Whitecap Resources (TSX: WCP) reported Q3 2025 revenue of $1.66 billion, up 86% from $890.9 million a year earlier. The quarter reflects a materially larger production base following the May 12 closing of the Veren combination and sets up higher full-year guidance alongside a 2026 capital plan.
Despite the revenue surge, per-boe economics weakened. Petroleum and natural gas revenue per boe fell 14% to $48.17 from $55.88, and operating netback per boe declined 14% to $28.02 from $32.59. Hedging helped as realized gains rose to $47.4 million from $14.9 million. Royalties improved on a unit basis to $5.88 per boe from $9.01, while operating costs improved to $12.49 per boe from $13.38.
Funds flow rose 119% to $896.6 million from $409.0 million but net income fell 26% to $204.2 million for the quarter from $274.2 million last year.
On the bottom line, diluted EPS was $0.17 versus $0.46 last year, down 63% as the weighted average basic share count more than doubled to 1.22 billion from 595.2 million.
Average realized prices were mixed year over year. Oil averaged $84.27 per barrel, down 11%, NGLs averaged $36.43 per barrel, up 7%, and natural gas averaged $1.31 per Mcf, up 72%.
Total operating netbacks increased 86% to $966.1 million from $519.7 million, tracking the larger production base even as per-unit margins compressed.
Capital expenditures were $546.3 million, up 100% from $272.7 million. With free funds flow of $350.3 million and dividends declared of $221.5 million, the payout was covered 1.58 times, leaving $128.8 million before other uses. Dividends per share were unchanged at $0.18 for the quarter, although the total more than doubled because of the larger share count.
On operations, average production jumped 116% to 374,623 boe/d from 173,302 boe/d. Oil volumes increased 95% to 179,918 bbls/d from 92,335 bbls/d. NGLs rose 131% to 47,501 bbls/d from 20,578 bbls/d. Natural gas was disclosed at 883,224 Mcf/d versus 362,332 Mcf/d, up 144%.
Whitecap lifted 2025 average production guidance to 305,000 boe/d from 295,000 to 300,000 boe/d previously, with Q4 2025 forecast at about 370,000 boe/d at 61% liquids. The board approved a 2026 capital budget of $2.0 billion to $2.1 billion targeting average production of 370,000 to 375,000 boe/d and a Q4 2026 average above 380,000 boe/d. The company embeds $300 million of annual capital, operating and corporate synergies in its 2026 forecast, which is 40% above the original $210 million estimate at the time of the Veren combination.
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