Whitecap Resources Inc.

Good morning, my name is Joanna and I will be your conference operator today. At this time, I would like to welcome everyone to Whitecap Resources Q1 2025 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star, then the number two. I would now like to turn it over to Whitecap's President and CEO, Mr. Grant Fagerheim. You may begin your conference call.

Thanks very much, Joanna. I appreciate that. Good morning, everyone, and thank you for joining us. There are four members of our management team here with me today. Our Senior Vice President and CFO, Ton Kang. Our Senior Vice President, Business Development and Information Technology, Dave Marmerkett. Our Senior Vice President, Production and Operations, Joel Armstrong. our Vice President of the West Division, Joey Wong, and our Vice President of the East Division, Chris Bullen. Actually, there's five members of our team with us today. Before we get started today, I would like to remind everybody that all statements made by the company during this call are subject to the same forward-looking disclaimer and advisory that we set forth in our news release issued yesterday afternoon. The momentum that brought us success in 2024 has continued into the first part of 2025 with excellent first-quarter operational and financial results. We are very pleased with the strong asset level performance along with the team's execution of a very active 14 rig 86 well first quarter drilling program. 2025 has started off on the right foot and we expect to have strong performance to continue through the year. First quarter production of 179,151 BUE per day was over 6,000 BUE per day above our internal forecast of 173,000 BUE per day. as production from newer wells was higher than expectations, particularly in our Montney, Duvernay, and Glauconite assets leading the way. In addition, our base production continues to outperform our expected tight curve projection over the longer term. Joey and Chris will provide additional details on production outperformance. With respect to the pending combination with Barron that is announced on March the 10th, a joint information circular has been filed and shareholder votes are scheduled for May 6th. We have already received Competition Bureau approval and the transaction is expected to close on May 12th. At that time or shortly thereafter, we will issue updated 2025 guidance for the combined company. We are very much looking forward to combining these outstanding assets and teams together to create a leading light oil, condensate and natural gas producer focused on improving long-term sustainability and profitability to drive superior returns to our shareholders. Our strategic priorities as we continue through the current commodity price and market volatility remain unchanged with the focus on balance sheet management and capital discipline. Our management team has been through multiple cycles, most recently through the pandemic environment in 2020 as well as in 2015-16 time period and utilizing both periods of market dislocation to help transform to the company it is today. Maintaining balance sheet strength is a top priority which will allow us to navigate through the current uncertainty and ensure we continue to provide strong risk adjusted returns to our debt and equity holders. Our balance sheet is in excellent shape at the end of the first quarter and this strength is maintained pro forma with forecasted net debt of $3.5 billion at the year end. which represents a debt-to-annualized funds flow ratio of one times. At our stress test case of $50 WTI and $2 ACO price, it would be still under 1.5 times funds flow. Consistent with past periods of commodity price weakness, we have the flexibility to optimize our capital program across both our unconventional and conventional assets to prioritize free funds flow, returning on capital, investing, and balance sheet strength. WhatCaps dividend is an important component of our total returns to shareholders and is fully funded at or below $50 WTI and in combination with the strength of our balance sheet provides consistent and stable returns for shareholders through commodity price cycles. We remain focused on continuing to drive down controllable costs and increasing capital efficiencies to improve the long-term profitability and sustainability of our business. We have the asset base, processes, Operating teams and management aligned to fully successfully execute on these strategic priorities. I will now pass it off to Joey for more remarks on our unconventional results.

Thanks, Brent. Our unconventional Montney and Duvernay assets continue to perform exceptionally well, driven by strong execution and the growing benefits of our unconventional development workflows. These workflows, now embedded across our teams, are yielding repeatable results and informing our long-range planning efforts. At KBOB, our first wine rack pad has now reached 180 days on production, achieving an IP180 rate of 1,100 BOEs a day with 39% liquids. This is a strong result and, importantly, when viewed in tandem with observed and interpreted bottom hole flowing conditions, strengthens our confidence in this development strategy on these lands. Of particular interest, the rate of drawdown is lower than relevant offset wells, and condensate to gas ratios are being sustained at higher values than those offsets, indicating improved reservoir coverage. Our second wine rack pad recently came online through permanent facilities, and early results are promising as rates and pressures are conforming to expectations established on the first pilot pad. With these results in hand, we have elected to spud our third wine rack pad, the 6 of 5 pad, and look forward to further validating the design's broader application across our future inventory at KBOT. At CAQA, we've successfully drilled and completed our first triple bench pad in northwest CAQA at 16 of 17. Initial flow tests have been encouraging. Observed frac behavior, including how the wells treated and how the three benches interacted with each other and offset parent wells conformed to our expectations. This provides an important early validation point for this configuration. The pad has been tied into permanent facilities, and we look forward to sharing more information on these wells as it becomes available. Also in Kakwa, we're drilling a new four-well pad at the southeast Kakwa area using six wells per second spacing, building off the inter-well spacing success we saw in 2023. At Musro, we did experience some brief downtime in January and February, stemming from an unexpected outage on one of our four compressors at our 509 facility that necessitated a reduction in throughput by about 25% for just over a month. Since then, production has returned to our facility's condensate-constrained capacity of about 17,500 buoys per day. Our next pad in the area will be drilled in the second half of 2025, with production expected in early 2026 as plant capacity becomes available. Well performance continues to impress, with long-term aggregate production exceeding expectations by more than 20%. This can be attributed to both our development configuration as well as production strategy of optimizing economic well recoveries through deliberate drawdown management throughout the early productive life of the wells. In our Burland area, we have just brought online another two Monty wells. Initial rates after 90 days are just over 1,000 BOEs per day, of which just over 500 barrels a day is condensate. These results, which exceed our internal expectations for this localized area by approximately 14%, are an important confirmatory data point. We are investigating targeted de-bottlenecking to support modest programs in this area in the years to come. Finally, at Latour, our 413 facility continues to advance on schedule. With 90% of long-lead equipment now ordered and detailed engineering well underway, we remain firmly on track for commissioning in late 2026 to early 2027. This facility will unlock 35,000 to 40,000 BOEs per day of high-impact Montney production with the potential for significantly more in Phase II. Our two recent delineation wells in the area continue to exceed expectations, which is helping to continue to build confidence in our long-term development plans in the area. The first well at 13 of 21 has now been on production for more than 180 days and has achieved an IP180 of just over 1,300 buis a day, 39% liquids, including 420 barrels a day of condensate. The second well at 13 of 35, with 120 days production, has achieved an IP120 of roughly 1,650 BOEs a day, of which 23% of liquids, including 245 barrels a day of condensate. As noted in our last earnings call, those liquid percentages would be expected to increase by 10% to 15% once they flow into deep cut facilities, which will be the case once our 413 facility is online. With that, I will now pass it over to Chris Bullen to talk about our conventional assets.