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' third quarter 2026 results and 2027 budget 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. 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 CEO, Mr. Grant Fagerheim. You may begin.

Thanks very much, Sylvie. Good morning, everyone, and thank you for joining us today. There are five members of our management team here with me today. Our president, Joey Wong, our senior vice president and CFO, Thanh Kang, our senior vice president, asset development and information technology, Dave Mombourquette, Chief Operating Officer, Travis Tweit, and our Vice President, Conventional Division, Reserves and Reservoir Development, Chris Bourne. 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 very strong operational and financial results for the third quarter of 2026. Our technical and operations teams continue to execute efficiently with our asset productivity once again exceeding our expectations. Third quarter production averaged 390,720 BUE per day comprised of 237,252 barrels per day of condensate, light oil, and natural gas liquids in approximately 920 million cubic feet a day per day of natural gas. Production was well above our internal forecast, driven by strong Thank you very much. of last year. After capital investments of $533 million, we generated $640 million of free funds flow in the quarter, bringing free funds flow to $1.9 billion, or $1.57 per share, for the first nine months of 2026. From an activity perspective, we drove 84 wells in the third quarter, 35 in our unconventional division across our montane and duvernay assets, and 49 and our conventional division in Alberta and Saskatchewan. With quicker cycle times, we are executing our 2026 capital program ahead of schedule. Rather than slow activity into year-end, we will maintain our current activity levels through the fourth quarter and take advantage of the elevated crude oil and condensate pricing environment. As a result, we are increasing our 2026 capital budget by approximately $100 million to $2.2 billion. These quicker cycle times along with strong performance from our assets is prompting us to raise our 2026 average production guidance for the third time this year to 392,000 BUE per day, which equates to the fourth quarter production of 395,000 to 400,000 BUE per day. This represents a total increase of approximately 19,500 BUE per day, or 5% from original budget guidance. Increasing returns to our shareholders is a priority for Whitecap. Reflecting the strength of our business, our Board of Directors has approved an increase to our monthly dividend of approximately 1.5% to 6.17 cents per share, or $0.74 per share annually, affected with the November dividend table in December. The increase equates to approximately $13 million on an annual basis and follows the substantial improvements to our cost structure and overall highly economic growth we have delivered to date. Beyond our base dividend, we continue to prioritize the balance sheet. For the first nine months of 2026, our free funds fall of approximately $1.9 billion funded $665 million of base dividends, with the remainder directed to debt reduction. Net debt decreased by approximately $1.3 billion since year-end 2025, now being $2.1 billion at the end of the third quarter, 4.4 times net annualized funds flow. Our balance sheet is in excellent condition, and Tom will talk to more details shortly. Moving to our 2027 We are excited to announce our $2.4 to $2.6 billion of capital program includes the drilling of 332 total wells comprised of 127 unconventional montane and duvernay wells and 205 conventional wells delivering average production, as I said before, 400 to 410,000 BW per day. On a pro-share basis, the budget delivers approximately 3% annual growth or approximately 5% including the plan major turnarounds at KBOG in the third quarter of 2027. Our forecast for 2027 will continue the operational momentum achieved to date in 2026 and build on recent results we've achieved, managed to achieve on our asset base. Our 2027 average production forecast includes 140,000 BWE per day from our conventional division which is more normalized leverage after a strong 2026, designed to generate significant relief cash flow in the current commodity price environment. Our unconventional division forecast is to grow by 8% to 265,000 BUE per day, and more importantly, to grow condensate production, our base of 60,000 to over 70,000 BUE per day, as we anticipate demand in condensate continuing to be most topical. As for prices, our forecast will generate $4.6 billion of funds flow and free funds flow of $2.1 billion. It is important to note that the free funds flow will increase by approximately $400 million to $2.5 billion in 2027 if the recently announced productivity mega-deduction is enacted as proposed. The under-based dividend of $900 million, this would lead $1.2 billion to $1.6 billion of unallocated free funds flow. We will continue to be prudent and patient with respect to our unallocated funds flow, and we'll look for opportunities to redeploy the excess funds flow through 2027. We will remain diligent on looking to drive further shareholder value for the longer term, and until we feel the time is appropriate, we are comfortable parking the excess refunds flow on our balance sheet in the short to medium term. I will now pass The call will run to Tom for further discussion on third quarter financial results. Tom?

Thanks, Grant. Petroleum and natural gas revenues increased 45% to $2.4 billion compared to the third quarter of 2025. Third quarter WTI averaged U.S. $85.79 per barrel, up 32 cents from last year, as the conflict in the Middle East continued to disrupt global crude oil supply. Edmonton MSW and condensate differentials, which averaged US $0.62 per barrel and US $3.42 per barrel, respectively, in the third quarter, were much tighter than the headline WCS heavy oil differentials, which averaged about US $14 per barrel in the third quarter. As a result, our realized crude oil and condensate price was $113.89 per barrel in the third quarter, an increase of 35% Thank you. Thank you. ACO prices averaged $1.57 per MCF in the third quarter, up from 63 cents last year, as export pipeline maintenance restrictions were lower than in third quarter of 2025. The benefit of our natural gas price diversification was again evident, with our realized natural gas price averaging $2.32 per MCF, which is 77% higher than a year ago, and a 75% premium to ACO. Approximately 30% of our third quarter natural gas revenue came from sales into U.S. markets. And beginning in 2028, approximately 5% of our natural gas production will be exposed to European TTF pricing. We continue to see the benefits of our lower cost structure. Operating costs were $10.22 per view in the quarter. I do want to highlight that the third quarter includes one-time favorable cost adjustment. including excluding those adjustments, operating expenses would be $11.70 per VOE, which is still below both the second quarter and the third quarter of last year, reflecting lower fixed costs and higher production volumes. For 2027, we forecast operating costs in the $12 to $12.50 per VOE range, which is compared to 2026, include higher power and fuel cost expectations and the costs associated with the KVOP turnaround in the third quarter. Transportation expenses increased 10% to $3.76 per VOE, reflecting the growing weighting of our unconventional production, which is further from sales points, including the U.S. markets where we receive higher realized prices. Our transportation costs are expected to remain in the range of $3.50 to $3.75 per VOE for 2027. The royalties were 14.5% of revenue, or $9.70 per VOE, compared to 12.2% last year, primarily on higher commodity prices. Fund flow was $1.2 billion, or $0.96 per share, up 32% per share compared to the third quarter of 2025. Through the first nine months of the year, fund flow was $3.6 billion, or $2.91 per share, An increase of 73 cents in total and 30% on a per share basis. Net income was 326 million or 27 cents per share compared to 204 million or 17 cents per share in the third quarter of last year. During the quarter, we recorded an unrealized loss on commodity contracts of 333 million. This is a non-cash marked market movement that will fluctuate with changes in foreign commodity prices. Capital expenditures were $533 million in the quarter, below our internal forecast as continued cycle time compression and operational execution are improving efficiency. This resulted in free funds flow of $640 million, bringing year-to-date funds flow to $1.9 billion. Year-to-date free funds flow funded $665 million of base dividends with the remainder directed to debt reduction. As a result, net debt at September 30th was $2.1 billion, down approximately $450 million from the end of the second quarter and approximately $1.3 billion since year-end 2025. That represents a net debt to annualized fund flow ratio of 0.4 times. We ended the quarter with no draws on our $2.5 billion credit facility. and 1.7 billion of investment grade senior notes at a weighted average interest rate of 4.76%. A remaining 195 million of senior notes that mature in December of this year, we will anticipate using cash on hand to fund that payment. We expect to exit 2026 with net debt of less than 2 billion. Turning back to 2027, at our price tag of $80 WTI, and a 71-cent Canadian-U.S. exchange rate, we forecast funds flow of approximately $4.1 billion, or $3.34 per share, which generates approximately $1.6 billion of free funds flow after capital investments of $2.5 billion at the midpoint. Our guidance reflects the current tax rate of 10% to 12% of pre-tax funds flow. This does not include the impact of the productivity mega-deductions. If enacted as proposed, the mega deduction would increase our 2027 free funds flow to approximately 2 billion. Our current strip pricing, that would be closer to 2.5 billion of free funds flow in 2027. Free funds flow beyond this level provides flexibility for additional shareholder returns, which we will assess in 2027. As Grant mentioned, we take a counter cyclical approach to capital allocation and have been prudently allocating excess refunds flow to our balance sheet to provide maximum flexibility to increase shareholder returns. The opportunities that are in front of us today, whether they be additional growth, share repurchases, further dividend growth or tuck-in acquisitions, will be thoughtfully considered and we will not rush into anything. I'll now pass it off to Joey for remarks on our unconventional results.