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WHITECAP RESOURCES INC NEWS RELEASE October 14 , 2021 WHITECAP RESOURCES INC . ANNOUNCES 2022 BUDGET , 2021 GUIDANCE UPDATE AND INCREASED CASH RETURNS TO SHAREHOLDERS CALGARY , ALBERTA - Whitecap Resources Inc. ( " Whitecap " or the " Company " ) ( TSX : WCP ) is pleased to announce its 2022 budget , an accelerated fourth quarter 2021 capital program and 38 % increase to its dividend . Highlights 2022 Budget . Capital spending of $ 470 - $ 490 million is expected to generate average production of 121,000 123,000 boe / d ( 73 % liquids ) . The budget is $ 90 million lower than preliminary expectations , with approximately $ 55 million due to acceleration of capital into late Q4 / 21 to solidify service sector requirements while optimizing the 2022 capital program , and approximately $ 35 million from continuation of the capital efficiency improvements achieved during 2021 . Revised 2021 Guidance . Capital spending is now expected to be $ 425 - $ 435 million which adds 39 ( 34.7 net ) wells to our Q4 / 21 program . Starting our 2022 capital program early and locking in key services will help to ensure the efficient execution of our 2022 capital plans . We are also increasing our 2021 average production guidance to 111,000 – 112,000 boe / d ( 76 % liquids ) primarily due to the continued outperformance of our base 2021 program and from the increase in fourth quarter capital . Dividend Increase . The Board of Directors has approved an increase to the monthly dividend to $ 0.0225 per common share from $ 0.01625 per common share which equates to an annual dividend of $ 0.27 per common share . The increase will take effect beginning with the October dividend payable in November . Inclusive of the dividend increase , Whitecap expects to be able to fully fund its 2022 capital program and dividend with funds flow down to approximately US $ 40 / bbl WTI and at US $ 70 / bbl WTI the dividend represents only 12 % of 2022 funds flow , highlighting the sustainability of the increased dividend level . 2022 Budget Our 2022 budget includes capital spending of $ 470 - $ 490 million to drill 163 ( 131.8 net ) wells , resulting in average production of 121,000 - 123,000 boe / d ( 73 % liquids ) . With the strategic acquisitions completed in 2021 , our natural gas production in 2022 is expected to be approximately 198,000 mcf / d , allowing our shareholders to also benefit from the currently strong natural gas prices in conjunction with increasing crude oil prices . In addition to our drill , complete , equip and tie - in costs , we will be spending approximately $ 85 million on waterflood / enhanced oil recovery ( " EOR " ) initiatives , including $ 28 million for CO2 purchases , along with health , safety and environmental initiatives . Our budget is designed to generate significant free funds flow by advancing our growth projects while maintaining our low base decline rate of approximately 20 % . At US $ 70 / bbl WTI and C $ 3.75 / GJ AECO , we forecast 2022 funds flow of $ 1.4 billion and discretionary funds flow ( after capital spending and the increased dividend ) of approximately $ 740 million , resulting in net debt of $ 260 million and a debt to EBITDA ratio of 0.3x providing us with significant optionality for continued enhancement to shareholder returns . Further budget details and our breakdown by business unit is as follows : Northern Alberta & B.C. We expect to spend $ 165 - $ 170 million to drill 18 ( 14.8 net ) wells , including 10 ( 6.8 net ) Montney wells at Kakwa and Karr . Along with maintaining one rig throughout the year at Kakwa and Karr , we anticipate spending $ 15 - $ 20 million to develop water handling infrastructure to further improve operating costs , completion costs and water management in the area . Our remaining 8 ( 8,0 net ) wells will target the Cardium and Charlie Lake formations . Eastern Saskatchewan . We expect to spend $ 135 - $ 140 million to drill 62 ( 51.5 net ) wells . At Weyburn , we anticipate drilling 15 ( 9.8 net ) wells , including 10 ( 6.5 net ) wells as part of our next CO2 EOR expansion phase along with 5 ( 3.3 net ) infill wells . Following up on our very successful 2021 conventional program , we plan to drill 39 ( 33.8 net ) Frobisher wells , including 26 ( 22.3 net ) multi - leg horizontal wells . Our remaining 8 ( 7.9 net ) wells are targeting other Mississippian formations along with 1 ( 1.0 net ) Torquay well . Western Saskatchewan . We expect to spend $ 95 - $ 100 million to drill 60 ( 49.8 net ) wells . Our Viking asset continues to mature and along with operational improvements , its base decline has shallowed , and it