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' second quarter 2025 results conference call. All lines have been placed on it 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 a question, please press star, then the number two. I would now like to turn the conference over to Whitecap's President and CEO, Mr. Grant Fagerheim. You may begin your conference call.

Thanks, Joanna. And good morning, everyone, and thank you for joining us here today. There are four members of our management team here with me today, our Senior Vice President and CFO, Ton Kang, our Senior Vice President of Production and Operations, Joel Armstrong, our Vice President on Conventional Division, Joey Wong, and our Vice President, Conventional Division, Chris Bullen. Before we get started today, I would like to remind everybody but 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. To begin, it would be remiss of me to not highlight the most significant development of the quarter, the completion of the Varum business combination on May the 12th, which has increased our production to approximately 365,000 BUE per day and our enterprise value to over $15 billion. I'm also pleased to report that we had a very successful operational second quarter, continuing to build on the momentum that we've developed year to date. Strong second quarter production of 292,754 BUE per day was well above our internal forecast as an asset level performance exceeded expectations across our conventional and unconventional portfolios. Our production in the quarter benefited from strong new volumes across our Montney, Duvernay, and southeast Saskatchewan assets, as well as production optimization through downtime avoidance within the Duvernay and the Glauconite formation. As referenced earlier, we successfully closed our strategic combination with Barron during the second quarter on May 12th, representing a transformational milestone for the company. The newly expanded Whitecap is now Canada's seventh largest oil and natural gas producer and fifth largest natural gas producer, with an exceptionally deep portfolio of a premium drilling inventory for advancing incremental growth and value added for our shareholders. As a result of the significant effort and coordination among our various team members, the integration of the Varon assets and staff has been successful in a remarkably short period of time. We've seen plenty of early wins through the consolidation of corporate costs and our improved credit profile. By leveraging combined best practices and our enhanced scale, we are expecting to see capital efficiency improvements and operating cost reductions across the portfolio. We remain confident in our ability to unlock sustainable synergies and look forward to updating shareholders as our programs over the next six to 12-month period of time. Through the second half of 2025, we plan to allocate 75% of our capital program to our unconventional Montney and DuVernay assets, where we currently have seven active rigs running and focused in areas where we have strong technical understanding with available infrastructure capacity. The remaining 25% of our second half capital program will be invested in our conventional assets in Saskatchewan and central Alberta. We currently have three active rigs on our conventional assets, peaking at eight rigs in the second half, building off the strong momentum of the first half program. We will continue to stay on the course on strategic priorities that have underpinned our success to date. including maintaining our balance sheet strength, capital discipline, and providing sustainable returns to our shareholders. Our balance sheet is in excellent shape, with low leverage and ample liquidity. Our flexible capital program and sustainable base dividend of 73 cents per share per annum remain well covered within funds flow at current commodity prices, supported by our best-in-class portfolio of assets. I will now pass off to Joy Wong, for more remarks on our unconventional results.

Thank you. Thanks, Grant. We delivered strong operational performance across our unconventional portfolio during the second quarter, while working diligently to integrate new assets and personnel across the combined Montney and Duvernay asset base. We've seen early operational wins from the integration of the combined assets through knowledge sharing of technical best practices, the optimization of rig lines, and initial procurement optimization efforts. Our Duvernay production at KBOB was a notable driver of unconventional outperformance during the quarter. Production was higher than forecast as strong operational execution accelerated new pad development into the quarter, and downtime optimization allowed us to mitigate the impact of turnaround activity at our operated 15-7 gas processing facility. We were also successful in mitigating the impact of an extended outage at a third-party facility in the area as adjustments were made in the field by our field operations team to limit our exposure. We recently brought our third wine rack style pad on production through permanent facilities in KBOB with promising early results. Strong observed reservoir performance and positive production results across our first three wine rack pads support moving this design from pilot to development mode on applicable lands in our KBOB asset. This wine rack design has the potential to improve per well recoveries and associated well economics on over three quarters of the undeveloped legacy whitecap acreage and just under a quarter of the barren acreage. Our measured approach to delivering optimized and predictable results in the DuVernay demonstrates our commitment to enhancing returns and maximizing our high-quality inventory in our unconventional asset base. We acquired our first DuVernay assets in the second half of 2022 and at that time underwent a rigorous technical review. As our understanding of the assets grew and our development program matured, We outlined specific goals for our team, which included the acceleration of development and the full utilization of our 1507 gas processing facility to maximize overall asset profitability. We are pleased to report that we are now at capacity at that facility. As an example of the improved profitability of the asset, the second half operating costs on our legacy white calf acreage are forecasted to be 30% lower than what was realized in 2023. Further, to facilitate additional growth in the area, we have completed the construction of an offload connection to a nearby third-party processing facility. The integration of Duvernay assets at KBOB has been quite seamless, given the significant overlap and stage of development. As the largest operator in the Duvernay, we now have the size, scale, and technical capabilities to further improve profitability on this well-understood asset base. Moving over to the Montney. 12 Montney wells at Gold Creek and Carr were brought on production during the first half of the year. Overall results in this area are performing in line with our internal expectations. We are in the process of assessing the impact of changes in development planning and well design in Gold Creek and Carr, leveraging recent and legacy pad results along with the significant technical expertise of our teams. Our focus remains on enhancing well economics and the long-term potential of the assets while balancing our risk exposure, consistent with how we've approached development across our unconventional assets over the years. We are now seeing improved infrastructure reliability and utilization across our Gold Creek and Carr assets, as we reach the benefits of significant infrastructure optimization efforts in the first half of the year. Key upgrades included enhancements to support existing production, including improvements to gasless capacity, and several de-bottlenecking projects that have improved overall operability and consistency. The impressive results have continued at our Musrell Monty asset, giving us the confidence to begin drilling larger pads to further target capital efficiency improvements in the area. We are currently drilling a six-well pad, which is expected to be on production in early 2026 when additional plant capacity becomes available. Our investigation of de-bottlenecking options to increase gas throughput at our 5 and 9 facility also remains underway. At CAQA, we recently brought on our first triple bench pad on production at 16 of 17 in the northwest portion of our acreage. Initial rates on the test pad after 90 days are over 1,200 BOEs per day per well with 65% liquids exceeding our internal expectations for the area by 14%. These results are encouraging and provide significant validation points for this pad configuration. Importantly, the triple bench design is behaving as expected based on our technical observations thus far. Further observation of bottom wall pressure trends will be collected in the coming months and will be informative as we continue to assess the development potential of this pad moving forward. At Latour, phase one of our 413 Latour facility remains firmly on schedule for commissioning in late 2026 to early 2027. We've now received all the required permits to begin construction and as a result have initiated earthworks on the site. All major equipment has now been procured for delivery in the first quarter of 2026. Strong performance from our two Latour delineation wells brought on production in 2024 has continued. Each of these wells has exceeded internal expectations by 20%, providing us with the confidence in the reservoir deliverability in the area and our long-term development plans. We will continue to advance our technical delineation program by drilling a three-well pad in the area late in the third quarter. As the most analogous data in our modern well set, Our Latour Wells also provide an important technical read-through for our adjacent rest-saving asset. With that, I will now pass over to Chris Bullen to talk about our conventional assets.