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 q4 and 2025 2025 results and reserves 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 and if you would like to ask questions 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 number two. And I would like to turn over to Whitecaps President and CEO, Mr. Grant Fagerheim. Please go ahead.

Thanks, Sylvia, and good morning, everyone, and thank you for joining us here today. There are five members of our management team here with me today, our Senior Vice President and CFO, Tong Kang, our Senior Vice President of Production and Operations, Joel Armstrong, our Senior Vice President of Business Development and Information Technology, Dave Momber-Kett, our Vice President of Unconventional Division, Joy Wong, and our Vice President of the Conventional Division, Chris Pullen. 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. 2025 was another transformational year for Whitecap. as we follow up to our 2022 transaction with XTO Canada. The combination with Barron was deliberate. We pursued it to increase scale, strengthen our asset base, add to our enviable inventory position, and to structurally improve profitability. The strategy is already delivering measurable results. We exited the year with strong operational momentum. Fourth quarter production averaged over 379,000 BUE per day, exceeding expectation as a result of accelerated timing and asset level outperformance. Importantly, Q4 production per share was the highest quarterly result in our history, a clear reflection of our quality of the combined asset base and the strength of our technical teams and processes. For the year, we generated funds for $2.95 per share, one of the strongest on annual results in our history, despite operating in a lower commodity price environment. That speaks directly to the structural improvements achieved through scale, synergy capture, and disciplined execution. With capital expenditures in line with our $2 billion guidance, we generated approximately $900 million of free cash flow and returned $736 million to shareholders through dividend and $193 million through share repurchases. This balanced approach, growing per-share production while returning meaningful capital defines our total shareholder return framework. In 2025, we delivered a 15% total shareholder return at the high end of our 10% to 15% target range. The return was comprised of 6% production per share growth, a 7% dividend yield, and 2% of share repurchases. Our objective is to consistently deliver superior long-term returns through measured capital deployment, operational discipline, and structural margin improvement. From a reserves perspective, we now have 2.2 billion BOE of 2P reserves under management, equating to a reserve life index of over 16 years, with approximately 10,500 high-quality drilling locations in inventory that include optionality in light oil, liquids rich, and lean natural gas opportunities. With this, we have decades of development runway to continue driving increasing returns for our shareholders. We'll now pass it on to Tom to further discuss our financial results. Thank you.

Thanks, Grant. From a financial standpoint, 2025 clearly demonstrates the resilience and structural strength of our business. On a year-over-year basis, the commodity backdrop was weaker. WTI averaged just under $65 U.S. per barrel, down approximately 15%, and Acorn Natural Gas averaged under $1.70 per GJ. Despite that environment, we generated fund flow of $2.95 per share, the second highest annual result in our history. More importantly, our cash flow netback increased year over year. Expanding margins in a lower-priced environment reflects structural improvements rather than commodity tailwinds. There were three primary drivers. First, operating efficiencies. We accelerated the capture of synergies following the Varon combination. Field level optimization and economies of scale drove structural cost improvements, with fourth quarter operating costs declining to $12.24 per BOE, an 11% decrease from 2024. Second, corporate and financing efficiencies. While G&A on a per BOE basis remained relatively consistent, we reduced absolute G&A through the elimination