"Whitecap is a net negative emissions emitter that has successfully emerged from the 2020 bloodbath as a stronger entity given the successful acquisitions of several companies at compelling valuations. Trading at 2.7x EV/CF at $70WTI in 2022 and a 29 per cent free cash flow yield I see them being able to meaningfully increase their dividend (3.5 per cent current yield) while modestly growing production and lowering debt (<1X D/CF). With a market cap of $2.7B it is relevant to most generalists and is a no-brainer midcap pick for new money entering the space. Using US$70WTI and a 6x target multiple I see the potential for 110 per cent upside."
- Eric Nuttall