An anonymous director reports

WHITECAP RESOURCES INC. ANNOUNCES STRONG FIRST QUARTER RESULTS, DIRECTOR NOMINEE AND PROVIDES AN OPERATIONAL UPDATE

Whitecap Resources Inc. has released its operating and unaudited financial results for the three months ended March 31, 2023.

Selected financial and operating information is outlined herein and should be read with Whitecap's unaudited interim consolidated financial statements and related management discussion and analysis for the three months ended March 31, 2023, which are available on SEDAR and on the company's website.

Message to shareholders

Whitecap has had a strong start to the 2023 year, generating $448-million of funds flow in the first quarter on capital expenditures of $254-million, resulting in $194-million of free funds flow. Return of capital to shareholders during the quarter totalled $121-million, or 62 per cent, of free funds flow, consisting of $88-million of dividends and $33-million of share repurchases under Whitecap's normal course issuer bid (NCIB). The company remains focused on generating strong returns on capital invested while being committed to returning a significant amount of free funds flow back to shareholders.

First quarter production of 155,124 barrels of oil equivalent per day included 102,931 barrels per day of total liquids production (oil, condensate and NGLs (natural gas liquids)) and 313,159,000 cubic feet per day of natural gas production as successful first quarter drilling programs in Whitecap's central Alberta and Saskatchewan business units resulted in higher liquids production than internally forecasted. Whitecap's 2023 budget was set in the third quarter of last year using average forecasted AECO prices of $5 per gigajoule, which have since deteriorated to approximately $2 per gigajoule for summer 2023 and approximately $2.50 per gigajoule for the year. As a result, early in the first quarter, Whitecap began actively reallocating capital and production additions to focus more on the company's assets that generate a stronger netback at current price levels. Whitecap spudded a total of 69 (60.8 net) wells during the first quarter, 50 (46.0 net) wells in the oil-prone areas in Saskatchewan, 13 (10.6 net) wells in central Alberta and six (4.2 net) wells in Northern Alberta.

Net debt at the end of the first quarter was $1.47-billion, a decrease of over $400-million from Dec. 31, 2022, with disposition proceeds and excess funds flow contributing to the decrease. Whitecap has now reduced net debt by over $700-million in the seven months since the closing of the XTO Energy Canada acquisition, while, at the same time, Whitecap has returned $264-million (or 43 cents per share) to shareholders through the company's base dividend plus share repurchases under Whitecap's NCIB.

Whitecap provides the following first quarter 2023 financial and operating highlights:

• Funds flow: Whitecap's first quarter funds flow of $448-million, or 73 cents per share, was strong and reflective of higher liquids production than internally forecasted. As Whitecap expects to be cash taxable in 2023 at current strip prices, the company has recorded current income tax expense of 93 cents per barrel of oil equivalent; however, due to commodity price volatility, Whitecap's expectation for cash taxability may change over the course of the year.
• Return of capital focus: Whitecap's first quarter dividends of 15 cents per share (58 cents per share annualized) increased 32 per cent compared with the fourth quarter of 2022 and increased 93 per cent compared with the same quarter in 2022. Total capital returned to shareholders of 20 cents per share includes $33-million of share repurchases under Whitecap's NCIB. The company has repurchased a total of 16.5 million shares on its current NCIB and intends to renew it upon expiry on May 20, 2023.
• Balance sheet strength: Quarter-end net debt of $1.47-billion equated to a debt to EBITDA (earnings before interest, taxes, depreciation and amortization) ratio of 0.5 times and an EBITDA to interest expense ratio of 37.1 times, both well within Whitecap's debt covenants of not greater than 4.0 times and not less than 3.5 times, respectively. At the company's stress-case price deck of $50 (U.S.) per barrel WTI (West Texas Intermediate) and $3 per gigajoule AECO, Whitecap's net debt of $1.47-billion represents a debt to EBITDA ratio of only 1.3 times, highlighting the strength of the company's balance sheet.
• Refined capital allocation: First quarter capital spending of $254-million was lower than Whitecap's original estimate of over $300-million as the company has modified its drilling schedule and reallocated capital toward higher-netback oil-weighted projects in subsequent quarters due to low AECO natural gas prices. In addition, a now-resolved supply chain delay has shifted approximately $40-million of Montney capital to the second and third quarters. Whitecap remains flexible and diligent to shift capital across its asset base and business units to maximize the company's funds flow.

Operations update

Central Alberta

Our first quarter Glauconite program consisted of 8 (7.2 net) wells drilled, of which 4 (4.0 net) wells have been brought on production and the remaining are expected by the end of June. Our full-year program includes 15 (13.8 net) Glauconite wells and, as part of the re-allocation of our capital program, we have added 5 (4.4 net) high liquid yield wells and deferred 1 (0.5 net) lower liquid yield wells.

The expansion of our Glauconite asset base over the past few years has proven to be beneficial as our operated Glauconite program continues to outperform our expectations. Four recently drilled wells with over a year of production history have achieved an average rate of 660 barrels of oil equivalent per day per well (71% liquids) which compares to our expected IP(365) rate of 590 barrels of oil equivalent per day (52% liquids).

Development of the Pembina Cardium Unit 11 ("PCU 11") continues to progress, having drilled 7 (3.9 net) wells since mid-2022, including 2 (1.1 net) injection wells. The 3 (1.7 net) wells drilled in the second half of 2022 have 90 days of production history with average rates of 420 barrels of oil equivalent per day (93% liquids) per well or over 80% above our IP(90) budget expectations of approximately 230 barrels of oil equivalent per day. Our full-year program includes 12 (6.6 net) Cardium wells in PCU 11 and 14 (8.4 net) total Cardium wells in the greater Pembina area.

Northern Alberta

Our Montney assets generate robust economics in the current pricing environment and initial upside has been captured with shorter clean up periods than originally budgeted and strong liquids rates. Our most recent 4-well Montney pad at Kakwa came on production in late 2022 and has average production rates of 1,201 barrels of oil equivalent per day (52% liquids) per well over the first 150 days on production, which is in line with our expectations on a total production basis but exceeding our expectations of 40% liquids yields. Production optimization efforts on the post-clean up period of our Montney wells are ongoing and we project capital payout on these wells within eight months of coming on production.

In addition to proactively making capital program adjustments as a result of falling natural gas prices, supply chain issues encountered in the first quarter have delayed on production dates for our most recent two pads. This delay has since been resolved with drilling and completions activities continuing and on-stream dates are now expected by the end of the second quarter. Since acquiring the Kakwa assets in mid-2021, asset level performance has been strong and with the expansive Montney drilling inventory we look forward to many years of consistent growth going forward.

We have been advancing a thorough technical review of our Duvernay acreage as well as offsetting developments since acquiring the assets in the fall of 2022 and, as a result, we have commenced drilling a 3-well Duvernay pad at Kaybob (11-34) and expect it to be on production in the third quarter. In addition, as part of the re-allocation of our capital program, we have substituted a 4-well Duvernay pad in place of a Montney pad at Lator which was expected to have lower liquids rates than these specific Duvernay wells. The 4-well pad will be drilled after the 11-34 pad and is expected to be on production in the fourth quarter of this year.

Saskatchewan

In Southeast Saskatchewan we drilled a total of 14 (14.0 net) Frobisher horizontal wells, with a mix of single, dual and triple leg wells. Early results from the program are encouraging with the 5 (5.0 net) wells that have been on production for more than 60 days achieving IP(60) average rates of 207 barrels of oil equivalent per day per well which were over 20% higher than expectations. Our two-rig program will commence once break up conditions subside, and we plan to drill 43 (37.9 net) Mississippian conventional wells in the second half of the year.

Our first quarter Southwest Saskatchewan program was very successful, highlighted by our three Lower Shaunavon wells that significantly outperformed expectations. Two of the Lower Shaunavon wells were extension wells to the North of existing development and will have a positive impact of up to 30 locations6. In total we drilled 11 (9.7 net) producing wells across four medium oil formations along with 18 (16.3 net) Viking horizontal light oil wells during the first quarter with results at or above our expectations.

BOARD OF DIRECTORS NOMINEE

Whitecap is pleased to announce that Vineeta Maguire will stand for election as an independent director to our Board of Directors at the upcoming Annual Meeting of the Shareholders ("Annual Meeting") on May 17, 2023. Ms. Maguire is an independent businesswoman with over thirty years of experience in the oil and gas industry. Prior to her retirement from Ovintiv Inc. earlier this year, Ms. Maguire was Vice President, Supply Management Services, North America during the period of 2014 to 2023 and Vice President, Canadian Operations during the period of 2012 to 2014.

Ms. Maguire holds a Bachelor of Applied Science (Chemical Engineering) from the University of British Columbia and a Master of Science (Chemical Engineering) from the University of Calgary and is a member of the Association of Professional Engineers and Geoscientists of Alberta. Ms. Maguire has received the Supply Chain Management Designation (SCMP) and is currently pursuing the Institute of Corporate Directors Designation (ICD.D). Ms. Maguire is also currently Vice Chair of the Board of Directors of Alberta Easter Seals and an Advisor of the Haskayne School of Business (Supply Chain and Logistics Advisory Board) at the University of Calgary.

Whitecap continues to work towards increasing diversity at all levels of our business. The addition of Ms. Maguire to our board of directors achieves our target of not less than 30% representation by women on our Board by the end of 2023 and reflects our commitment to diversity at our highest level while maintaining strong technical and governance guidance.

Whitecap is also announcing that one of our founding directors, Mr. Gregory S. Fletcher, is retiring from our Board of Directors and is not seeking re-election at the upcoming Annual Meeting. Our Board of Directors and management team are extremely grateful for Mr. Fletcher's valuable contributions and guidance as a director since September 2010 and wish to thank him for his years of service.

OUTLOOK

The outlook for Whitecap remains strong and resilient as we continue to focus on operational excellence in 2023 with an unchanged capital budget of $900 - $950 million and average production guidance of 160,000 - 162,000 barrels of oil equivalent per day.

As referenced earlier, we have elected to modify our drilling schedule and have reallocated capital within our core operating regions and are concentrating our efforts on higher netback assets with timing changes resulting in a large portion of our production additions occurring in the third and fourth quarters of this year. Our forecasted fourth quarter production is expected to average approximately 170,000 barrels of oil equivalent per day, which represents 10% per share growth7 relative to the fourth quarter of 2022 after adjusting for the recently completed dispositions.

We remain committed to our return of capital framework which will result in 75% of free funds flow being returned to shareholders upon reaching our $1.3 billion net debt milestone, including the targeted 26% dividend increase to $0.73 per share annually. We expect to reach the $1.3 billion net debt milestone by mid-2023 at current strip prices8.

On behalf of our employees, management team and Board of Directors, we would like to thank our shareholders for their support and look forward to updating you on our progress throughout the year.

CONFERENCE CALL AND WEBCAST

Whitecap has scheduled a conference call and webcast to begin promptly at 9:00 am MT (11:00 am ET) on Thursday, April 27, 2023. The conference call dial-in number is: 1-888-390-0605 or (587) 880-2175 or (416) 764-8609

A live webcast of the conference call will be accessible on Whitecap's website at www.wcap.ca by selecting "Investors", then "Presentations & Events". Shortly after the live webcast, an archived version will be available for approximately 14 days.

We seek Safe Harbor.