The Globe and Mail reports in its Wednesday, June 4, edition that Desjardins Securities analyst Chris MacCulloch has lowered his recommendation for Whitecap Resources to "hold" from "buy." The Globe's David Leeder writes that Mr. MacCulloch slashed his share target by $1.50 to $10. Analysts on average target the shares at $12.91. Mr. MacCulloch says in a note: "We remain supportive of the recent combination with Veren given the natural operational fit between the two companies and the potential synergies on offer, which we continue to view as understated. However, our updated commodity price deck has materially weighed on our outlook, particularly with respect to the dividend; it now appears increasingly stretched with a 2026 capex-adjusted payout ratio of 110 per cent based on current strip prices, even assuming a more conservative $2.4-billion capital program next year vs the $2.6-billion level previously telegraphed by management. By extension, we see limited opportunity for meaningful debt reduction, let alone share buybacks, in the absence of further asset dispositions which may be forthcoming. Bottom line, we view a rightsizing of the 8.4-per-cent dividend yield as a painful but necessary step for Whitecap."