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' second quarter 2026 results conference call. Please note that all participant 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. And if you would like to withdraw from the question queue, Please press star then number two. I would like to turn the conference over to Whitecaps President and CEO, Mr. Grant Fagerheim. Please go ahead, sir.

Thank you very much, Sylvie, and good morning, everyone, and thank you for joining us here this morning. There are five members of our management team here with us today. Our President, Joey Wong, our Senior Vice President and CFO, Thanh Kang, our Senior Vice President, Asset Development and Information Technology, Dave Mombourquette, and our Vice President, Conventional Division, Reserves and Reservoir Development, Chris Bullin. 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. We are once again pleased to report exceptionally strong operational and financial results for the second quarter of 2026. Our technical and operations teams continued to execute effectively across our second quarter capital program, with asset productivity exceeding expectations. Our second quarter funds flow was a big number at $1.4 billion, or $1.11 per share, a record for Whitecap that we are very pleased with. As most are aware, disruptions to crude oil and condensate supply from the Middle East materially heightened Global availability of light barrels during the quarter and is still ongoing, supporting stronger benchmark prices and increased demand for North American light oil and condensate. The combination of crude oil and condensate pricing and continuing to lower operating costs resulted in a robust operating net back of $43.84 for BOE, a 48% improvement to the prior year quarter. Free funds flow of $925 million was also a record for Whitecap. With these incremental funds, we will continue to execute our counter-cyclical approach to free funds flow allocation. During periods of elevated commodity prices, we will prioritize debt reduction, strengthen the balance sheet, and preserve maximum flexibility to enhance shareholder returns across commodity price cycles. Over the last six months, we have reduced our net debt By $900 billion to $2.5 billion, or 0.5 times debt to cash flow. From an operational perspective, Whitecap delivered another strong operating quarter, with production averaging 388,894 BUE per day, comprised of 239,083 barrels of liquids, slightly under 900 billion cubic feet a day of natural gas. We drove 47 wells across the Montney, Duvernay, and our conventional portfolio, using approximately seven rigs during the quarter. With spring break-up now behind us, activity is increasing as planned. We expect to use approximately 12 rigs through the third quarter and into the fourth. Our average quarterly production exceeded our internal forecast by approximately 8,000 BW per day, driven by strong asset-level performance at KBOB, and Base Production Optimization in Central Alberta. More broadly, results were shown across both divisions with new oil performance, base optimization and high infrastructure utilization contributing positively during the quarter. These results reflect consistent application of an integrated development workflow which combines the expertise of our technical and operating teams with a deep proprietary data set and rigorous feedback loops from each well pad and pad drill. Based on this outperformance, we are raising our 2026 production guidance for the second time this year by 5,000 BWE per day to 385,000 BWE per day. This represents a total increase from our original budget guidance of 12,500 BWE per day, or 3%. From a capital spending point of view, we are not making any changes to our 2026 capital Given the shorter cycle times that we're seeing across our asset base, we plan to maintain activity levels and expect to spend at the high end of our capital spending range, guidance range. I will now pass the call over to Tom for further discussion on the second quarter financial results. Tom?

Thanks, Grant. Petroleum and natural gas revenue increased 93% to $2.6 billion, driven by higher crude oil and condensate pricing as a result of the ongoing conflict in the Middle East. as well as the inclusion of a full quarter of production from the Barron assets. Second quarter WTI averaged $92.79 US per barrel while MSW traded at a premium to WTI of $2.52 per barrel and condensate traded as premium to WTI of $2.69 per barrel. Combined with the recent Canadian dollar, this resulted in a realized crude oil and condensate price of Canadian $127.82 In the second quarter, Whitecap produced over 200,000 barrels per day of oil and condensate, with the light oil and condensate volumes realizing a premium to WTI. Total liquids accounted for approximately 93% of our revenue during the quarter, despite being only 61% of total production. April prices remained challenged during the second quarter and were also impacted by unsigned 10G TL maintenance. resulting in ACO prices averaging $1.63 per MCS in the second quarter. The impact of our natural gas price diversification was seen in our realized natural gas price in the second quarter, averaging $2.29 per MCS, or a 66 cent premium to ACO. As Grant mentioned, we continue to improve our cost structure with operating costs at $11.88 per VOE in the quarter, down 13% compared to the prior year quarter. Given this trend, we are reducing our full-year operating cost forecast to $12 per VOE at the midpoint, which is a $0.50 per VOE reduction relative to our original budget, which increases free cash flow by approximately $70 million. Second quarter net income increased 186% compared to the prior year quarter to $890 million, or $0.73 per share. The increase was primarily driven by higher petroleum and natural gas sales, which were partially offset by higher royalties, a lower net gain on commodity contracts, and higher DDMA. In the second quarter, we recorded an unrealized gain on commodity contracts of $282 million compared to an unrealized loss of $509.1 million in the first quarter. These large non-cash movements reflect the change in the mark-to-market values of our commodity contracts resulting from significant volatility Our risk management strategy is to hedge between 25% to 35% of our crude oil and natural gas production on a rolling two-year trailing basis. For the second half of 2026, we've hedged 33% of our net crude oil volumes at an average swap price of approximately $94 Canadian per barrel, and 28% of our net natural gas volumes and an average swap rate of $4 per MCF. For 2027, we have hedged 26% of our net crude oil volumes at an average swap price of $93 Canadian per barrel and 13% of our net natural gas volumes at an average swap price of approximately $3 per MCF. Since closing the Barron transaction, we have reduced net debt by $900 million to $2.5 billion, an amount equivalent to WhiteFap's standalone net debt prior to the transaction, and a significant achievement for our company. As Grant mentioned, we will continue to allocate our pre-funds flow towards the balance sheet, and we'll continue to assess opportunities to enhance shareholder returns in the future. I will now pass it off to Joey for more remarks on our unconventional results.