Whitecap Resources Inc.

Good morning. My name is Sylvie, and I will be your conference operator today. At this time, I would like to welcome everyone to Whitecap Resources Q3 2025 results and 2026 budget conference call. Note that 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. And if you would like to ask questions during this time, simply press star then number one on your telephone keypad. And if you would like to withdraw your question, please press star then number two. And I would like to turn the conference over to Whitecaps President and CEO, Mr. Grant Fagerheim. Please go ahead.

Thanks very much, Sylvie. And good morning, everyone, and thank you for joining us. There are five members of our management team here with me today. Our Senior Vice President and CFO, Ton Kang. Our Senior Vice President, Production and Operations, Joel Armstrong. Our Senior Vice President, Business Development and Information Technology, Dave Monberquette. Our Vice President of the Unconventional Division, Joey Wong. and our Vice President, Conventional Division, Chris Bullen. 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 that was issued yesterday afternoon. We are very pleased to provide our shareholders with this update this morning. As evidenced by our third quarter operating results and the 2026 budget released yesterday, The first full quarter following the integration of Averin assets into Whitecap portfolio has been highly successful. The company's assets and personnel are strategically aligned, driving operational efficiency and value creation. Our top performing assets serve as key differentiators, reinforcing the company's competitive advantage and supporting long-term growth well into the future. Third quarter production of 37,623 BUE per day, which included 227,419 BUE per day of total liquids and 883 million a day of natural gas. Strong operating performance has continued throughout the entire year, supported by the seamless integration of the Varon assets and field operating teams, which has enhanced overall operating efficiency. As a result, we are increasing our 2025 guidance to 305,000 BUE per day for the full year, which implies 370,000 BUE per day for the fourth quarter, while our four-year capital program of $2 billion remains unchanged. By leveraging the collective knowledge and technical understanding of the combined assets and operations, our 2026 budget is set to deliver robust free cash flow from a very efficient capital drilling program. Our 2026 budget has been set between $2 to $2.1 billion which is forecast to deliver average production of between 370,000 to 375,000 BUE per day and an exit production rate in excess of 380,000 BUE per day to grow production per share by 3%. The capital program is down from initial capital projections to that 2.1 to 2.0 to 2.1 billion dollars from what was 2.6 billion dollars. Our unconventional division will be allocated 75% of the capital budget to drill approximately 100 wells, while the conventional division will receive the remaining 25% to drill approximately 155 wells. We're particularly excited for our Latour asset, where our 413 battery is on budget and ahead of schedule. Joey will provide more details on our plans for this asset in 2026, but needless to say, we're looking forward to development of this liquids-rich asset base in the near future. The capital efficiency embedded in our budget is approximately 10% better than the previous forecast, which can be attributed to recent operational performance, asset allocation, and the realization of synergies. In aggregate, we have included $300 million in forecasted synergies for 2026, or 40% higher than our original estimate of $210 million. Capital synergies of approximately $130 million were driven by enhanced procurement, operational efficiencies, and rig line optimization. Operating cost synergies equate to $135 million, which is $60 million higher than our original estimate. We are seeing significant wins in areas with adjacent or overlapping operations, along with procurement success and operational best practices. Lastly, we have realized $35 million of corporate synergies through reductions in G&A, share-based compensation and interest expense. These benefits are a direct result of the combination leveraging enhanced scale, integration and the technical best practices that were previously divided between the two organizations. I want to thank our entire office and field teams for their technical rigor and dedication in achieving a significantly higher synergy realization and doing so much faster than initially anticipated. Our culture of continuous improvement positions us to further enhance these synergies through ongoing technical initiatives planned for 2026. I will now pass the mic on to Tom Kang to further discuss our third quarter financial results and provide more details to our 2026 budget. Thank you.

Thanks, Grant. US dollar WTI remained relatively stable at $65 per barrel in Q3 compared to $64 per barrel in Q2 in contrast to a weaker ACO price of 63 cents per MCF. Whitecap was, however, able to achieve a significantly higher price realization of $1.31 per MCF due to our price diversification efforts. Although natural gas accounted for 39% of our production, it only represented 6% of our revenues in the third quarter. From an upside perspective, a dollar change to ACO would increase our free funds flow by $200 million. Operating costs in the quarter decreased by 8% to $12.50 per BOE compared to the second quarter due to early synergy realizations. Current income tax of $25 million in the quarter represents a low pre-tax funds flow rate of 4%. Tax pools at the end of the quarter were $9.8 billion, of which $4.4 billion were non-capital losses, providing us with strong tax coverage for 2026. Our light oil and condensate-weighted portfolio, combined with a lower cost structure, generated funds flow of nearly $900 million in the third quarter, and after capital expenditures of approximately $550 million, free funds flow was $350 million. Returns to shareholders in the third quarter were approximately $400 million, as $221 million of base dividends were enhanced by approximately $180 million in share repurchases under our NCIB scheme. reducing our share count by almost 2%. The company's balance sheet remains strong, with net debt of $3.3 billion at the end of the quarter, including $1.7 billion in investment-grade senior notes. Supported by this solid financial foundation and our prudent hedge positions for 2026, we are well positioned to manage commodity price volatility and maintain long-term financial stability. For 2026, based on $60 WTI and $3 ACO, we anticipate fund flow of $3.3 billion. And after capital investments of $2.1 billion, we generate free fund flow of $1.2 billion. This allows us to return $900 million in dividends to shareholders and the opportunity to repurchase $300 million worth of shares to reduce our share count by a further 2%, enhancing our per share metrics. Our commodity price sensitivity for 2026 are as follows. For every dollar US change in WTI, our funds flow increases by 50 million. For every 10 cent per GJ change in ACO, our funds flow increases by 20 million. And for every penny change in the USD CAD FX rate, our funds flow is impacted by 45 million. I'll now pass it off to Joey for more remarks. on our unconventional third quarter results and 2026 budget. Thanks, Don.