CALGARY,
AB, May 16, 2022 /CNW/ - Whitecap Resources
Inc. ("Whitecap") (TSX: WCP) announces that the Toronto
Stock Exchange (the "TSX") has accepted Whitecap's notice of
intention to commence a normal course issuer bid (the
"NCIB"). As at May 13, 2022,
Whitecap had previously purchased an aggregate of 33,326,223 common
shares on the open market at a volume weighted average price per
share of $7.93 under a normal course
issuer bid that runs from May 21,
2021 to May 20, 2022, and
pursuant to which Whitecap was permitted to repurchase up to
58,947,076 common shares.
The NCIB allows Whitecap to purchase up to
58,341,984 common shares (representing 10% of Whitecap's
public float, as defined by the TSX, as of May 8, 2022) over a period of twelve months
commencing on May 21, 2022. On
May 8, 2022, Whitecap had
619,143,704 common shares outstanding and
583,419,841 common shares in its public float. The NCIB will
expire no later than May 20, 2023.
Under the NCIB, common shares may be repurchased on the open market
through the facilities of the TSX, other designated exchanges
and/or alternative Canadian trading systems and in accordance with
the rules of the TSX governing normal course issuer bids. The total
number of common shares Whitecap is permitted to purchase is
subject to a daily purchase limit of 911,145 common shares,
representing 25% of the average daily trading volume of
3,644,583 common shares on the TSX calculated for the
six-month period ended April 30,
2022, however, Whitecap may make one block purchase per
calendar week which exceeds such daily repurchase restrictions. Any
common shares that are purchased under the NCIB will be cancelled
upon their purchase by Whitecap.
Whitecap believes that, at times, the prevailing share price
does not reflect the underlying value of the common shares and the
repurchase of its common shares for cancellation represents an
attractive opportunity to enhance Whitecap's per share metrics and
thereby increases the underlying value of Whitecap's common shares
to its shareholders. The NCIB will be used as another tool to
enhance total long-term shareholder returns and will be used in
conjunction with management's discretionary funds flow allocation
strategy.
In addition, Whitecap confirms that a cash dividend of Cdn.
$0.03 per common share in respect of
May operations will be paid on June 15,
2022 to shareholders of record on May
31, 2022. This dividend is an eligible dividend for the
purposes of the Income Tax Act (Canada).
Note Regarding Forward-Looking Statements
Certain information regarding Whitecap set forth in this
document contains forward-looking statements that involve
substantial known and unknown risks and uncertainties. The use of
any of the words "plan", "expect", "intend", "believe", "should",
"anticipate" or other similar words, or statements that certain
events or conditions "may" or "will" occur are intended to identify
forward-looking statements. These statements are only predictions
and actual events or results may differ materially. Many factors
could cause Whitecap's actual results to differ materially from
those expressed or implied in any forward-looking statements made
by, or on behalf of, Whitecap. In particular, forward-looking
statements contained in this document include, but are not limited
to, statements with respect to the anticipated advantages to
shareholders of the NCIB. These forward-looking statements are
subject to numerous risks and uncertainties, including but not
limited to, the risk that the anticipated benefits of the NCIB may
not be achieved; and the anticipated benefits to be derived from
management's discretionary funds flow allocation strategy. Readers
are cautioned that the foregoing list of factors is not exhaustive.
Although the forward-looking statements contained in this document
are based upon assumptions which management of Whitecap believes to
be reasonable, Whitecap cannot assure investors that actual results
will be consistent with these forward-looking statements. With
respect to forward-looking statements contained in this document,
Whitecap has made assumptions regarding, among other things, the
ability of Whitecap to achieve the benefits of the NCIB. These
forward-looking statements are made as of the date of this document
and Whitecap disclaims any intent or obligation to update publicly
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.
SOURCE Whitecap Resources Inc.