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WHITECAP RESOURCES INC NEWS RELEASE April 5 , 2021 WHITECAP RESOURCES INC . CONSOLIDATES TOP TIER MONTNEY ASSETS AND POSITIONS FOR ENHANCED FREE FUNDS FLOW CALGARY , ALBERTA - Whitecap Resources Inc. ( " Whitecap " or the " Company " ) ( TSX : WCP ) is pleased to announce that it has entered into an arrangement agreement ( the " Arrangement " ) to indirectly acquire Kicking Horse Oil & Gas Ltd. ( " Kicking Horse " ) , a privately held indirect subsidiary of Quantum Energy Partners , for aggregate consideration of $ 300 million , consisting of 34.5 million Whitecap common shares ( determined based on the five - day volume weighted average share prices of the Whitecap shares on the TSX prior to the signing of the Arrangement ) and $ 56 million in Icash and the assumption of net debt ( the " Acquisition " ) estimated at $ 54 million as at February 28 , 2021. Kicking Horse's assets primarily consist of a condensate rich Alberta Montney development at Kakwa with current production of approximately 8,000 boe / d ( ~ 32 % liquids , ~ 90 % of which is condensate ) . The Acquisition is expected to close on or before May 31 , 2021 . Strategic Rationale The Acquisition is a continuation of Whitecap's long - term strategy of selectively consolidating high quality assets in our core operating areas to enhance free funds flow and return of capital to shareholders . The Kicking Horse assets are well positioned in the liquids - rich portion of the Alberta Montney , complement our existing Montney position at Karr and have significant offsetting activity . The Acquisition includes 92 ( 60.0 net ) sections of Montney rights that are 99 % operated , with an average working interest of 65 % , and provide the potential for further working interest consolidation . Whitecap's total acreage in the Montney resource play is now 168 ( 118.0 net ) sections with 696 ( 437.4 net ) drilling locations identified across numerous Montney benches . Current production from the Kicking Horse assets is approximately 8,000 boe / d and is expected to be optimized at 18,000 - 19,000 boe / d over the next 12 – 15 months to maximize free funds flow . The Acquisition further strengthens the sustainability of our dividend and growth strategy and is expected to generate annual free funds flow of approximately $ 72 million at US $ 55 / bbl WTI and C $ 2.50 / GJ AECO . Average production ( boe / d ) ( $ MM ) Funds flow Capital investment Free funds flow Cumulative free funds flow ( 2 ) 2021 ( 1 ) 5,500 2022 18,500 2023 - 2026 18,500 $ 45 $ 152 $ 608 ( $ 75 ) ( $ 80 ) ( $ 320 ) ( $ 30 ) $ 72 $ 288 ( $ 40 ) $ 22 $ 310 ( 1 ) The impact on 2021 is based on an estimated closing date of May 31 , 2021 and , therefore , 2021 numbers do not represent full year 2021 average production , funds flow , capital investments and free funds flow . ( 2 ) Cumulative free funds flow includes estimated 2021 hedging losses from the Acquisition of $ 10 million at US $ 60 / bbl WTI and C $ 2.50 / GJ and estimated 2022 hedging losses of $ 10 million at US $ 55 / bbl WTI and C $ 2.50 / GJ AECO . Highly accretive to key 2022 per share metrics including 10 % on funds flow , 9 % on free funds flow , 13 % on discretionary funds flow and 11 % on production . • Increases Whitecap's 2022 discretionary funds flow ( after capital investments and dividends ) by 20 % to approximately $ 270 million at US $ 55 / bbl WTI and C $ 2.50 / GJ . Top tier Montney inventory of 575 ( 362.0 net ) drilling locations of which only 12 % are booked in Whitecap's internal reserves evaluation for the Acquisition , which increases Whitecap's proved plus probable reserve life index by 6 % to 18.8 years . Enhances Whitecap's strong environmental , social and governance ( " ESG " ) profile with limited asset retirement obligations of $ 5.5 million and a strong liability management ratio of 17.3 times .