Whitecap Cuts Second Half Spending By $50 Million

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Whitecap Resources Inc. has reduced its second half spending to $250 million from $300 million in order to have more flexibility and to improve near term free funds flow.

Whitecap’s full year 2019 capital expenditure program is now anticipated to be $400 million, down from its previous guidance of $450 million.

Average production guidance of 70,000 to 72,000 boe/d remains unchanged despite the reduction in capital expenditures. The company now anticipates growing production to 74,000 to 75,000 boe/d in the fourth quarter of 2019 from the second quarter average production of 70,611 boe/d.

“Our continued disciplined approach to capital spending in the second half of 2019 will further strengthen our balance sheet going into a period of significant global economic uncertainty,” said the company a news release. “We believe the reduction to our capital program is prudent given the continuing U.S./China trade wars and recessionary concerns in 2020.”

The company said it has the operational and financial flexibility to accelerate its capital program in 2020 to respond to more stable market conditions and will ensure capital expenditures and dividend payments are well funded by funds flow.

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