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Whitecap Resources (WCP.TO)