Whitecap Resources

WCP-T

Analysis and Opinions about WCP-T

Signal
Opinion
Expert
BUY
BUY
May 20, 2020
He owns this one. It is up 16% today on a lack of sellers. They cut the dividend to a yield that is still 7-8%. Volumes will likely drop off in Q2, but are expected to spend more in Q4, depending on how the market reacts. The balance sheet is in good shape with $1.2 billion in debt. His rating is "A".
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He owns this one. It is up 16% today on a lack of sellers. They cut the dividend to a yield that is still 7-8%. Volumes will likely drop off in Q2, but are expected to spend more in Q4, depending on how the market reacts. The balance sheet is in good shape with $1.2 billion in debt. His rating is "A".
BUY
BUY
May 15, 2020
A high quality way to play a bullish oil play. Q2 earnings are going to be bad, but it depends on what the balance of the year and 2021 holds. They have a modest decline rate, which reduces the capex required. He thinks the dividend is sustainable around $35 oil prices. He was buying it yesterday. Yield 9.5%
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A high quality way to play a bullish oil play. Q2 earnings are going to be bad, but it depends on what the balance of the year and 2021 holds. They have a modest decline rate, which reduces the capex required. He thinks the dividend is sustainable around $35 oil prices. He was buying it yesterday. Yield 9.5%
SELL
SELL
April 9, 2020
He would consider selling it as it is not profitable at current oil prices. It is not as heavily indebted as others but owning a non-integrated is a wing and a prayer on a bail out by the Alberta government.
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He would consider selling it as it is not profitable at current oil prices. It is not as heavily indebted as others but owning a non-integrated is a wing and a prayer on a bail out by the Alberta government.
TOP PICK
TOP PICK
March 24, 2020
It's his oil play. It's trading at half its cash flow. They announced a spending cut and halved their dividend recently. They are paying down debt, but still serving that dividend. He's been adding to his position recently. This will definitely survive.
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It's his oil play. It's trading at half its cash flow. They announced a spending cut and halved their dividend recently. They are paying down debt, but still serving that dividend. He's been adding to his position recently. This will definitely survive.
HOLD
HOLD
March 4, 2020
Dividend safe? He thinks the dividend is safe as long as oil prices are above $40. He does not own this one. Their problem is how do they attract the capital to make them grow? He could see a scenario where US shale production is capped and money returns back to Canada for investment by international investors.
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Dividend safe? He thinks the dividend is safe as long as oil prices are above $40. He does not own this one. Their problem is how do they attract the capital to make them grow? He could see a scenario where US shale production is capped and money returns back to Canada for investment by international investors.
COMMENT
COMMENT
February 12, 2020

TOG vs ARX vs WCP? He favours TOG and WCP over ARX presently. TOG has a 7.7% yield and trades only at 6% above the blow down value of their existing wells and has a strong balance sheet.

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Whitecap Resources (WCP-T)
February 12, 2020

TOG vs ARX vs WCP? He favours TOG and WCP over ARX presently. TOG has a 7.7% yield and trades only at 6% above the blow down value of their existing wells and has a strong balance sheet.

BUY
BUY
January 24, 2020
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%
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Whitecap Resources (WCP-T)
January 24, 2020
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
TOP PICK
January 17, 2020
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)
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Whitecap Resources (WCP-T)
January 17, 2020
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 WEAKNESS
BUY WEAKNESS
January 10, 2020

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).

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Whitecap Resources (WCP-T)
January 10, 2020

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
BUY
December 19, 2019
Dividend sustainability is at about $48 for all energy companies. They could pay a 6.8% dividend while keeping production flat, theoretically.
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Whitecap Resources (WCP-T)
December 19, 2019
Dividend sustainability is at about $48 for all energy companies. They could pay a 6.8% dividend while keeping production flat, theoretically.
COMMENT
COMMENT
December 4, 2019
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.
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Whitecap Resources (WCP-T)
December 4, 2019
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
PAST TOP PICK
November 21, 2019
(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.
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Whitecap Resources (WCP-T)
November 21, 2019
(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
TOP PICK
November 15, 2019
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)
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Whitecap Resources (WCP-T)
November 15, 2019
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
COMMENT
November 6, 2019
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.
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Whitecap Resources (WCP-T)
November 6, 2019
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
DON'T BUY
October 15, 2019
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.
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Whitecap Resources (WCP-T)
October 15, 2019
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
HOLD
October 11, 2019
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%
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Whitecap Resources (WCP-T)
October 11, 2019
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
BUY
October 11, 2019

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.

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Whitecap Resources (WCP-T)
October 11, 2019

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 WEAKNESS
BUY WEAKNESS
October 10, 2019
They pay a good dividend. Low debt so he thinks the stock is quite cheap. Volume should increase by Q1.
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Whitecap Resources (WCP-T)
October 10, 2019
They pay a good dividend. Low debt so he thinks the stock is quite cheap. Volume should increase by Q1.
DON'T BUY
DON'T BUY
September 25, 2019

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.

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Whitecap Resources (WCP-T)
September 25, 2019

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
HOLD
September 20, 2019
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%
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Whitecap Resources (WCP-T)
September 20, 2019
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
PARTIAL SELL
September 19, 2019
Not one of his favourites in the oil and gas space in Canada. See Top Picks today.
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Whitecap Resources (WCP-T)
September 19, 2019
Not one of his favourites in the oil and gas space in Canada. See Top Picks today.
COMMENT
COMMENT
September 19, 2019
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.
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Whitecap Resources (WCP-T)
September 19, 2019
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
BUY
September 16, 2019
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.
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Whitecap Resources (WCP-T)
September 16, 2019
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
TOP PICK
September 13, 2019
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)
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Whitecap Resources (WCP-T)
September 13, 2019
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
BUY
August 30, 2019
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.
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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
COMMENT
August 27, 2019
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%
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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
BUY
August 27, 2019
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.
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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 WEAKNESS
BUY WEAKNESS
July 25, 2019
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%.
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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
BUY
July 19, 2019
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.
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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
HOLD
July 17, 2019
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.
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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.
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Whitecap Resources(WCP-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 15

Neutral - Hold Signals / Votes : 4

Bearish - Sell Signals / Votes : 4

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. 15 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is BUY. 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 Josef Schachter on 2020-05-20. 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 2020-05-29, Whitecap Resources (WCP-T) stock closed at a price of $2.03.